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广发证券:维持阿里影业(01060)“买入”评级 目标价0.68港元

GF Sec: Maintains a "buy" rating for Ali Pictures (01060) with a target price of HKD 0.68.

Zhitong Finance ·  Jun 11 04:35

According to the China Performance Industry Association, the national box office for performances in 2023 increased by 151% compared to 2019, and the national box office for performances in January-March of 2024 increased by 117% year-on-year.

According to the news from the WiseMoney app, GF Securities released a research report stating that they maintain a "buy" rating for Ali Pictures (01060). The company is expected to achieve revenue of RMB 7.012/7.947/8.867 billion and net income attributable to owners of the parent company of RMB 0.919/1.075/1.212 billion from fiscal year 2025-2027. Referring to comparable companies, Ali Pictures is given a PE valuation of 20 times for fiscal year 2025, and the corresponding fair value of the company is HKD 0.68 per share.

The main points of the report are as follows:

There is increasing potential in movie ticketing and investment publicity.

(1) In fiscal year 2024, the revenue of the movie ticketing and technology platform was RMB 920 million, a year-on-year increase of 76.26%. The branch revenue was RMB 346 million, a year-on-year increase of 51.64%. This is mainly due to the overall recovery of the domestic movie market, and the leading positions of Taopiao Piao and Phoenix Cloud Intelligence are stable. (2) In fiscal year 2024, the revenue of movie investment, production and publicity was RMB 2.072 billion, a year-on-year increase of 68.58%. The branch revenue was RMB 467 million, a year-on-year increase of 77.70%. During the reporting period, the company participated in the production/release of over 60 movies (nearly 30 main publicity projects, and 6 self-produced and co-produced projects), with a box office share of over 60%. Co-produced projects include "The Game Changer" and "She's Missing", while main production/main publicity projects include "Hot and Sour Romance" and "Chang'an Thirty Thousand Miles".

The consolidation of Damai significantly increases profit and growth potential.

If Damai is consolidated starting from the beginning of fiscal year 2024 (actually consolidated on November 30, 2023), the company estimates that it will increase revenue by RMB 868 million and EBITA by RMB 659 million for the whole year. Damai has an absolute advantage in the domestic ticketing market and benefits from the dividend of the fast-growing industry. According to the China Performance Industry Association, the national box office for performances in 2023 increased by 151% compared to 2019, and the national box office for performances in January-March of 2024 increased by 117% year-on-year.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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