On the 57th day, after the cinema returned to work for the first 5 billion, there was good news in the film market!

On September 15, the China Film Distribution and projection Association issued the guidelines for epidemic Prevention and Control of the reopening of Film projection sites (third Edition) (hereinafter referred to as the Guide). The Guide clearly states in the item "audience entry and exit Management" that in principle, the attendance rate of each film screening venue shall not exceed 75%, and requires reasonable arrangement of screenings, reduction of screenings, extension of interval breaks, and so on. This also means that the upper limit of attendance of cinemas will be further raised after they return to work. It is reported that the "guide" will come into effect on September 25 and will apply to "winning the championship" and follow-up National Day films released on the same day.

Happy Blue Ocean opened by 20%, and once invested in "Let bullets fly".

Affected by the good news of "cinema attendance relaxed again", film and television stocks rose collectively in early trading today, with happy blue ocean opening trading up 20% at one time, intraday Tangde Film and Television rose more than 13%, Warsaw Bainer rose more than 7%, and Huayi Brothers rose more than 6%.

Happiness Blue Ocean is the first state-controlled TV series investment production and film industry chain operation of the listed company on the gem. The company is committed to the creation of high-quality and diversified film and television content, and has launched a large number of TV plays with good social and economic benefits. In terms of film production, the company has invested in "Let bullets fly", "October siege", "martial arts", "Bloody son" and other films, which have a good reputation at the box office.

Among them, the group-controlled film "fireworks in the Day" won the Best Picture Golden Bear Award and the Best Actor Silver Bear Award at the 64th Berlin Film Festival, and the 51st Golden Horse Award in Taiwan. "Best Art Design Award", the Ninth Asian Film Awards "Best Actor", "Best Screenplay" and other awards. The group's projection and distribution terminal business has also attracted a lot of attention, and the box office of its Happy Blue Ocean cinema chain has become one of the top 10 in the country and the first in Jiangsu.

Prior to this, Happy Blue Ocean released a semi-annual report on the evening of August 27, 2020, saying that in the first half of the year, the net profit belonging to the owner of the parent company was 224 million yuan, compared with 5.081 million yuan in the same period last year, from profit to loss; operating income was 90.915 million yuan, down 90.71% from the same period last year; basic earnings per share was-0.6013 yuan, compared with 0.0136 yuan per share in the same period last year.

By the close of midday, the blue sea of happiness was up 12.56%.

A number of other movie stocks soared.

Affected by the good news, film and television stocks opened higher this morning. In addition to the blue sea of happiness, Tangde Film and Television rose 6.34% and Huayi Brothers rose 2.41%.

Cancel "cross seats" and relax cinema attendance to 75%

On September 15, the China Film Distribution and projection Association issued the guidelines for epidemic Prevention and Control of the reopening of Film screening sites (the third edition). Starting from September 25, 2020, the restrictions on attendance have been further relaxed.

Compared with the second edition, the third edition of the guidelines for epidemic Prevention and Control of Film screening sites, the main changes are as follows:

1. Abolish the rigid rule of "cross-booth" and increase the attendance rate from 50% to 75% per game.

2. "in principle, snacks and drinks are not sold in film screening venues, and diet is prohibited in cinemas in principle." It was changed to "No eating and drinking during the screening of the movie".

3. "the staff and audiences who supervise the entry into the cinema area must wear masks throughout the process." in the third edition, the word "whole process" is removed.

As the epidemic situation has been gradually controlled and stabilized, the epidemic prevention measures in cinemas are also being adjusted, showing a trend of gradually opening up. These new rules will be implemented on September 25, which undoubtedly laid the foundation for the next "National Day" blockbuster outbreak.

An industry source told the fund that cinema attendance was relaxed in expectations, the market capacity became larger, and the National Day box office was expected to be optimistic. According to the attendance rate, film production, the number of cinemas back to work, the box office and other aspects, when the National Day file, it can basically return to normal.

After 57 days of work, the box office exceeded 5 billion.

