Core Viewpoint - Cat's Eye Entertainment reported a total revenue of 4.082 billion RMB and a net profit of 182 million RMB for the year 2024, with an adjusted net profit of 310 million RMB, and proposed a final dividend of 0.32 HKD per share for the fiscal year 2024 [1] Group 1: Financial Performance - In 2024, Cat's Eye Entertainment achieved a total revenue of 4.082 billion RMB and a net profit of 182 million RMB, with an adjusted net profit of 310 million RMB [1] - The company proposed a final dividend of 0.32 HKD per share for the fiscal year 2024 [1] Group 2: Industry Position and Market Trends - The national box office for films in 2024 was 42.502 billion RMB, a decrease of 22.6% compared to 2023, while the live performance box office revenue grew by 15.37% to 57.954 billion RMB [2] - Cat's Eye Entertainment participated in the release of 63 domestic films, achieving a cumulative box office of approximately 23.2 billion RMB, including 8 out of the top 10 domestic films in 2024 [2] Group 3: Business Growth and Strategy - The company continues to enhance its ticketing and promotional services, leveraging technology to improve service capabilities and platform value [3] - Cat's Eye Entertainment's ticketing services for concerts saw a GMV increase of approximately 90% year-on-year, with significant contributions from major artists [3] - The company is expanding its international collaborations, particularly in Southeast Asia, the Middle East, and Latin America, while also supporting local cultural initiatives [3] Group 4: Future Outlook - Cat's Eye Entertainment plans to strengthen its strategic investments in entertainment content and maintain its leading position in film promotion and distribution [4] - The company aims to enhance its involvement in the production and promotion of major films and continue its long-term development in animated films [4]

Core Viewpoint - Cat's Eye Entertainment reported a total revenue of 4.082 billion yuan and a net profit of 182 million yuan for the year 2024, with an adjusted net profit of 310 million yuan, while proposing a final dividend of 0.32 HKD per share [1] Group 1: Financial Performance - Total revenue for 2024 was 4.082 billion yuan, with a net profit of 182 million yuan and an adjusted net profit of 310 million yuan [1] - The company proposed a final dividend of 0.32 HKD per share for the fiscal year 2024 [1] Group 2: Market Position and Performance - Cat's Eye Entertainment maintained a leading position in the industry with a record high box office coverage for its main promotional films and a rich project reserve [1] - The company participated in the release of 63 domestic films, achieving a cumulative box office of approximately 23.2 billion yuan, with 8 out of the top 10 domestic films in 2024 being produced or distributed by Cat's Eye [2] - The company’s ticketing services for concerts saw a GMV growth of approximately 90% year-on-year [2] Group 3: Industry Trends - The national box office for films in 2024 was 42.502 billion yuan, a decrease of 22.6% from 2023, while the live performance ticket revenue increased by 15.37% to 57.954 billion yuan [1] - The film market in 2025 started strong, with a total box office exceeding 24.2 billion yuan by March 26, 2025, driven by record-breaking performances during the Spring Festival [3] Group 4: Strategic Initiatives - Cat's Eye Entertainment is focusing on enhancing its commercial capabilities through partnerships with internet platforms and exploring AI technology applications in the film industry [1] - The company upgraded its professional version to provide authoritative overseas release information and box office data for domestic films, becoming the first in the industry to do so [2] - The CEO emphasized a commitment to the "technology + full entertainment" strategy to enhance core competitiveness and profitability in the entertainment sector [3]

