Enlight Media(300251) 华创证券·2024-11-04 10:10Investment Rating - The report maintains a "Recommend" rating for the company, with a target price of 10.8 RMB [1][3] Core Views - Q3 performance was below expectations due to investment losses, with revenue of 108 million RMB (YoY -68%) and a net loss attributable to the parent company of 12 million RMB (YoY -107%) [1] - The company has a rich pipeline of upcoming films, including "Nezha 2," "Little Qian," and "The Seventeenth Article," which are expected to drive future performance [1] - AI technology is expected to enhance the efficiency of animation film production and amplify the value of the company's IP portfolio, including "Nezha," "Jiang Ziya," and "Big Fish & Begonia" [1] Financial Performance - 24Q3 revenue was 108 million RMB, a 68% YoY decrease, with a net loss attributable to the parent company of 12 million RMB (YoY -107%) [1] - The company's 2024/25/26 net profit attributable to the parent company is forecasted to be 565/1,058/1,191 million RMB, with YoY growth rates of 35%/87%/13% [1] - The current stock price corresponds to a PE ratio of 44/24/21 for 2024/25/26 [1] Product Pipeline - Q4 2024 will see the release of several films, including "Qiao Yan's Heart" (expected box office of 152 million RMB) and "Sheng Quan Zai Wo" [1] - In 2025, the company plans to release animated films such as "Nezha 2," "Little Qian," and "The Starry Sky of the Three Kingdoms," as well as live-action films like "The Seventeenth Article" and "Three-Body" [1] Valuation - The target market capitalization is 31.73 billion RMB, with a target price of 10.8 RMB, based on a 2025 PE ratio of 30x [1] - Comparable companies include Bona Film Group, Wanda Film, and China Film, with a focus on relative valuation [1] Industry Insights - AI is expected to significantly improve the efficiency of animation film production, potentially increasing the company's production capacity and enhancing the value of its IP portfolio [1]