Wanda Films (002739) Quarterly Review: Performance Meets Expectations, Business Lines Attempt to Revive

Wanda Films (002739) Quarterly Review: Performance Meets Expectations, Business Lines Attempt to Revive

The company’s Q3 returns to its mother’s net profit 3.

0.5 billion, a decrease of 45.

98%, in line with market expectations, maintain overweight rating company on October 29 released 3 quarter 19 report, Q3 revenue of 40.

30 billion, an increase of 0.

47%; net profit attributable to mother 3.

0.5 billion, a decrease of 45.

98%; net profit after returning to mother 2.

680,000 yuan, a decrease of 19.

03%; performance in the middle of the performance forecast, in line with market expectations.

Revenue for the first three quarters of 19 was 115.

9.4 billion, with a decrease of 7.

45%; net profit attributable to mother 8.

2.9 billion, down 57.

25%; net profit after returning to mother 7.

72 billion, down 34.

59%.

Combined with the 3 quarterly results, the number of movies in Q4 is now lower than we expected, and we lowered our profit forecast for 19-21 to 12.

32/15.

61/17.

33 trillion, EPS is 0.

59/0.

75/0.

83 yuan.

With reference to comparable companies’ estimates, considering the company’s leading size, the estimated premium for 19 years is given to PE at 26X-27X and the adjusted target price is 15.

34-15.

93 yuan to maintain the overweight level.

The performance was mainly affected by the decline in the gross profit margin of the projection business, and the company’s third quarter notice, which was affected by the poor performance of the films produced by Wanda Films. The first three quarters of Wanda Films’ main control films continued and some box offices fell short of expectations.The box 上海夜网论坛 office performance of “Peak Glory of Full-time Masters” was average; affected by the control of the game industry and version number applications, it reported a decrease in game circulation and related business income, resulting in changes in the company’s performance.

The national film market was dull in the first half of the year. Although Q3 boosted the market during the summer season, it was revealed in the first three quarters that the country ‘s movie box office and audiences in the first three quarters were still declining, which drove the performance of the projection business down.

Prospects for the film projection business: The quality of content will become a trend, which is expected to drive the movie market to recover. In the long run, according to Cat’s Eye Professional Edition, 19Q3 national movie market 都市夜网 box office 154.

2.1 billion, with a decrease of 2.

13%; about 4 visitors.

700 million, with a decrease of 1.

5%; driven by “Nezhang”, the Q3 movie market has picked up slightly.

From the excellent performance of the National Day film market this year, it can be ground up, and the audience ‘s viewing needs are still there. We believe that the downturn in the 1-3 seasons of the film market is mainly affected by insufficient supply of high-quality video content, but in the long run, the quality of content will become a trend.The supply of high-quality content will increase. At the same time, the company, as a domestic theater leader, is leading in operating indicators and has the highest market share for several consecutive years. We are still optimistic about the company’s long-term performance in screening and non-ticketing.

Film and television business outlook: “Tang Tan 3” and many high-quality drama series are designed to promote performance growth. According to the Cat’s Eye Professional Edition, 19Q4 will release “Manslaughter”, “Beneficiaries”, “Party of Southern Station”; “Chinatown””Detective Case 3” has been finalized in the first stage. Based on the good reputation and excellent box office of the first two, “Don’t Explore 3” is worth looking forward to. For the TV series, the company invested in “Big Time”, “Hidden and Great”, “Xiangyang””Life”, “Love Haute Couture” and many other dramas are expected to be broadcast in 19Q4-20, TV drama business is expected to pick up.

Screening, film and television business is waiting to pick up, and the development of the entire industry chain is expected to maintain the level of increase in holdings. We believe that the company’s filming, film and other services are expected to gradually pick up; the game business, benefiting from the release of the version number, is also expected to show a pick-up.

After the acquisition of Wanda Television, the whole industry chain layout will be formed, and the synergistic effect is expected to gradually appear gradually.

Combined with the 3 quarterly results, the number of movies in Q4 is lower than expected. We lower our profit forecast for 19-21 to 12.32/15.

61/17.

330,000 yuan (before adjustment: 13.

03/15.

61/17.

3.3 billion), the EPS in 19-21 is 0.

59/0.

75/0.

83 yuan.

With reference to the 19-year PE estimates of comparable companies in various businesses, the company’s leading position is given an estimated premium of 19-year PE estimates of 26X-27X, corresponding to an adjusted target price of 15.

34 yuan -15.

93 yuan to maintain the overweight level.

Risk reminder: The box office growth of the country’s movies is less than expected, and the effect of Wanda’s film and television products is less than expected.

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