Core views

The cornerstone of the business, movie ticketing, benefits from the steady growth of the industry, focusing on entertainment content and the growth of offline entertainment. We are optimistic that under the trend of diversification of film genres, the release of high-topic, reality-themed films will continue to stimulate demand for movie viewing, drive a steady recovery in the market, and stabilize the company's performance base as a leading movie ticketing leader.

At the same time, it is recommended to focus on two aspects of growth: 1) Entertainment content will show the company's outstanding investment and promotion capabilities in 2023, and this year it still has abundant reserves, focus on the performance flexibility brought about by the release of multiple reserves, and focus on the progress of film schedules such as “Chaoyuan Alone” and “Going Alone”; 2) offline entertainment is expected to contribute to the growth of performance in many areas such as concerts, sports and e-sports, local entertainment, and overseas business. It is recommended to continue to pay attention to the business layout and development of various vertical fields.

We expect the company to achieve non-GAAP net profit of $951/1,057 million in 2024-2025, an increase of -7.6%/11.1% year-on-year, and a PE of 10.94/9.85x corresponding to the closing price on March 22, 2024.

occurrences

According to the 2023 annual report, during the reporting period, the company achieved revenue of 4.76 billion yuan, an increase of 105.1%; net profit of 9.1 billion yuan, an increase of 766.2%; and adjusted net profit of 1.03 billion yuan, an increase of 342.2% over the previous year.

In the second half of 2023, the company achieved revenue of 2.56 billion yuan, a year-on-year increase of 127.0%; net profit of 5.0 billion yuan, a year-on-year correction; and adjusted net profit of 570 million yuan, a year-on-year correction.