According to a research report released by China International Capital Corporation (CICC), the online platform sector has demonstrated overall upward momentum recently, driven by recovering market sentiment, companies' better-than-expected fundamental performance, and accelerated implementation of AI applications.

Looking ahead, CICC maintains that the sector's overall valuation remains within a reasonable range, and the previously proposed investment logic of using fundamentals as an anchor while treating AI contributions as marginal incremental option value continues to be effective. For fundamental analysis, investors should focus on companies with favorable competitive landscapes, high business momentum, and valuations at low or reasonable levels. For AI option value, attention should be directed toward companies with unique advantages in AI application deployment.

**Advertising Industry**: Overall online advertising market grew 15.7% year-over-year in 2Q25, with divergence in advertising growth rates among different platforms accelerating further. Companies benefiting from sector advantages or actively exploring new monetization channels still achieved solid year-over-year advertising revenue growth. AI empowerment for domestic advertising platforms is gradually materializing, with some companies experimenting with end-to-end generative recommendation systems. Additionally, the integration of large models and recommendations may initially benefit second- or third-tier advertising platforms.

**Gaming Industry**: China's gaming market size increased 10.3% year-over-year in 2Q25. From the supply side, the total number of game licenses issued from January to August 2025 grew 20% year-over-year, giving gaming companies greater control and decision-making power over new game launch schedules. From the demand side, users show enthusiasm for evergreen flagship games and non-absolute flagship games in popular sectors with innovative gameplay.

**Productivity Tools**: MEITU (01357) reported a 42.5% year-over-year increase in paid subscribers in 1H25, with paid user rate improving sequentially to 5.5%. Productivity scenario subscription penetration reached 8%. Keling generated RMB 250 million in revenue in 2Q25, with the company projecting RMB 900 million in Keling AI revenue for 2025.

**Overseas Entertainment**: The industry sees rapid scaling of new products, with stable legacy businesses plus new business increments and shareholder returns supporting valuation recovery. NEWBORNTOWN achieved 40% revenue growth in 1H25, Yalla's gaming revenue grew 17% year-over-year in 2Q25, and MOMO's overseas revenue surged 73% year-over-year in 2Q25.

**Stock Recommendations**: CICC gives a core recommendation for TENCENT (00700) and suggests attention to KUAISHOU-W (01024), NTES-S (09999), and NEWBORNTOWN (09911).

**Risk Factors**: Macroeconomic recovery falling short of expectations; tightening regulations in certain sectors; changes in external environment; AI deployment progress below expectations.