WANDA FILM(SZ:002739) Guotai Junan Securities·2024-05-06 02:33Investment Rating - The investment rating for Wanda Film is "Buy" with a target price of 18.52 CNY, maintaining the previous rating of "Buy" [1][2]. Core Views - The report highlights that the peak movie season is approaching, with key projects expected to be released successively. The performance of the film content segment is anticipated to be gradually released [1]. - The core focus is on the collaboration between Wanda and Ru Yi, with expectations for significant box office contributions from upcoming films [1][2]. Financial Summary - In 2023, Wanda Film achieved operating revenue of 14.62 billion CNY, a 50.8% increase year-on-year, and a net profit attributable to shareholders of 912 million CNY, marking a return to profitability [1][2]. - The first quarter of 2024 is projected to have an EPS of 0.15 CNY, with annual EPS forecasts for 2024, 2025, and 2026 at 0.69 CNY, 0.81 CNY, and 0.93 CNY respectively [1][2]. - The company’s market share in the domestic cinema sector is reported at 16.5%, with a slight increase of 0.2 percentage points [1]. Operational Highlights - The number of cinemas opened by Wanda Film increased to 929 by the end of 2023, with 708 being directly operated cinemas [1]. - The report notes that the box office performance is significantly influenced by the overall market conditions, with Wanda Film's cinema business being particularly sensitive to box office trends [1][2]. Future Outlook - The report maintains the EPS forecasts for 2024 and beyond, indicating confidence in the company's recovery and growth trajectory [1][2]. - The anticipated releases during the May Day and Dragon Boat Festival periods are expected to bolster revenue and profitability [1].