Investment Rating - The report maintains a "Recommendation" rating for the media industry, suggesting that the industry index is expected to rise more than 5% over the next 3-6 months compared to the benchmark index [48]. Core Viewpoints - The media sector is currently experiencing a downturn, with the media index down 0.77% last week, underperforming the CSI 300 index, which rose by 1.12% [10][4]. - The report emphasizes the importance of AI applications and cultural confidence as key drivers for the media sector, with a focus on core assets in the internet, gaming, and publishing sectors [7][8]. - The gaming market is expected to benefit from product cycles and AI integration, with specific companies highlighted for their strong product pipelines [19][20]. - The film market shows signs of recovery, with ticket sales reaching 24.116 billion yuan and total viewership at 576 million, indicating a recovery rate of approximately 100% for box office revenue compared to 2019 [23][24][25]. Summary by Sections Market Performance Review - The media index fell by 0.77% last week, while the CSI 300 index increased by 1.12%, resulting in a relative underperformance of 1.88% [10]. - The report notes that the gaming market remains strong, with several Tencent and NetEase products leading the iOS sales charts [19][20]. Industry News and Company Announcements - Significant advancements in AI technology are noted, including the launch of new models by major companies like Baidu and Tencent, which are expected to enhance user experience and application capabilities [32][33]. - The report highlights the ongoing recovery in the film industry, with a notable increase in ticket sales and audience numbers compared to previous years [23][24]. - Upcoming films and their expected release dates are listed, indicating a robust pipeline for the cinema sector [29][30].

Group 1 - Domestic box office reached 26.8 billion yuan as of May 18, with six of the top ten films coming from the Spring Festival period, indicating a weak performance post-Spring Festival [1] - The upcoming summer and National Day holidays face increased market pressure, but there are expectations for a recovery in performance with several high-potential films set to release [1][2] - A total of 15 films are anticipated to achieve box office revenues of 1 billion yuan or more in the second half of the year, covering various genres including history, war, suspense, fantasy, animation, and period dramas [1] Group 2 - "Liao Zhai: Lan Ruo Si" is backed by four listed companies and produced by a well-established animation studio, which has previously released successful films [1][2] - The animation industry is seeing a shift with companies like Pursuit Animation planning to increase their output from one film per year to two by 2026, reflecting growing market demand [2] - The number of film registrations decreased in 2025, with only 449 films registered in the first quarter, indicating potential content supply shortages in the near future [3] Group 3 - Film companies are increasingly focusing on nurturing young talent in directing and screenwriting to diversify the market and stimulate innovation [3] - There is a pressing need for the film industry to develop a more industrialized production system and reduce costs while exploring opportunities in derivative markets to expand revenue [3]

Investment Rating - The report maintains a "Buy" rating for the media industry, highlighting the potential for growth driven by AI applications and consumer spending [6][19]. Core Insights - The media industry is supported by continuous policy backing, which includes urban renewal initiatives and the exploration of AI application scenarios. This is expected to stimulate new demand and enhance business growth [5][15][16]. - The upcoming e-commerce events, such as the 618 shopping festival, are anticipated to drive significant business activity within the media sector, leveraging technology to boost consumer engagement [18][19]. - Companies in the media sector are actively innovating and exploring new business models, particularly through AI integration, which is expected to enhance operational efficiency and create new revenue streams [16][19]. Summary by Sections Industry Review - The media sector has shown varied performance, with the e-commerce index experiencing significant gains while the smart TV index lagged behind. Notable stock performances included NetEase and Xunyou Technology, which saw increases of 16.07% and 14.26%, respectively [14][25]. Policy Support - Recent policies emphasize urban renewal and digital cultural development, aiming to enhance consumer infrastructure and promote new technologies. This is expected to create new opportunities for media companies [15][16][17]. Key Recommended Stocks - The report recommends several stocks within the media sector, including Mango Super Media (300413), Yaoji Technology (002605), and Wanda Film (002739), all of which are expected to benefit from upcoming events and innovations [6][9]. Market Dynamics - The report notes that the film market is recovering, with recent box office figures indicating a weekly revenue of 2.10 billion yuan. Upcoming films are expected to further stimulate audience engagement [30][32]. - In the television sector, popular shows are driving viewership, with top-rated series achieving significant market shares [34][35]. E-commerce Trends - Major e-commerce platforms like Alibaba and JD.com are gearing up for the 618 shopping festival, with strategies in place to enhance consumer engagement and drive sales growth [26][27].

