WANDA FILM(002739) Soochow Securities·2024-11-04 16:30Investment Rating - The report maintains a "Buy" rating for Wanda Film [1] Core Views - The company reported a Q3 revenue of 3.628 billion yuan, a year-on-year decline of 18.98%, with a net profit attributable to shareholders of 55 million yuan, down 92.01% year-on-year [2] - The domestic film market is under pressure, with a significant drop in box office revenue due to fewer blockbuster films during the summer season, leading to a 43.8% year-on-year decline in national box office to 10.86 billion yuan in Q3 [2][3] - The company is actively diversifying its non-box office revenue streams through innovative marketing and collaborations with popular IPs, such as the partnership with the game "Genshin Impact" [3] - The content business has shown breakthroughs, with several films released in Q3 achieving good returns, and a strong pipeline of upcoming films expected to contribute positively in 2025 [4] Financial Forecasts and Valuation - The company's revenue forecast for 2024 is adjusted to 13.158 billion yuan, with net profit estimates revised down to 178.65 million yuan, reflecting a significant decrease compared to previous estimates [4] - The projected P/E ratios for 2024-2026 are 144, 26, and 21 times respectively, indicating a cautious outlook for the near term but potential for recovery in the following years [4]