中国电影：H1业绩承压，行业偏弱影响

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 10.80 [1][2] Core Views - The company's H1 performance is under pressure due to a weak industry environment, with a significant decline in revenue and net profit compared to the previous year [2][3] - The report anticipates a gradual recovery in the industry starting from 2025, driven by an increase in quality content supply [2][10] Financial Performance Summary - For H1 2024, the company reported revenue of RMB 2.12 billion, a year-over-year decrease of 25.72%, and a net profit of RMB 204 million, down 43.30% [2][3] - The film market's overall performance was poor, with national box office revenue at RMB 23.8 billion, a decline of 9.51% [3][10] - The company's major business segments also saw revenue declines: - Creative segment revenue decreased by 57.6% to RMB 279 million - Distribution segment revenue fell by 29.8% to RMB 898 million - Exhibition segment revenue dropped by 11.6% to RMB 474 million [3][4] Margin and Cost Analysis - The overall gross margin for H1 2024 was 25.93%, down 1.65 percentage points, primarily due to poor market performance [4] - The distribution segment's gross margin improved by 4.6 percentage points to 37.2%, while the creative and exhibition segments saw declines in gross margins [4] Future Projects and Expectations - The company has a rich pipeline of upcoming projects, including "The Legend of the Condor Heroes: The Great Hero" and "Volunteer Army 2," which are expected to contribute positively to future earnings [5][10] - The report highlights the company's focus on original content development and strategic resource allocation to enhance both the scale and quality of its productions [5][10] Earnings Forecast Adjustments - The earnings forecasts for 2024-2026 have been adjusted downward due to the anticipated weak performance of the national film industry [10][11] - The revised net profit estimates for 2024, 2025, and 2026 are RMB 565 million, RMB 999 million, and RMB 1.036 billion, respectively [10][11]