Core Insights - In 2024, the company reported total revenue of 4.082 billion yuan, a decrease of 14.2% year-on-year, and a net profit of 182 million yuan, with adjusted net profit at 310 million yuan. The board declared a final dividend of 0.32 HKD per share for the fiscal year 2024 [1] Group 1: Film Production and Distribution - The company participated in the production and distribution of 63 domestic films, achieving a total box office of approximately 23.2 billion yuan. It was involved in 8 out of the top 10 domestic films by box office in 2024, including 6 films for which it had primary control over marketing and distribution [1] - During the reporting period, the company was involved in the release of 60 domestic films, with 36 films under its primary distribution control, marking a historical high in both quantity and box office share. Notable films included "Flying Life 2" and "The Volunteer Army: The Battle of Life and Death," which performed well during major holiday periods [2] Group 2: Animation and Content Development - The company is actively developing its own films, with several titles released during the reporting period, including "Silent Kill" and "Panda Plan." The animated film "Time Son," its first 3D animation, is scheduled for release on May 30, 2025 [2] - The company has made significant investments in talent acquisition, creator collaboration, IP incubation, and technology for animation films, indicating a strategic focus on this segment [2] Group 3: Ticketing and Live Events - In the ticketing business, the gross merchandise value (GMV) for concerts increased by approximately 90% year-on-year. The company is expanding its ticketing services through innovative methods such as cloud screenings and live streaming [3] - The company is enhancing its infrastructure and service capabilities in the live entertainment sector, aiming to expand its commercial cooperation beyond Hong Kong and Macau [3] Group 4: Future Strategy - The CEO stated that in 2025, the company will adhere to a "Technology + Full Entertainment" core development strategy, focusing on enhancing core competitiveness and profitability while serving the entertainment industry [4]

Core Insights - Cat Eye Entertainment reported a total revenue of 4.082 billion RMB and a net profit of 182 million RMB for the year 2024, with an adjusted net profit of 310 million RMB, highlighting the company's financial performance and commitment to shareholder returns through a proposed final dividend of 0.32 HKD per share [1][2] Group 1: Business Performance - The company participated in the release of 63 domestic films during the reporting period, achieving a cumulative box office of approximately 23.2 billion RMB, with 8 out of the top 10 domestic films being produced or distributed by Cat Eye [1] - Cat Eye's promotional and distribution efforts included 60 domestic films, with 36 being under its main control, marking a historical high in both the number of films and box office share [1] - The company is focusing on self-developed content and IP cultivation, enhancing its content creation capabilities, and has made significant progress in the animation film sector [1] Group 2: Future Developments - Cat Eye's first 3D animation film, "Time's Son," is scheduled for release on May 30, 2025, along with other animated films like "Summer of Little Monsters" [2] - The ticketing business achieved record highs in total revenue and GMV, with a 90% year-on-year increase in GMV for concert ticketing services [2] - The company plans to invest in long-term development of the live entertainment sector, enhance infrastructure and service capabilities, and expand overseas business collaborations [2] - In the technology domain, Cat Eye aims to leverage its technological expertise and industry insights to explore innovative business opportunities, particularly in AI integration within the film industry [2]

Core Insights - Cat's Eye Entertainment reported a total revenue of 4.082 billion RMB and a net profit of 182 million RMB for the year 2024, showcasing strong performance in the film and live entertainment sectors [1] - The company proposed a final dividend of 0.32 HKD per share, reflecting confidence in future operations and shareholder value [1] Film Industry Performance - In 2024, the total box office for national films reached 42.502 billion RMB, a decrease of 22.6% from 2023, while the live performance sector saw a revenue increase of 15.37% to 57.954 billion RMB [2] - Cat's Eye participated in the release of 63 domestic films, achieving a cumulative box office of approximately 23.2 billion RMB, with 8 out of the top 10 films being produced or distributed by the company [2][3] Marketing and Distribution - The company enhanced its promotional capabilities, controlling the distribution of 36 domestic films, achieving