WANDA FILM(SZ:002739) Huaan Securities·2025-05-15 10:33Investment Rating - Investment rating: Buy (maintained) [2] Core Views - The company reported strong performance in Q1 2025, with a revenue of 4.709 billion yuan, representing a year-over-year increase of 23.23%, and a net profit of 830 million yuan, up 154.72% year-over-year [5][9] - The company maintained its leading market share, with Q1 2025 box office revenue from domestic theaters reaching 3.42 billion yuan, a 44.9% increase year-over-year [6] - The company is expanding its IP layout, with significant box office contributions from films such as "Detective Chinatown 1900" and "Boonie Bears: Rebooting the Future" [7] Financial Performance - In 2024, the company achieved a total revenue of 12.362 billion yuan, a decrease of 15.44% year-over-year, and a net loss of 940 million yuan [5][12] - For 2025E, the company is expected to generate revenues of 15.009 billion yuan, with a projected net profit of 1.217 billion yuan [12][14] - The company’s gross margin is expected to improve to 28.9% in 2025E from 22.5% in 2024A [12][14] Box Office and Audience Metrics - In 2024, the total box office in China was 42.502 billion yuan, down 22.7% from 2023, with total ticket sales of 1.01 billion, a decrease of 22.3% [5] - In Q1 2025, the national box office reached 24.388 billion yuan, a 49.1% increase compared to the same period in 2024, with ticket sales of 520 million, up 42.9% year-over-year [5][6] IP Development and Future Projects - The company is actively developing its IP portfolio, with films like "Detective Chinatown" series achieving cumulative box office of over 12.3 billion yuan [7] - The company has a rich pipeline of upcoming films, including titles like "A Cloud Like You" and "Strange Tales: Lanruo Temple" [8] Revenue Projections - The company is projected to achieve revenues of 15.009 billion yuan in 2025E, 16.234 billion yuan in 2026E, and 17.226 billion yuan in 2027E [12][14] - The expected net profit for 2025E is 1.217 billion yuan, increasing to 1.481 billion yuan in 2026E and 1.723 billion yuan in 2027E [12][14]