文 | 雷报 十九 编辑 | 努尔哈哈赤 电影市场面临总体票房下滑、缺乏头部影片拉动、以及营收结构单一的发展困局之际，影视公司也将目 光投向了备受年轻人热捧的"谷子经济"。 近期，万达电影发布公告称，公司全资子公司北京影时光电子商务有限公司拟与关联方上海儒意星辰企 业管理有限公司共同投资北京乐自天成文化发展股份有限公司，即52TOYS。52TOYS是国内潮玩公 司，是"IP玩具"领域的知名品牌方。透过此次投资，以新增注册资本金额和股权转让的估值进行计算， 52TOYS的估值约为42.89亿元或18.69亿元，总的投资金额为1.44亿元。此次股权转让和增资完成后，影 时光和儒意星辰合计持有乐自天成7%的股权。 图自万达电影相关投资公告 之所以投资52TOYS，是因为当前国内消费市场中，"谷子经济" 正蓬勃发展。 去年泡泡玛特狂揽130亿元营收，同比增长106.9%，经调整净利润也达到34亿元，创造了上市以来最好 业绩；而玩转IP卡牌业务的卡游2024年同样营收超百亿，同比增幅达278%，体现了行业发展的韧性。 但就电影市场而言，近年来，无论年度还是季度，国内电影市场都处于偶有爆款、整体低迷、极不稳定 的状态之中 ...

Investment Rating - The report maintains an "Outperform" rating for the media industry [5] Core Insights - The media industry is experiencing a significant rebound in fund preference and fundamentals in Q1 2025, with a notable increase in the allocation towards gaming and other segments [1][12] - The overall revenue for the media industry in 2024 is projected to be 508.1 billion yuan, with a slight year-on-year decline in net profit due to various pressures [2][27] - The gaming sector is witnessing high growth, with revenues reaching 934.34 billion yuan in 2024 and 267.19 billion yuan in Q1 2025, driven by new game launches and improved market conditions [3][36] - The film and cinema sector is benefiting from strong content supply during the Spring Festival, leading to a significant increase in revenue and profitability in Q1 2025 [4][21] - The advertising and marketing sector is under pressure from macroeconomic conditions, but there are signs of recovery as competition improves among leading companies [7][24] Summary by Sections Media Industry Overview - In Q1 2025, the media industry saw a fund holding increase of 12.52% year-on-year, with a fund holding ratio of 2.85% [11][12] - The media sector's heavy stock market value accounted for 1.04%, reflecting a 0.23 percentage point increase [1][12] - The overall low allocation ratio for the media industry decreased to 0.52%, indicating a growing preference for the sector [1][12] Gaming Sector - The gaming sector achieved revenues of 934.34 billion yuan in 2024 and 267.19 billion yuan in Q1 2025, with year-on-year growth rates of 7.74% and 21.93% respectively [3][36] - The adjusted net profit for the gaming sector in Q1 2025 was 35.04 billion yuan, marking a 47% increase year-on-year [3][41] - The sector's profit margin improved to 13.11%, reflecting a 2.25 percentage point increase [3][41] Film and Cinema Sector - The film and cinema sector generated revenues of 357.33 billion yuan in 2024 and 141.15 billion yuan in Q1 2025, with a 41% year-on-year growth in Q1 2025 [4][21] - The sector's net profit in Q1 2025 was 23.68 billion yuan, a significant recovery from a loss in the previous year [4][21] - The Spring Festival box office reached a record high of 95.10 billion yuan, driven by popular films [4][21] Advertising and Marketing Sector - The advertising sector reported revenues of 429.35 billion yuan in 2024, with a slight year-on-year decline of 5.16% [7][24] - The adjusted net profit for the advertising sector in Q1 2025 was 16.01 billion yuan, reflecting a 10.24% increase year-on-year [7][24] - The sector is expected to recover as competition among leading companies improves [7][24] Publishing Sector - The publishing sector's revenue is under pressure, but the effective tax rate has significantly decreased, leading to a recovery in net profit in Q1 2025 [27][28] - The overall revenue for the publishing sector is projected to remain stable, with a focus on maintaining quality content supply [27][28]