Since cinemas resumed work on July 20, the box office has exceeded 5 billion yuan as of Sept. 14, with 140 million cinemas nationwide and 11.22 million screenings, according to Maoyan Professional Edition. Eight hundred, I'll wait for you at the end of time, Creed, Harry Potter and the Sorcerer's Stone and Mulan are in the top five at the box office.

Domestic films accounted for only seven of the top 20 at the box office, but contributed nearly 2/3 of the 5 billion box office. Director Guan Hu's "eight hundred" won 2.679 billion. According to the current box office share, the share of the film has exceeded 950 million, and that of the cinema is nearly 1.3 billion. In addition, Qixi Festival's box office champion "I am waiting for you at the end of time" also contributed nearly 500 million at the box office.

Director Christopher Nolan contributed the largest number of films, with a total of three. Interstellar, which was re-released on August 2, grossed more than 100 million at the box office, ranking second in the re-release. The return of Inception also ranked 15th at the box office. The new film Creed finally made its debut, with 5 billion ranking third. Nolan's three films together contributed more than 500 million at the box office.

After returning to work, the number of reproductions reached 6 in the top 20 at the box office, and there were more reproductions in addition to the top 20. "Harry Potter and the Sorcerer's Stone" won the title with a score of 191 million, and "manslaughter" and "Interstellar" also grossed more than 100 million at the box office.

According to industry insiders, cinemas grossed 5 billion yuan in less than two months after returning to work from July 20 to September 14, which is an exciting achievement, and cinemas have recovered.

At present, the National Day holiday is coming. "winning the championship" played in the front on September 25, followed by Jackie Chan's "vanguard" on September 30, and on October 1, "me and my hometown", "I will be home at one o'clock" and "Jiang Ziya" will follow. Industry insiders predict that this year's National Day box office will exceed that of last year.

National Day film and television section to meet the "retaliatory consumption" market?

For cinema attendance limit raised to 75%, institutions also generally believe that the National Day film and television section to welcome the "retaliatory consumption" market.

Huaan Securities Research News believes that the film sector was greatly affected by the epidemic in the first half of the year, and the performance in the second half of the year is expected to rebound in 2020 H1. Offline entertainment, represented by the cinema line, has been greatly affected because of the impact of the epidemic, dragging down the income of the entire film and television sector and the net profit of returning home. In 2020, the net profit of H1 film and television sector was-4.8 billion. With the resumption of work in cinemas across the country on July 20, and high-quality films have been set, it is believed that the plate is expected to usher in a bottom reversal. Thanks to the release of "eight hundred" and the National Day stalls of high-quality films, it is expected to continue to drive the audience to repair the mood of watching movies, believing that the retaliatory consumption of the film sector will appear in the National Day stalls. In September, it is recommended to focus on the investment opportunities of high-quality films for the expected further repair of the sector.

According to the Central Plains Securities Research report, the monthly box office in August was nearly 3.4 billion, which was still lower than that in the same period in 19 years, but it was mainly based on the low recovery rate at the initial stage of work, and the producers' concerns about the film's box office revenue led to a lag in the supply of content. from the good box office results of "eight hundred", we can see that the audience's mood did not decline because of the epidemic, but there was a concentrated release. As we enter September, the pace of film supply is significantly accelerated, coupled with a number of Spring Festival blockbuster films rescheduling National Day, the audience mood is expected to recover further in the next 1-2 months. In addition, taking into account the current domestic good control of the epidemic, the current restrictions on attendance and food and beverage sales business restrictions will also be gradually relaxed to further enhance the profitability of cinemas.

Guoxin Securities pointed out that cinema lines resumed work in an orderly manner, optimistic about cinema line integration and content leader, and suggested to focus on two main lines: (1) cinema line integration: clearing small and medium-sized cinemas, increasing industry concentration, and stable leading advantages. It is recommended to pay attention to Wanda film, Hengdian film and television, Chinese film, Shanghai film and other cinema companies; (2) high-quality content leader: the leading share of the industry is expected to continue to increase after the downward cycle.

Zhongtai Securities believes that the long backlog of movie demand and travel restrictions caused by the epidemic, and the stacking of high-profile content is expected to lead to a further pick-up in the film market and box office.