record highs in both the number of films and box office share [2][3] - Cat's Eye's films have consistently performed well in various festival awards, demonstrating its ability to identify and produce quality content [3] Animation and Content Development - Cat's Eye is actively investing in the animation film sector, with its first 3D animation film "Time's Son" set to release in May 2025 [4] - The company is focusing on developing its own intellectual properties and has successfully launched several films that received positive box office results and critical acclaim [3][4] Live Entertainment Growth - The company reported record highs in revenue and GMV for its offline ticketing business, with a 90% year-on-year increase in GMV for concerts [6] - Cat's Eye is expanding its international collaborations and enhancing its service capabilities in various regions, including Southeast Asia and Latin America [6][9] Technological Integration - Cat's Eye is leveraging technology to enhance its service offerings, including the integration of AI in the film industry and improving its marketing capabilities through partnerships with internet platforms [7][9] - The company has upgraded its data services to provide authoritative information on domestic film overseas distribution, further solidifying its position in the industry [7] Future Outlook - Cat's Eye plans to continue its strategic investments in entertainment content, focusing on both film promotion and animation development [8][9] - The company aims to strengthen its market competitiveness and explore new growth opportunities while maintaining its commitment to high-quality entertainment services [9]

Financial Performance - For the fiscal year ending December 31, 2024, total revenue decreased by 14.2% to RMB 4,082.2 million compared to RMB 4,757.4 million in 2023[4] - Gross profit fell by 31.9% to RMB 1,625.0 million from RMB 2,384.9 million year-over-year[4] - Operating profit declined by 82.2% to RMB 195.9 million, down from RMB 1,098.2 million in the previous year[4] - Net profit for the year decreased by 80.0% to RMB 181.9 million, compared to RMB 907.8 million in 2023[4] - Adjusted EBITDA dropped by 71.1% to RMB 361.6 million from RMB 1,249.7 million year-over-year[4] - Revenue from entertainment content services decreased by 14.8% to RMB 1,959.8 million in 2024, compared to RMB 2,300.4 million in 2023[32] - Online entertainment ticketing services revenue dropped by 14.9% to RMB 1,921.6 million in 2024, down from RMB 2,258.6 million in 2023, reflecting a 22.6% decline in the overall Chinese box office[33] - The company's revenue decreased by 14.2% from RMB 4,757.4 million in 2023 to RMB 4,082.2 million in 2024, primarily due to insufficient supply of major films and a decline in box office performance[25] - Gross profit for the year ended December 31, 2024, was RMB 1,625.0 million, down from RMB 2,384.9 million in 2023[62] - The net profit for the year ended December 31, 2024, was RMB 181.9 million, compared to RMB 907.8 million in 2023[62] - Adjusted net profit decreased from RMB 1,029.0 million in 2023 to RMB 309.6 million in 2024[47] Dividends and Shareholder Returns - The company plans to distribute a final dividend of HKD 0.32 per share for the fiscal year ending December 31, 2024, pending shareholder approval[6] - The company aims to distribute no less than 20% of its annual profit attributable to shareholders as dividends for the fiscal years 2025, 2026, and 2027[7] - The board proposed a final dividend of HKD 0.32 per share for the year ending December 31, 2024, compared to no dividend in 2023, subject to shareholder approval[89] Market Performance and Box Office - The total box office for national films in 2024 was RMB 42.502 billion, a decrease of 22.6% from 2023[8] - The company participated in the release of 63 domestic films in 2024, achieving a total box office of approximately RMB 23.2 billion[10] - The company maintained a leading position in the industry with a record high coverage of box office performance for films it promoted[9] - The film "Silent Kill" achieved a box office of 1.351 billion yuan, becoming the runner-up in the summer box office for 2024, and received multiple awards and nominations at the 37th Tokyo International Film Festival and the 19th Changchun Film Festival[16] Strategic Initiatives and Future Plans - The company has a rich