WANDA FILM(002739) 国海证券·2024-09-05 14:30Investment Rating - The report maintains a "Buy" rating for Wanda Film [1] Core Views - The company's performance in H1 2024 was impacted by a weak film market, leading to a decline in revenue and net profit [2][3] - Despite the challenges, the company is focusing on optimizing cinema operations and expanding merchandise sales, which are expected to contribute positively in the future [5][7] Financial Summary - In H1 2024, Wanda Film reported revenue of 6.218 billion yuan, a year-over-year decrease of 9.48%, and a net profit of 113 million yuan, down 73.18% [2][3] - The company's net profit margin was 1.88%, down 4.34 percentage points year-over-year, while the gross margin was 26.08%, down 2.18 percentage points [3] - Operating cash flow for H1 2024 was 537 million yuan, a significant decrease of 77.59% year-over-year, primarily due to increased investments in content [3] Business Segments - Cinema operations generated 3.639 billion yuan in revenue in H1 2024, a decline of 9.96% year-over-year, with a gross margin of 2.46% [5] - Merchandise sales reached 813 million yuan, down 17.25% year-over-year, with a gross margin of 60.96% [6] - The gaming segment saw revenue of 331 million yuan, a year-over-year increase of 100.19%, driven by successful game launches [7] Future Outlook - The report forecasts revenue growth for the company, estimating revenues of 14.192 billion yuan, 16.494 billion yuan, and 17.866 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 604 million yuan, 1.363 billion yuan, and 1.607 billion yuan [7][9] - The company aims to increase its market share in the cinema industry to 20% and is actively working on enhancing its content offerings [5][7]