Hengdian Film and Television (603103) Interim Review: 2019 semi-annual report can be a great opportunity or next year

Hengdian Film and Television (603103) Interim Review: 2019 semi-annual report can be a great opportunity or next year

Hengdian Film and Television (603103) Interim Review: 2019 semi-annual report can be a great opportunity or next year

The company released its semi-annual report for 2019.

The company released its semi-annual report for 2019 and achieved operating income13.

86 ppm, a decrease of 5 per year.

41%; Realize net profit attributable to shareholders of listed companies.

73 trillion, down 23 a year.

76%; net profit attributable to shareholders of listed companies in place of non-recurring gains and losses1.

32 ppm, a decrease of 33 per year.

60%; the realization of basic profit income is 0.

27 yuan, expected average net asset income increased by 7.

61%.

Non-ticket revenue continues to grow every year, and the “4 + 1” strategy is significant.

In the first half of the year, the company realized non-ticket income3.

7.4 billion US dollars, an annual increase of 2.

47%, the proportion of non-ticket income continued to increase.

Although the number of moviegoers in the country in the first half of the year was only 8.

0.8 billion, a decrease of 10 compared with the same period last year.

At 3%, the company ‘s direct movie theater audiences were also affected, but the company continued to innovate its business model and dig deeper into the value of traffic, paid attention to differentiated operations and actively promoted the implementation of the “4 + 1” strategy, effectively increasing the ARPU value and exerting scale effects.

Merger, the company continued to develop marketable goods and strengthened the business guidance of cinema sales through joint multi-party resources, and continued to increase sales of the goods; the merged company consolidated and expanded the regional advertising resources and strengthened the supervision and guidance of advertising investment, And constantly expand screen advertising marketing.

We believe that through the company’s continued expansion of conventional cinemas with higher growth levels and service levels, the viewing volume and the size of advertising resources are intended to keep climbing, while cinema advertising is still relatively small compared to other traditional offline advertising scenarios.Under the initial prosperity, the average unit price of cinema advertising resources is still expected to increase steadily.

We believe that the company’s non-ticketing will continue to rely on a large amount of traffic from the company’s theater to support the company’s performance.

Affected by the poor performance of domestic film in the first half of the year and the nation’s screen expansion, the projection business continued to be under pressure.

In the first half of the year, the company achieved revenue from film projection business10.

12 ppm, 10-year average of 8.

04%.

In the first half of the year, the overall box office of the domestic film market was 311.

7 ‰, the ten-year average of 2.

7%, and the company’s box office revenue in the first half of the year was 12.

33 ppm, a reduction of 7 per year.

57%, of which the box office income of asset-linked theaters was 10.

51 ‰, a decrease of 7 per year.

97%, with a market share of 3.

66%.

The box office revenue of the company’s affiliated theaters has a larger decline than the overall box office in the country for two reasons. First, from the perspective of screen market share, the company’s screen area has increased by 14 in the past year.

85%, direct-operated screens increase by 14 each year.

15%, all slightly lower than the national screen over the past 15 years to grow faster than 15.

21%, and considering that this round of national screen expansion is mainly concentrated in the low-tier cities where the company is actively deployed, the company has also replaced its screen market share. Second, from the perspective of box office structure,Movie crowds relatively prefer domestic films, while domestic films made only 157 in the first half of the year.

54 ppm, a reduction of 16 per year.

94%, so the company was affected by the adjustment of the box office structure this year.We think that although the projection business as a whole may continue to be under pressure, but after the expansion of the national screen, the gradual decline of the single screen is gradually converging, and with the recovery of the domestic film box office next year, the company’s projection business is expected toThe turning point in the coming year.

Investment Advice.

Taking into account the first time the national movie box office broke through in the first half of the year, we slightly lower the company’s profit forecast from 0 to EPS in 2019-2021.

57, 0.

65 and 0.

78 yuan is reduced to 0.

46, 0.

58 and 0.

67 yuan, corresponding to 3北京男士会所1, 25 and 21 times the PE.

Our reasonable price range for 2019 is from 14.

25-17.

10 yuan down to 11.

50-16.

10 yuan, maintain “Neutral” rating.

risk warning.

Box office performance was less than expected, market competition intensified, and macroeconomic downside risks.