Wanda Film’s (002739) First Coverage Report: Industry growth initially puts pressure on company performance and develops the entire industry chain to boost future growth

The film market is growing rapidly, the company’s performance is under pressure, and it will lay out upstream to strengthen synergy. In the fierce competition in the industry, the company achieved operating income of 140.

88 ppm, a six-year increase of 6.

49%; net profit attributable to shareholders of listed companies12.

95 ‰, a decrease of 14 per year.


As the movie industry enters a medium-speed growth stage, the country ‘s movie box office is likely to maintain a growth rate of about 10% in the next few years, and the adjustment period of the cinema industry has not yet ended.

As the industry leader, Wanda Films is affected by the industry 杭州夜网论坛 environment and its performance growth index.

Wanda Films began to distribute upstream, acquire Wanda Films, optimize costs and improve operational efficiency, and exert synergy effects across the industry chain. It is expected to boost overall performance growth in the future.

  The concentration of the cinema industry continued to increase, M & A and restructuring accelerated, and Wanda’s leader resettled and consolidated. The top ten cinemas in 2018 replaced 68.

7% share, growing by 1 every year.

1%, the market concentration tends to increase.

Wanda Cinema Line is 76.

Box office of 90,000 yuan (excluding service charge), 13.

The market share of 6% ranked first, and the market share rose by more than 0.

5%, stable in the eaves of the dragon head.

With the increase of theater operating difficulties, a large number of cinemas and theaters have closed down, large-scale theater companies have gone bankrupt, and the State Film Bureau has issued a document to encourage theater mergers and acquisitions. The industry merger and reorganization has accelerated, and leading theater companies are expected to continue to benefit in the future.

  Wanda Film & TV integration will be completed in 2019 to improve operational efficiency and continue to increase non-ticket revenue.
In 2019, the company will join the integration of Wanda Film and Television in organizational structure, personnel and business, and comprehensively upgrade to become a full industry chain company.

At the cinema line, the company will actively expand while ensuring the quality and profit of the cinema, and strengthen the first cinema line terminal advantage.

On the content side, the company will link up various parts of the business to give full play to the synergies and ensure that the film and television completes its annual goals as planned.

In terms of non-box office revenue, the company will continue to explore innovative operations, actively explore differentiated operations, expand derivatives and coffee business development efforts, strengthen the ability to develop high-quality content, and continue to increase non-box office revenue.

  We are optimistic about the company’s overall industrial chain integration and leading regional advantages. For the first time, we will give a “recommended” rating. We predict that Wanda Film’s revenue in 2019-2021 will be 154.

28 ppm, 168.

3.6 billion, 185.

54 ppm, a ten-year increase of 9.

51%, 9.

13%, 10.

20%; net profit attributable to mothers is 14 respectively.

5.4 billion, 16.

6.3 billion, 19.

56 ppm, an increase of 12 in ten years.

33%, 14.

34%, 17.

60%; corresponding to 2019-2021, the EPS is 0.

83 yuan, 0.

94 yuan, 1.

11 yuan.

We are optimistic about the company’s integration of the entire industry chain and the advantages of leading companies.
  Risk warning: economic downside risks; policy risks.

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