万达电影：院线板块承压，H2内容板块增长可期

Investment Rating - The report maintains a "Buy" rating for the company, expecting a significant price increase in the next 6-12 months [2][4]. Core Views - The company reported a revenue of 6.22 billion RMB for H1 2024, a decrease of 9.5% year-on-year, and a net profit attributable to shareholders of 110 million RMB, down 73.2% [1][2]. - The cinema segment faced pressure due to weak box office performance in Q2, while the gaming business showed strong growth, with a 100.2% increase in revenue [2]. - The report anticipates continued pressure on the cinema segment in Q3, but expects growth in the content segment in the second half of the year [2]. Summary by Sections Performance Review - H1 2024 revenue was 6.22 billion RMB, down 9.5% year-on-year; net profit attributable to shareholders was 110 million RMB, down 73.2% [1]. - Q2 revenue was 2.4 billion RMB, a decrease of 23.0% year-on-year, with a net loss of 210 million RMB compared to a profit of 110 million RMB in the same period last year [1]. Operational Analysis - Revenue breakdown: - Cinema revenue was 3.64 billion RMB, down 10.0% year-on-year - Merchandise and catering sales were 810 million RMB, down 17.3% - Advertising revenue was 590 million RMB, down 3.6% - Game publishing revenue was 330 million RMB, up 100.2% [2]. - The cinema segment's Q2 box office decreased by 28.7%, attributed to a lack of supply and competition from tourism and concerts [2]. - The report highlights that the content segment's profitability remains stable, with a gross margin of 46.5% for film production and distribution, up 15.8 percentage points year-on-year [2]. Future Outlook - The cinema segment is expected to face challenges in Q3 due to a lackluster summer box office, with July and August 2024 box office down approximately 7 billion RMB year-on-year [2]. - Upcoming films and series are anticipated to support performance in the content segment, with several titles set to release in H2 2024 [2]. - The report projects net profits for 2024-2026 to be 580 million RMB, 1.22 billion RMB, and 1.48 billion RMB, respectively, with corresponding P/E ratios of 36.9, 17.5, and 14.4 [2][4].