Enlight Media(SZ:300251) Haitong Securities·2024-04-26 10:32Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][9] Core Views - The film market is experiencing a strong recovery, leading to improved operations for the company. In 2023, total revenue reached 1.55 billion yuan, a year-on-year increase of 105%. Investment income was 61.45 million yuan, up 192% year-on-year, primarily from investments in Maoyan Entertainment and Huasheng Lingchuang. The net profit attributable to the parent company was 420 million yuan, a staggering increase of 1596% year-on-year, with a non-recurring net profit of 390 million yuan, up 149% year-on-year. Operating cash flow turned positive with a net amount of 640 million yuan, and a cash dividend of 0.7 yuan was distributed for every 10 shares [6][7][9]. Summary by Sections Financial Performance - In 2023, the company's film business revenue was 1.29 billion yuan, a year-on-year increase of 116.8%, accounting for 83.2% of total revenue, with a gross margin of 41.02%, up 27.9 percentage points year-on-year. The total box office for films released during the reporting period was approximately 8.46 billion yuan, with key films contributing significantly to revenue [7][10]. - For Q1 2024, total revenue was 1.07 billion yuan, a year-on-year increase of 159%, driven by the high box office of the Spring Festival film "The Twentieth Article." The net profit attributable to the parent company was 420 million yuan, up 248% year-on-year [7][10]. Future Outlook - The company has a rich pipeline of films and series for 2024, including several projects expected to be released within the year. The animation film sector is highlighted as a core advantage, with plans to leverage AI technology for content production [7][9][10]. - Revenue projections for 2024-2026 indicate significant growth, with total revenue expected to reach 2.87 billion yuan in 2024, 3.27 billion yuan in 2025, and 3.73 billion yuan in 2026, reflecting year-on-year growth rates of 85.6%, 14.0%, and 14.2% respectively [8][10][13]. Valuation - The company is valued using both PE and PB methods. The estimated reasonable value range for the stock is between 10.44 yuan and 12.18 yuan per share, based on a PE valuation of 30-35 times for 2024 [9][11].