Huaxi Securities Co.,Ltd. released a research report stating that Alibaba Cloud's revenue performance exceeded expectations, validating the firm's previous viewpoints. Against the backdrop of intensifying global macroeconomic volatility, AI has emerged as one of the most promising investment directions with high certainty. Leading technology companies continue to increase their computing power investments, presenting significant allocation value. The firm recommends focusing on the following investment opportunities: 1) Hong Kong internet leaders: promoting consumption and stabilizing employment, highlighting social value; 2) Gaming industry: policy incentives boost domestic demand, technological empowerment strengthens product competitiveness, and overseas expansion offers broad growth potential; 3) Film and tourism industries: consumption policies promote cinema recovery and stimulate improved consumption demand; 4) Data rights confirmation: benefiting from policy direction and industry maturation trends.
Huaxi Securities Co.,Ltd.'s main viewpoints are as follows:
Market Performance Review During the 34th week of 2025 (actual trading days from August 25-29, 2025), the Shanghai Composite Index rose 0.84%, the CSI 300 Index gained 2.71%, and the ChiNext Index surged 7.74%. The Hang Seng Index fell 0.37%, while the Hang Seng Internet Index declined 1.03%, underperforming the Hang Seng Index by 0.66 percentage points. The SW Media Index rose 1.05%, lagging the ChiNext Index by 6.69 percentage points, ranking 12th among 31 Shenwan Level-1 industries in terms of price performance. Among sub-sectors, internet services, broadcasting, and gaming ranked in the top three, rising 4.08%, 1.2%, and 3.5% respectively.
Alibaba Group Releases Q1 FY25 Results, Cloud Business Growth Exceeds Expectations This week, Alibaba Group announced its quarterly results. According to company announcements, Alibaba Cloud achieved above-expected growth in the first quarter, with quarterly revenue surging 26% year-over-year to RMB 33.398 billion, reaching a three-year high. AI-related product revenue has maintained triple-digit year-over-year growth for eight consecutive quarters, with AI revenue now accounting for over 20% of external commercialization revenue. During the reporting period, capital expenditure in AI and cloud reached RMB 38.6 billion, a historical high. Over the past four quarters, the company has cumulatively invested over RMB 100 billion in AI infrastructure and AI product development.
The firm believes that the accelerated growth of cloud business confirms the steady progress of AI commercialization. Large-scale infrastructure investment will continue to consolidate its technological moat, further highlighting leading manufacturers' dual advantages in computing resources and product development capabilities.
August License Approvals Hit Record High, Multiple Premium Games Receive Approval On August 25, the National Press and Publication Administration announced the August 2025 gaming license approval information. A total of 166 domestic online games and 7 imported online games received licenses, with 13 games undergoing license changes. Notable approvals include NetEase's "All Under Heaven: Myriad Phenomena," 37 Interactive Entertainment's "Super Bull Hero," Bilibili's "Escape from Duckov," Thunder Games' "Deploy! Kuru," Tencent's "Chaos Dreams," Shengqu Games' "Age of Discovery: Origins," and Bilibili's "Toot Toot Face Prank," among others.
As of August this year, a total of 1,050 domestic game licenses have been issued year-to-date. The firm believes license approval numbers are experiencing phased growth, reaching a new high this month. The continued increase in license numbers reflects strengthening supply-side improvement trends in the industry. Policy support provides certainty for product portfolio expansion, maintaining the industry's healthy growth momentum.
Media Industry Data Top three cinema films: "Little Monster of Langshan," "Nanjing Photo Studio," "East Island"; Top three TV dramas: "A Record of Mortal's Journey to Immortality," "Life of All Things," "Sword and Rose"; Top three variety shows: "Super Fresh Earth," "Signal of Heart Season 8," "Stand-up Comedy and Its Friends Season 2"; Top three animations: "Cang Yuan Diagram," "A Record of Mortal's Journey to Immortality," "Happy Hammer"; Top three iOS game revenue rankings: "Honor of Kings," "Game for Peace," "CrossFire: Gunfight King"; Top three Android game popularity rankings: "Heartbeat Town," "My Leisure Time," "Honkai: Star Rail."
Risk Warning Regulatory policy uncertainty risks; macroeconomic downturn risks.