Investment Rating - The report assigns a "Buy" rating for the company, China Ruyi [8]. Core Views - The company has successfully expanded its business from books to film and now to gaming, demonstrating a diversified development strategy [8]. - China Ruyi has strong capabilities in producing and investing in film content, which has been validated by historical data on TV drama popularity and box office performance [8]. - The gaming business is expected to see explosive growth in 2024, with significant revenue increases anticipated from new game launches and a robust product pipeline [8]. Summary by Sections Business Development Stages - Since its establishment in 2009, the company has gone through three development phases: 1. From 2009 to 2013, it focused on acquiring popular book IPs to lay the foundation for film production [12]. 2. From 2013 to 2020, it expanded into the film market, successfully producing several high-grossing films [12]. 3. From 2021 to present, it has extended its business downstream by launching an online streaming platform and acquiring cinema assets, while also venturing into gaming [12][29]. Film Business - The company excels in creating and identifying blockbuster content, supported by over a decade of experience in the industry [8]. - It has established a strong competitive edge through its content production capabilities, which are crucial in the "content is king" era [32]. Gaming Business - The gaming segment is projected to experience significant growth, with revenues reaching 4.46 billion RMB in 2023, marking a year-on-year increase of over 700% [8]. - The company has a solid partnership with Tencent, which provides a strong foundation for its gaming operations [8]. Financial Projections - Revenue forecasts for China Ruyi are 5.73 billion RMB in 2024, 7.02 billion RMB in 2025, and 8.16 billion RMB in 2026, driven by new film and game releases [8]. - The adjusted net profit is expected to be 794 million RMB in 2024, 1.99 billion RMB in 2025, and 2.36 billion RMB in 2026 [8].
中国儒意：影视内容能力为基，游戏业务爆发式增长