From January to December 2015, the company realized operating income of 343 million yuan, down 29.9% from the same period last year; realized operating profit of-91 million yuan, down 393.7% from the same period last year; realized net profit of 65 million yuan belonging to the parent company, turning losses into profits over the same period last year; and basic earnings per share. It is proposed to distribute a cash dividend of 0.2 yuan (including tax) for every 10 shares to all shareholders.
A large amount of goodwill impairment is a drag on the performance: in 2015, the company's film and television entertainment business revenue increased by 135.80% year-on-year, accounting for 73.12%, leading to a sharp increase of 62.14% in business revenue from the same period last year. During the reporting period, the company achieved certain investment income through the sale of shares in Palm Technology and Jiangsu Yaolai, which further enhanced the company's profit level. The company's gross profit margin was 50.28%, a slight decline compared with the same period last year, mainly due to the increase in the proportion of the company's film and television owners. Vast Film and Television and Meira Media, which were controlled during the reporting period, have also made good development and are expected to further contribute to profits in the future.
The troika helps build an entertainment empire: the company's film and television entertainment, brand licensing, live entertainment and Internet entertainment go hand in hand. In terms of film and television, the company controls Dongyang Meila and vast film and television, the company has formed an original content manufacturing chain of film and television, artist brokerage, entertainment marketing, etc., and has accumulated a number of long-term and stable strategic partners, although the acquisition premium is high, but considering the future development is still a good move. Internet entertainment, during the reporting period to achieve the holding of hero entertainment, it has produced "national shootout", "dazzling dance every day" and other excellent mobile games. In terms of brand authorization and live entertainment, the company has many excellent IP, and may make breakthroughs in film communes, cultural cities, theme parks and live performances in the future. The company's pan-entertainment layout is becoming more and more perfect.
Promote internationalization and build the world's Huayi Brothers: during the reporting period, "The Gift", a film invested by Huayi Brothers and STX of the United States, achieved good box office performance in the North American film market. The company recently participated in South Korea's SIM company, subsidiary Huayi Tencent shares in HB company. The two companies have produced excellent TV dramas such as "you from the Star" and "that guy". In the future, it will not only improve the production level of the company's drama, but also make the company's international level to a higher level.
Profit forecast: we predict that the company's EPS in 2016-2018 will reach 0.84,1.08 and 1.29 yuan respectively, calculated according to its closing price of 28.18 yuan on March 24, 2016, corresponding to the 2016-2018 dynamic PE is 33.53,26.1 and 21.81 times, respectively, with a certain valuation advantage, taking into account the company's future development prospects, given the "recommended" rating for the first time.
Risk tips: (1) film and television revenue is not as expected; (2) the development of game business is not as expected.
