23H1 company performance increased significantly, Q2 home net profit increased by about 287% the company released 23-half annual report, 23H1 revenue of 2.857 billion yuan (yoy+87.95%), home net profit of 360 million yuan (yoy+1684.56%), the performance is located in the upper middle of the forecast (2.8-380 million yuan).

Deduct 323 million yuan (yoy+759.93%) from non-net profit. Among them, Q2 realized revenue of 1.412 billion yuan (yoy+146.08%,qoq-2.30%) and net profit of 179 million yuan (yoy+286.78%,qoq-1.71%). We maintain a 23-25 net profit of 9.58 yuan, 1.108 billion yuan, 1.237 billion yuan, 23 years comparable company Wind unanimously expected PE average of 30X, considering the company's outstanding creative ability, a large number of projects to be shown, imported film supply has improved significantly over the past 23 years, the company will benefit, give the company a 23-year valuation of PE 36X, maintain the target price of 18.36 yuan, maintain the "buy" rating.

With the full recovery of the film market, the box office of the company's main films is relatively high, and the share of the distribution film box office has greatly increased. The company's revenue in the creation / distribution / projection / technology / service sector is 6.59x12.78pm. RMB 2.54pm is 0.96 million yuan, with an increase of 218.23pm 105.74 / 48.15pm 8.58max 18.72%. This is mainly due to the following reasons:

1) at the industry level, according to the Cat's Eye Professional Edition, the national box office increased by 52.9% to 26.3 billion yuan in the first half of the year; 2) at the company level, films such as "wandering Earth 2" (main vote), "Man Jianghong" and "Bear's presence with me" (participation) ranked at the top of the box office. The box office of films issued by distributors accounted for 85.15% of the country's total box office, up 16.38% from 68.77% in the same period last year.

The participation of summer companies is high, and the reserves of follow-up creative projects are rich, and the distribution business of imported films continues to recover. as of August 25, the 23-year summer edition grossed about 19.7 billion yuan, the highest in the history of the stalls. The company participated in the production of six films during the period, including "Changan 30,000 miles" (box office 1.78 billion), "all eggs in one basket" (box office 3.19 billion) and so on. The company has nearly 60 projects to be released and created, including "volunteers: male soldiers attack" (23 years of National Day), "The Legend of the Condor Heroes: the Master of Chivalry" and so on. In addition, 23H1 released imported films with a cumulative box office of 3.959 billion yuan, an increase of 178.6%. As the supply of imported film content continues to improve, the company as a distributor is expected to fully benefit.

The gross profit margin of the projection business has increased significantly, and the research and development capability of film science and technology has been further enhanced. In total, 23H1's direct cinemas have achieved a total box office of 472 million yuan, with a market share of 1.98%, which is the same as the same period last year.

The gross profit margin of the projection business increased significantly by 15.22% compared with the same period last year, and it has recovered to close to 17.73% of 19H1. The main reasons are: 1) the 23H1 film market has recovered well. According to Maoyan Professional Edition, 23H1 has grossed about 26.3 billion yuan at the national box office, with an increase of about 53%. 2) the company continues to reduce costs and increase efficiency, and dynamically optimizes cinemas with poor efficiency, and 23H1 arranges to close 5 cinemas. In terms of high-tech films, the company has opened 131CINITY studios (22H1 is 70), China Film Barco projector sales of 494 sets, technology continues to enable high-format projection equipment sales.

Risk hint: the box office of the film is lower than expected, and the improvement in the supply of imported films is not as good as expected.