pipeline of films scheduled for release, including "Dumpling Queen," "Hunting Gold," and "The Time Traveler," among others, ensuring a diverse and sufficient content reserve[15] - The company plans to strengthen its strategic investment in entertainment content and enhance its market competitiveness through long-term investments in live entertainment and infrastructure[24] - The company aims to explore AI technology integration in film creation and seek new business cooperation opportunities in regions like Hong Kong and Macau[24] - The company is actively exploring AI technology applications in film production and visual storytelling, having developed AI software for script analysis and character creation[19] Marketing and User Engagement - The company continues to enhance its ticketing services, providing support for major artists and events, including international stars like Kanye West and Mariah Carey, further solidifying its market competitiveness[17] - The "Maoyan Professional Version" has seen a historical high in daily visits during the 2025 Spring Festival period, further enhancing its industry influence[20] - The "Maoyan Research Institute" provided in-depth data services and market insights, helping the industry understand audience preferences and consumption habits[21] - The company upgraded its live marketing capabilities, generating over ten million in commercial revenue through enhanced online marketing strategies during the reporting period[19] Financial Position and Assets - Total assets decreased slightly from RMB 12,540.1 million as of December 31, 2023, to RMB 12,505.6 million as of December 31, 2024[50] - Total liabilities reduced from RMB 3,501.8 million in 2023 to RMB 3,457.3 million in 2024, maintaining a stable debt-to-asset ratio[50] - As of December 31, 2024, the company's cash and cash equivalents amounted to RMB 2,378.0 million, primarily held in RMB and USD[52] - The total borrowings as of December 31, 2024, were approximately RMB 470.4 million, with interest rates ranging from 1.95% to 2.85%[53] - The company had unused bank financing of RMB 700.0 million as of December 31, 2024[53] Compliance and Governance - The company maintained compliance with corporate governance codes throughout the reporting period[97] - All directors confirmed adherence to the standard code of conduct regarding securities trading during the reporting period[98] - The audit committee reviewed the consolidated financial statements for the year ended December 31, 2024, and confirmed that they were prepared in accordance with applicable accounting principles[100] - The company's auditor confirmed that the financial figures for the year ended December 31, 2024, were verified, although this does not constitute an audit opinion[101]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 9.27, indicating a potential upside of 21% based on a 2025 target PE of 12x [2]. Core Insights - The 2025 Spring Festival box office in China reached a historical high of HKD 9.51 billion, representing an 18.6% increase compared to the previous year. The average daily box office was HKD 1.36 billion, up 35.3% year-on-year, driven by a 14.7% increase in audience attendance [1]. - The company's film ticketing business is expected to benefit directly from the recovery of the overall box office market, with a strong supply of quality films anticipated to drive demand [7]. - The offline performance sector is also showing significant growth, with a projected 85% increase in ticket sales for live performances in 2024, indicating a robust market environment [7]. Financial Data and Earnings Forecast - Revenue projections for the company are as follows: - 2022: HKD 2,319 million - 2023: HKD 4,757 million - 2024E: HKD 4,140 million - 2025E: HKD 5,001 million - 2026E: HKD 5,594 million - The net profit attributable to the parent company is forecasted to be: - 2022: HKD 233 million - 2023: HKD 1,002 million - 2024E: HKD 308 million - 2025E: HKD 819 million - 2026E: HKD 1,005 million [3][8]. - The earnings per share (EPS) are projected to be: - 2022: HKD 0.20 - 2023: HKD 0.87 - 2024E: HKD 0.27 - 2025E: HKD 0.72 - 2026E: HKD 0.88 [3][8]. Market Data - As of February 5, 2025, the closing price of the company's stock was HKD 7.66, with a market capitalization of HKD 88.19 billion. The stock has a 52-week high of HKD 11.08 and a low of HKD 5.56 [4].

Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [4][18]. Core Insights - The company is projected to face challenges in 2024, with expected revenue of 4.185 billion yuan, a year-over-year decline of 12%. This is attributed to a downturn in the film market and underperformance of certain films. The net profit attributable to shareholders is anticipated to drop to 178 million yuan, a year-over-year decrease of 80.5% [1][7]. - Looking ahead to 2025, the company is expected to see operational improvements, with revenue projected to rebound to 5.266 billion yuan, reflecting a year-over-year growth of 25.8% [1][7]. Financial Projections - Total revenue for 2024 is estimated at 4.185 billion yuan, down from 4.758 billion yuan in 2023, with a projected growth of 5.266 billion yuan in 2025 [3][8]. - The net profit for 2024 is expected to be 178 million yuan, significantly lower than 910 million yuan in 2023, with a recovery to 733 million yuan in 2025 [3][8]. - The earnings per share (EPS) is projected to be 0.16 yuan in 2024, compared to 0.79 yuan in 2023, with an expected increase to 0.64 yuan in 2025 [3][8]. Revenue Breakdown - Online ticketing revenue is expected to decline to 1.944 billion yuan in 2024, a year-over-year decrease of 44%. This includes a projected 1.594 billion yuan from movie ticketing, down 20% due to a weaker film market [7]. - Live performance ticketing revenue is anticipated to grow to 350 million yuan, a year-over-year increase of 29%, benefiting from a strong demand in the live performance sector [7]. - Revenue from entertainment content services is projected to be 2 billion yuan in 2024, down 13% year-over-year, primarily due to underperformance of key films [7]. Profitability Metrics - The gross margin for 2024 is expected to be 40%, a decrease of 10 percentage points from the previous year, influenced by the underperformance of certain films [7]. - The report anticipates an increase in the sales and management expense ratio to 30.5% in 2024, reflecting the impact of declining revenues while some costs remain fixed [7]. Valuation and Target Price - The target price for the company's stock is set at 10.7 HKD, based on a relative valuation method using a price-to-earnings (P/E) ratio of 13 times for 2025 [4][7].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [4]. Core Views - The company is expected to face pressure on its 2024 performance due to insufficient quality content supply in the film market, but a recovery in the broader market could support performance improvement [1][4]. - The online ticketing business is projected to generate revenue of 1.94 billion, a year-on-year decline of 14.2%, while the offline ticketing business shows resilience and growth potential [2]. - The entertainment content service segment is anticipated to achieve revenue of 2.04 billion, down 11.4% year-on-year, primarily due to underperformance of certain film projects [3]. Summary by Sections Online Entertainment Ticketing - The online ticketing business is expected to be impacted by the overall market downturn, with a projected revenue of 1.94 billion, reflecting a 14.2% decline [2]. - The offline ticketing market is showing growth, with ticket sales reaching 39.83 billion in the first three quarters of 2024, representing 79.3% of the total for 2023, and a 22.9% increase in audience attendance [2]. Entertainment Content Services - The entertainment content service segment is projected to generate 2.04 billion in revenue, a decrease of 11.4% year-on-year, mainly due to disappointing box office results from certain films [3]. - The company is involved in producing 35 domestic films in 2024, with a focus on increasing participation in key release periods [3]. Investment Recommendations - The company is positioned as a leading online ticketing platform and domestic film distributor, with an increasing participation in top films expected to enhance profitability [4]. - Adjusted revenue forecasts for 2024 and 2025 are set at 4.18 billion and 5.29 billion, respectively, with adjusted net profits of 233 million and 930 million [4].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a forecasted investment return exceeding the market benchmark by over 15% in the next 6-12 months [4]. Core Views - The company is expected to face revenue pressure in 2024, with projected revenue of 4.18 billion RMB, a 12% year-on-year decline, primarily due to a decrease in the Chinese film market box office and underperformance of some invested films [1][4]. - The report highlights a potential recovery in the 2025 Spring Festival box office, with specific films like "Detective Chinatown 1900" anticipated to perform well [3][4]. Revenue and Profit Forecast - The company’s online entertainment ticketing revenue is projected to be 1.94 billion RMB in 2024, down 14% year-on-year, which is less than the overall market decline of 22.7% [2]. - Entertainment content service revenue is expected to reach 2.01 billion RMB in 2024, reflecting a 12.7% decrease, with a stable performance anticipated between the first and second halves of the year [3]. - The gross profit margin for 2024 is estimated at 40.3%, with a significant drop in the second half of the year due to high production and promotional costs [3]. Financial Projections - The company’s revenue projections for 2024, 2025, and 2026 are adjusted to 4.2 billion, 4.6 billion, and 5.0 billion RMB respectively, reflecting a slight downward revision [4][5]. - The net profit forecast for 2024 is revised down to 190 million RMB, an 80% decline year-on-year, primarily due to losses from certain film investments [1][4]. Market Position and Strategy - The company is recognized as a leader in the film ticketing business, with strong correlations to the overall film market performance [4]. - The report emphasizes the company's strong film selection capabilities and its strategic partnerships with top artists, which are expected to enhance its market position [2][3].