Events:Hengdian Film and TelevisionIt is proposed to acquire the 100% equity interest in Hengdian Film and Television production and Hengdian Pictures held by Hengdian Holdings with 122 million yuan in cash, of which the 100% equity consideration of Hengdian Film and Television production is 20.54 million yuan and that of Hengdian Pictures is 102 million yuan.
The company is flush with cash, and the industry underestimates and integrates at a low price.
By the end of August 2020, the net book assets of Hengdian Film and Television production and Hengdian Pictures totaled 113 million yuan, which is about twice as much as Pamp B. the price of this transaction is relatively low. At the end of the third quarter, the company's book cash and cash equivalents totaled more than 1 billion yuan, there were no long-term and short-term loans on the book, and cash payment of transaction consideration would not impose a burden on the company's financial affairs. At the same time, this transaction belongs to the merger of enterprises under the same control and will not producegoodwill。
The integration of the upstream film and television assets of the group will help to enhance the competitiveness of the company in the long run, and is expected to thicken
This acquisition is conducive to broadening the company's business scope, marching to the upper reaches of the industrial chain to achieve vertical integration, expanding the company's business scale with the integrated development of "content + channels", creating an ecological circle of the film industry chain, and improving market competitiveness. give full play to the potential energy of Hengdian film and television brand.
The target company is rich in project resources. In recent years, it has produced excellent works such as "chasing Dreams", "Operation Red Sea", "me and my Motherland" and "Young you". The current reserve of projects to be released include Yi Qianxi starring film "send you a Little Red Flower" and animated film "Bear haunts"? Wild mainland, etc., are expected to thicken the performance of listed companies in the short term.
Investment suggestion: affected by the epidemic in 2020, cinema companies are under greater pressure, small and medium-sized cinemas will accelerate clearance in the cold winter of the industry, and the head company's competitive advantage and market share are expected to increase. At the same time, under the background of stricter supervision of the film and television industry in the past two years, the industry ecology has been gradually standardized, and the current asset integration is conducive to the company's long-term development.
We maintain the previous profit forecast and estimate the company's operating income of 1.059 billion yuan / 2.908 billion yuan from 2020 to 2021.Net profit-314 million yuan / 377 million yuan, the current market capitalization corresponds to the price-to-earnings ratio of 28 times 2021, maintaining the "buy" rating.