SFC(SH:601595) Tianfeng Securities·2024-04-25 06:30Investment Rating - The report provides a positive outlook on the company's performance, indicating a potential investment opportunity in the film distribution and cinema sectors [17]. Core Insights - The film industry is experiencing a significant recovery in box office performance, with an increase in industry concentration as major players gain market share [3][4]. - The company is well-positioned to benefit from the ongoing trend of consolidation within the industry, as it holds a leading position among cinema chains [3]. - The projected total box office for 2024 is estimated to be between 580 billion to 613 billion yuan, reflecting a positive sentiment towards the industry's growth [5]. Summary by Sections Industry Overview - The film industry has seen a notable recovery in box office revenues, with the top five cinema chains accounting for 48.49% of total box office revenue, an increase of 2.88 percentage points compared to pre-pandemic levels [3]. - The number of cinema chains in China has decreased to 49 by the end of 2023, down from 51 in 2022, indicating a trend of industry consolidation [3]. Box Office Performance - During the 2024 Spring Festival period, the cumulative box office reached 8.051 billion yuan, representing a year-on-year growth of 19.01% [4]. - The average ticket price for 2023 was 51.8 yuan, which is 22.75% higher than the national average [12]. Company Performance - The company's cinema chain achieved a box office of 4.483 billion yuan in 2023, marking a year-on-year growth of 105.90% [15]. - The number of franchise cinemas has steadily increased, with 796 franchise cinemas reported in 2023, up from 769 in 2022 [15]. IP and Licensing - The company has a diverse portfolio of IPs, including classic animations and films, which are expected to drive revenue growth through licensing and merchandise sales [35][66]. - The company has established a strong presence in the IP licensing market, with a total GMV exceeding 1 billion yuan in 2023 [52]. Future Outlook - The report anticipates a continued increase in box office revenues and cinema attendance, with projections for 2024 indicating a rise in total box office to approximately 580-613 billion yuan [5]. - The company is expected to leverage its strong IP portfolio and cinema network to enhance its market position and revenue streams in the coming years [22][66].