Guosen Securities: "Escape from Duckkov" sold over one million copies in its first week, focusing on the performance of media and internet companies in the third quarter report

According to the Zhitong Finance APP, Guosen Securities released a research report stating that the media sector ranked 7th in terms of price fluctuation among all sectors this week. Key events to focus on include the construction launch of OpenAI and Oracle's $15 billion Lighthouse Park, expected to be completed in 2028. The Seed team of ByteDance recently announced the launch of the 3D generative large model Seed3D1.0, which can generate high-quality simulation-level 3D models end-to-end from a single image. Bilibili (09626) saw over one million sales in the first week of its release of "Escape from Duckkov."

Guosen Securities pointed out that attention should be paid to third-quarter performance, maintaining a positive outlook on the new product cycle in the gaming sector and the trend of IP toys, as well as seizing opportunities from changes in film and television policies and AI applications. The gaming and IP toy sectors are expected to remain prosperous; the recent adjustment in the gaming sector provides a good opportunity. Based on product cycles and performance, it recommends stocks such as Giant Network (002558.SZ), KINGNET (002517.SZ), and G-bits (603444.SH); for IP toys, it particularly recommends Pop Mart (09992); on the media side, it focuses on the potential upward movement from the economic bottom, such as Focus Media (002027.SZ).

Additionally, attention should be paid to the shift in content policies and opportunities in AI applications; for film and television content, the focus is on policy shifts and improvements on the supply side that may drive demand, recommending platforms like Mango (300413.SZ), Bilibili, content provider Light Media (300251.SZ), and Huace Film & TV (300133.SZ), as well as distribution channels like Wanda Film (002739.SZ); for AI applications, it is crucial to seize opportunities in application scenarios, focusing on AI animation short dramas, toys, advertising, education, e-commerce, and social media.

Guosen Securities' main viewpoints are as follows:

Performance of the media sector this week: the industry rose by 4.20%, outperforming the CSI 300 but underperforming the ChiNext Index. This week (10.20-10.24), the media industry rose by 4.20%, underperforming the CSI 300 (3.24%) and the ChiNext Index (8.05%). The top gainers included Rongxin Culture, Youzu Interactive, Haikan Co., and Jiayun Technology, while the top losers included Vision China, Tianxiaxiu, Xinghui Entertainment, and Gehua Cable. In a horizontal comparison, the media sector ranked 7th in terms of price fluctuation among all sectors this week.

Key focus: Continuous breakthroughs in AI video generation technology, with "Escape from Duckkov" achieving over one million sales in its first week. 1) The construction of OpenAI and Oracle's $15 billion Lighthouse Park has commenced, expected to be completed in 2028; 2) The University of Science and Technology of China and ByteDance released the MoGA long video generation model, capable of generating high-quality videos of minute-length, 480p resolution, and 24 frames per second (fps), supporting multi-camera scene switching. 3) The Seed team of ByteDance recently announced the launch of the 3D generative large model Seed3D1.0, which can generate high-quality simulation-level 3D models end-to-end from a single image. 4) Bilibili's "Escape from Duckkov" achieved over one million sales in its first week.

Important data tracking this week: Diandian Interactive continues to perform well. 1) This week (October 20-26), the box office reached 198 million yuan. The top three films were "Life of the Stray" (41 million yuan, accounting for 20.6% of the box office), "Volunteer Army: Bloodbath for Peace" (27 million yuan, accounting for 13.8% of the box office)

1. In terms of box office, "One War Again" earned 19 million yuan, accounting for 9.5% of the box office; 2) In the variety show sector, "Flowers and Teenagers: United Season," "Wonderful Night Season 2," "The Life We Long For: Life is Like a Play," "Now Departing Season 3," and "Goodbye Lover Season 5" ranked at the top; 3) In the gaming sector, the top three mobile game revenues in China in September 2025 were Diandian Interactive's "Whiteout Survival," Diandian Interactive's "Kingshot," and Lemon Microfun's "Gossip Harbor: Merge & Story."

Investment Advice: Focus on third-quarter performance, continue to be optimistic about the new product cycle in the gaming sector and IP trendy toys, and seize opportunities from changes in film and television policies and AI applications. 1) Continue to be optimistic about the gaming and IP trendy toy boom cycle; the recent adjustment in the gaming sector provides a good opportunity. Based on product cycles and performance, recommend stocks such as Giant Network, KINGNET, and 37 Interactive Entertainment; for IP trendy toys, strongly recommend Pop Mart; on the media side, pay attention to the potential for an economic bottoming out (such as Focus Media); 2) Pay attention to the shift in content policies and opportunities in AI applications; in film and television content, focus on policy shifts and the potential for demand improvement driven by supply-side bottoming out, recommend platforms (Mango, Bilibili), content (Light Media, Huace Film & TV, etc.), and distribution channels (Wanda Film, etc.); for AI applications, focus on opportunities in application scenarios, paying attention to AI animation short dramas, toys, advertising, education, e-commerce, social media, and other directions.

Risk Warning: Regulatory policy risks; performance risks; goodwill and asset impairment risks, etc