Main points of investment
BABA Pictures is the listing platform of BABA's film business. BABA acquired a controlling stake in 1060.HK by subscribing for shares in June 2014, then acquired Yueke Software, one of China's top cinema ticketing system providers, in June 2015, and injected his Taobao movies (including Taobaopiao) and Yulebao (C2B financing platform) into listed companies in December of the same year. So far, BABA Film has included all the business of the film content industry chain "Film production + Film publicity + copyright Licensing" and the ticketing industry chain "online ticketing platform + Cinema ticketing Software".
The profit era of online ticketing industry may be coming, and the profit situation of Amoy ticketing will be improved. 1) the online ticketing market has entered a period of steady growth: under the circumstances that the space for the continuous improvement of the online ticketing rate is limited, the growth rate of the online ticketing market is basically equal to the growth rate of the number of moviegoers, calculated according to the income of 4 yuan per ticket, the overall market size is expected to be about 6.3 billion yuan in 2017. 2) the film ticketing market has entered a duopoly era: on September 22, 2017.9, all the business of Maoyan and the film ticketing + performance ticketing business of Tencent's Weiying era were merged to produce "New Cat's Eye Weiying". The online ticketing market has officially become a duopoly of new Cat's Eye Weiying and ticket-hunting, with a combined market share of nearly 90 per cent. 3) the profit era of the industry may be coming, and the profit situation of Amoy ticket will be improved: one of the important reasons for the loss of online ticketing companies is that a large number of tickets are made up. We judge that driven by the trend of the industry, the healthy competition between the new Cat's Eye Weiying and Taobaopiao in the future will accelerate the pace of profitability, and the whole market will enter the era of profitability.
A multi-pronged approach to create an omni-directional layout of BABA Film. BABA Film uses Taobaopiao as the fulcrum to pry the omni-directional 2C and 2B layout of cinemas, audiences and other film parties: 1) Taobaopiao is a good entrance to the audience flow, which is conducive to the development of the company's film publicity business; 2) besides Taobaopiao, Yueke is one of the top two ticketing system software companies in China, and the company itself has produced and distributed a number of excellent films.
Risk tips: intensified competition in the industry; regulatory policy risks.