Shanghai Film (601595): Distribution business with performance in line with expectations steadily improves

Shanghai Film (601595): Distribution business with performance in line with expectations steadily improves

1H19 results basically meet expectations Shanghai Film announced 1H19 results: operating income5.

46 ppm, a 10-year increase2.

3%; net profit attributable to mother 0.

68 ppm, an increase of 16 in ten years.

4%; net profit after deduction to non-mother 0.

52 ppm, an increase of 0 in ten years.

9%, basically in line with our expectations.

Development Trend The movie screening income has increased against the trend, and the scale advantage of the cinema line is solid.

1H19 company achieved box office revenue3.

92 ppm (excluding service charge), 淡水桑拿网 an increase of 5 per year.

9%, while the national box office market appeared alternately.


In the first half of the year, sales increased by 12.

5%, leading to a significant increase in per capita consumption of goods sold.

As the company has a large number of theater resources in the core areas of first- and second-tier cities, pre-screen advertising prices have recovered and remained firm in a sluggish industry environment, and advertising revenue has therefore increased.

In terms of theater line business, the 1H19 company’s affiliated combined theater line achieved a total of 23 box office.

78 ppm, a ten-year increase3.

1%, the market share reached 8.

24%, ranking third in the country.

Forty-two cinemas were added to the United Cinemas in the first half of the year. However, due to fierce competition 南京夜网论坛 in the cinemas market and increased theater operating pressure, the franchise fee rate for cinemas continued to decline.

In terms of cost, the number of 1H19 company theaters increased by 6 and operating costs increased by 6.

8%, so the gross profit margin is reduced, but the company’s expenses are well controlled, and the sales and management expenses in the first half of the year were only 0.

51 ppm, every 2 drop in expense ratio.

9ppt to 9.


The distribution business has steadily improved, and the main distribution right of “Climb” is expected to contribute to the growth of performance in the second half of the year.

The company’s distribution team experienced staffing adjustments in 2018, and business operations were affected to some extent.

Starting in 2019, the new distribution team actively sought to announce the release of the film. In the first half of the year, it participated in the joint release of five films, including “Wandering Earth” and “Assassination of Song Ziwen”, with a cumulative box office of more than 4.6 billion yuan.

Looking forward to the second half of the year, the company has obtained the master distribution right of the National Day’s popular movie “Climber”.

As the overall responsible party for the promotion and distribution of the film, the company is expected to obtain a higher box office share.

We believe that with the support of the “distribution priority” strategy, the company’s distribution business is expected to reach advantageous resources relying on theater lines and theater management, and through linkage with the controlling shareholder Shangying Group, it will give full play to the advantages of the entire industry chain operation and achieve marketSteady increase in share.

Earnings forecast and estimation Considering the profit contribution brought by the main issue of “Climbers”, we raised our profit forecast for 20198.

4% to 2.

6.1 billion, while raising 2020 profit forecast2.

1% to 2.

7.1 billion yuan.

Currently corresponds to 2019/2020 27.

6 times / 26.6 times price-earnings ratio.

Maintain Outperform rating and raise TP by 12.

6% to 19.

70 yuan, corresponding to 28 in 2019/2020.

2 times / 27.

2 times price-earnings ratio, compared with the recent inclusion of 2.

1% upside.

The box office of risky movies did not meet expectations; industry competition intensified; rental costs increased too fast.