UBS cut Maoyan Entertainment's (01896) adjusted net profit forecast for this year by 6% to 980 million yuan.
The Zhitong Finance App learned that UBS released a research report saying that maintaining the “buy” rating of Maoyan Entertainment (01896) is expected to help increase the company's market share. Coupled with this year's ideal movie content pipeline, many major blockbusters will be screened within this year. It is estimated that the overall online ticketing revenue of Maoyan will increase by 3% throughout this year, and the target price will rise from HK$12.05 to HK$12.5.
The report cites that the company's revenue last year increased 105% year on year, in line with market expectations. Adjusted net profit increased 342% year on year, 11% to 12% higher than the bank's and market expectations. It is believed to be driven by effective cost control measures and other financial benefits during the period. The bank pointed out that in 2023, the box office of Chinese films reached 54.9 billion yuan, returning to the pre-epidemic level of about 86%, while the box office of Chinese films has reached 16.6 billion yuan since the beginning of the year, an increase of 3% over the previous year. Due to the impact of the high base for the same period last year, it is predicted that the annual box office will remain the same year on year. As a result, Maogan's online movie ticket sales revenue forecast for this year will also be the same as year on year. The total revenue growth forecast for the whole year was lowered to 4%, and the adjusted net profit forecast was lowered by 6% to 980 million yuan.