The Zhitong Finance App learned that Daimo released a research report saying that the target price was raised from HK$7.5 to HK$9.4 for Maoyan Entertainment (01896) to “increase its holdings” rating. In addition, IMAX China (01970) was rated “in sync with the market”, and the target price was raised from HK$6.1 to HK$6.9. Driven by upcoming favorable factors such as holidays, the recent performance of movie stocks is expected to improve further. Given strong fundamentals and abundant short-term catalysts, Maoyan Entertainment is preferred.

The bank believes that demand for films in the mainland remains unchanged, while short-term concerns on the supply side are limited, as a large number of blockbusters originally scheduled to be screened in 2022 may be screened in 2023. The bank maintains its forecast that next year's industry box office will reach 51 billion yuan, but after that, due to the long film production cycle, potential supply bottlenecks may occur, and it is difficult to resolve this issue quickly, so it is expected that the film industry will not fully recover in 2023-24.