A research report released by Moto suggests raising target prices for several film stocks to reflect a faster-than-expected recovery in the box office, which is now estimated to fall by 65% in the Mainland this year, meaning a decline of just 15% for the rest of the year. The channel noted that the film “Yaoban” attracted audiences, alleviating concerns about the public's rejection of cinemas, due to the fact that the decline in box office will narrow for the rest of the year. The bank said the box office momentum for the National Day Golden Week could be stronger, raising Cat's Eye Entertainment (01896.HK) rating from “neutral” to “rising”, its target price from $15 to $15.5, MAX China (01970.HK) from $14 to $14.5, rating “up”, and Ali Motion Pictures (01060.HK) Rated “Neutral” and the target price increased from $1.05 to $1.2.

The bank noted a significant upward performance in box office last week, with ticket sales up year on year, driven mainly by “Yaoban” box office, which sees good films as helping drive demand for moviegoers, and consumers don't seem to be worried about the risk of infection in cinemas. While the company is not concerned about the audience's appetite, it believes it is still challenging to supply new films, especially Hollywood blockbusters.

Motong estimates that there will be at least five new films in the Golden Week of National Day, including Winning the Championship, The Striking Pioneer and Ginger Tooth, which were originally scheduled for the Chinese New Year but postponed until now. The film “Me and My Country” has a better chance of success because the actors are more popular and loving National theme. (el/k) ~

ASDAK Financial News

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