Core Viewpoint - The Chinese film industry is experiencing a significant downturn, with total box office revenue dropping from 64.1 billion in 2019 to 42.5 billion last year, leading to widespread losses among film companies while executives continue to receive high salaries [1] Salary Discrepancies - Wanda's Chen Zhixi has a salary of 10.17 million, attributed to her successful project management despite the company's overall losses of 940 million last year [3][6] - In contrast, Huayi Brothers' Wang Zhonglei earns 2.2 million, a significant reduction of 45.92% from the previous year, reflecting the company's ongoing financial struggles [9][10] - Light Media's Wang Changtian receives 1.02 million, which is considered low given his role and the company's successful projects [12][14] - China Film's Fu Ruoqing earns 833,300, which is surprisingly low for a top producer, despite overseeing numerous successful projects [16] - Bona's Yu Dong has a salary of 806,400, which has decreased by 24.05% due to the company's declining performance [18][19] - Jin Yi's Li Xiaowen earns 374,300, which is low compared to industry standards, reflecting the company's focus on film distribution rather than production [21] Industry Challenges - The overall film industry is facing a "cold winter," with many films failing to turn a profit and executives' high salaries raising questions about fairness [1][6] - The disparity in salaries among executives within the same company highlights the challenges and inconsistencies in the industry [8]

Core Insights - The film industry in 2024 faces multiple challenges, with total box office revenue in China dropping to 42.502 billion yuan, a year-on-year decrease of 22.7%, and total audience numbers falling to 1.01 billion, down 23.1% [1][8] - There is a notable disparity in executive compensation among film companies, with 10 out of 16 listed companies reporting a decline in total executive pay, while 11 companies saw an increase in average executive compensation [1][3] - Wanda Film stands out with a reported loss of 940 million yuan in 2024, yet its chairman, Chen Xi, received a salary of 10.1725 million yuan, the highest among executives in the sector [1][6][7] Industry Overview - The overall film industry is experiencing a downturn, with significant declines in box office performance and audience engagement [1][8] - The average executive compensation in Wanda Film is the highest at 2.0563 million yuan, followed by Mango Super Media and others [1][8] Executive Compensation Analysis - Wanda Film's total executive compensation reached 34.9575 million yuan in 2024, a 53.9% increase from 22.717 million yuan in 2023 [3][6] - Despite the overall decline in executive pay across the industry, the average compensation for executives in many companies has increased, indicating a potential concentration of higher salaries among fewer individuals [8][9] - Notably, only three executives in the industry received over 4 million yuan, with the majority earning between 1 million and 3 million yuan [9][12] Company-Specific Insights - Wanda Film's revenue for 2024 was approximately 12.362 billion yuan, a decrease of 15.44% year-on-year, with a significant drop in box office revenue from its cinemas [7][8] - Other companies like Mango Super Media and Huayi Brothers also reported declines in executive compensation, with Mango Super Media's total executive pay falling by 27.9% [6][12] - The film industry is witnessing a trend where high-level executives are receiving substantial pay despite overall company losses, highlighting a growing divide in compensation structures [8][9]

Investment Rating - Investment rating: Buy (maintained) [2] Core Views - The company reported strong performance in Q1 2025, with a revenue of 4.709 billion yuan, representing a year-over-year increase of 23.23%, and a net profit of 830 million yuan, up 154.72% year-over-year [5][9] - The company maintained its leading market share, with Q1 2025 box office revenue from domestic theaters reaching 3.42 billion yuan, a 44.9% increase year-over-year [6] - The company is expanding its IP layout, with significant box office contributions from films such as "Detective Chinatown 1900" and "Boonie Bears: Rebooting the Future" [7] Financial Performance - In 2024, the company achieved a total revenue of 12.362 billion yuan, a decrease of 15.44% year-over-year, and a net loss of 940 million yuan [5][12] - For 2025E, the company is expected to generate revenues of 15.009 billion yuan, with a projected net profit of 1.217 billion yuan [12][14] - The company’s gross margin is expected to improve to 28.9% in 2025E from 22.5% in 2024A [12][14] Box Office and Audience Metrics - In 2024, the total box office in China was 42.502 billion yuan, down 22.7% from 2023, with total ticket sales of 1.01 billion, a decrease of 22.3% [5] - In Q1 2025, the national box office reached 24.388 billion yuan, a 49.1% increase compared to the same period in 2024, with ticket sales of 520 million, up 42.9% year-over-year [5][6] IP Development and Future Projects - The company is actively developing its IP portfolio, with films like "Detective Chinatown" series achieving cumulative box office of over 12.3 billion yuan [7] - The company has a rich pipeline of upcoming films, including titles like "A Cloud Like You" and "Strange Tales: Lanruo Temple" [8] Revenue Projections - The company is projected to achieve revenues of 15.009 billion yuan in 2025E, 16.234 billion yuan in 2026E, and 17.226 billion yuan in 2027E [12][14] - The expected net profit for 2025E is 1.217 billion yuan, increasing to 1.481 billion yuan in 2026E and 1.723 billion yuan in 2027E [12][14]

