China Film (600977) 2018 Annual Report and 2019 First Quarterly Report Review： Steady Performance, Policy Dividends, High Barriers
China Film (600977) 2018 Annual Report and 2019 First Quarterly Report Review: Steady Performance, Policy Dividends, High Barriers
The event company released the 2018 annual report and the 2019 first quarter report.
Opinions: 1. Revenue and profit growth are stable.
In 2018, the company initially achieved revenue of 90.
380,000 yuan, an increase of 0 in ten years.
55%, achieving net profit attributable to shareholders of listed companies.
95 ppm, an increase of 54 in ten years.
85%, net profit attributable to non-recurring gains and losses of shareholders of listed companies8.
90 ppm, a ten-year increase of 7.
99%, non-recurring gains and losses are mainly related to the recognition of investment income after China Film Barco’s equity increase.
2019Q1 company revenue 22.
26 ppm, an increase of ten years.
28%, net profit attributable to mother 3.
55 ppm, a ten-year increase4.
50%, net of non-attributed net profit3.
$ 4.5 billion, an annual increase of 5.
2. Film distribution and marketing, policy barriers built into a moat, leading mergers and consolidation.
In 2018, the company participated in participating in the distribution of domestic movies and gradually made a box office 131.
5.5 billion, accounting for 40% of the domestic box office area, has released a number of explosions including “Chinatown Detective 2”, “I am not a medicine god” and many other popular movies.
Released 125 boxes of imported films.
04, accounting 天津夜网 for 58% of the distribution of imported films.
The top of the leader is solid, or it will benefit from the dual superimposed effects of the increase in the proportion of imported movies in box office and the growth of market box office in 2019.
3. China Film Barco’s consolidated statement, the revenue of the film service sector increased by 31 each year.
In the third quarter of 2018, it completed the acquisition of 9% equity of China Film Barco and indirectly held 51% equity. In addition to the scope of consolidated statements, the film service sector products include China Giant Screen and digital projectors.
This segment will benefit from the upgrade of projection equipment and the tide of digital projection equipment update cycles, and is expected to maintain rapid growth.
4. The production sector has improved significantly, and its revenue has increased in 18 years.
84%, gross profit margin changed from negative to 25.
In 2018, the company led and participated in the production of 15 movies, and gradually achieved a box office of 81.
3.3 billion, the profit side improved substantially, accounting for 21% of domestic box office.
The company’s main derivative and the 2019 Spring Festival film “Wandering Earth” ranked second in the domestic film and television box office with 4.6 billion, contributing about 2 to the company’s revenue.
5. Investment advice and profit forecast: We expect the EPS for 2019-2021 to be zero.
95, corresponding PE is 23/21/19 times, maintaining a “Buy” rating of 6, the risk prompts the risk of changes in the box office policy of imported movies, the overall box office growth rate is less than expected, and key film and television projects are less than expected