Investment Rating - The report maintains a "Buy" rating for Wanda Film [1][10][11] Core Views - Wanda Film is focusing on cash investments and strategic partnerships to strengthen its IP derivative business, particularly through collaboration with 52TOYS [2][6][7] - The company is expected to enhance its non-ticket revenue and investment returns by deepening the operation of its IP industry chain [7][10] - The company has a rich pipeline of films, TV series, and games, which is anticipated to drive future growth [7][10] Financial Performance - The current stock price is 10.64 CNY, with a market capitalization of approximately 22.47 billion CNY [4] - Revenue projections for 2024, 2025, 2026, and 2027 are 12.36 billion CNY, 16.33 billion CNY, 18.34 billion CNY, and 19.67 billion CNY respectively, with corresponding net profits of -940 million CNY, 1.20 billion CNY, 1.49 billion CNY, and 1.74 billion CNY [9][10] - The company is expected to achieve a return on equity (ROE) of 15% by 2025, with a projected price-to-earnings (P/E) ratio of 18.66 for 2025 [10][11] Strategic Initiatives - The company plans to invest 82.29 million CNY to acquire a 4% stake in Lezi Tiancheng, a leading toy company, and collaborate on IP toy product development [6][10] - Wanda Film aims to launch various product lines, including blind boxes and transformable toys, while also developing original IPs and collaborating with well-known international IPs [7][10]

Core Viewpoint - Wanda Film's subsidiary, Beijing Yingshiguang E-commerce Co., Ltd., plans to acquire a 7% stake in Beijing Lezitiancheng Cultural Development Co., Ltd. for a total consideration of 144 million yuan, indicating a strategic shift towards the "Guzi Economy" and targeting the younger market [1][2][3] Group 1: Investment Details - The investment involves Yingshiguang subscribing to 3.69% of shares for 68.99 million yuan and Ru Yi Xing Chen subscribing to 2.77% for 51.74 million yuan, along with additional shares totaling 1.44 billion yuan [1] - The estimated valuation of Lezitiancheng is approximately 4.29 billion yuan based on new registered capital, and about 1.87 billion yuan based on share transfer valuation [1] Group 2: Market Context - The "Guzi Economy" is closely linked to the younger demographic, with Lezitiancheng's core brand, 52TOYS, being a leading player in this sector [2][6] - The film industry is experiencing a decline in box office revenues, prompting companies like Wanda to explore non-box office income sources, such as IP derivative products [3][4] Group 3: Financial Performance - Wanda Film reported a revenue of 12.36 billion yuan in 2024, but faced a net loss exceeding 900 million yuan, reflecting a 203.05% decline year-on-year [3][4] - In Q1 2025, Wanda Film's net profit rebounded to 830 million yuan, driven by a successful film release [3] Group 4: Strategic Shift - The investment in 52TOYS aligns with Wanda's strategy to enhance revenue stability by diversifying income sources beyond traditional box office earnings [5][11] - Wanda has initiated the "Shiguangli" brand to enhance cinema space utilization and has opened 30 art shops nationwide, contributing significantly to non-box office revenue [5][11] Group 5: Industry Trends - Other film companies, such as Hengdian Film and Light Media, are also investing in the "Guzi Economy," indicating a broader industry trend towards IP licensing and derivative product development [9][15] - The potential for growth in the IP derivative market is evident, with significant pre-sale figures for products linked to popular films, showcasing the increasing consumer interest [11][13]