Core Viewpoint - Cat's Eye Entertainment (01896) reported a strong performance in its interim results, with total revenue of 2.472 billion yuan, a year-on-year increase of 13.9%, and a net profit of 179 million yuan, indicating robust growth in the film distribution sector [1] Financial Performance - Total revenue for the first half of the year reached 2.472 billion yuan, reflecting a 13.9% year-on-year growth [1] - Net profit for the period was 179 million yuan, while the adjusted net profit stood at 235 million yuan [1] Film Distribution - Cat's Eye participated in the distribution and production of 29 domestic films and 9 imported films during the first half of the year [1] - The company had a record high of 24 films under its direct control for distribution [1] - Cat's Eye was involved in four out of the top five domestic films by box office revenue during the first half of the year [1] IP Business Development - The interim report highlighted a significant focus on IP business, with the successful collaboration on "The King's Avatar: For the Glory" [1] - The company plans to deeply engage in high-profile game IP films and popular domestic animation IP films, expanding its content offerings in anime IP, celebrity IP, and film-related merchandise [1] - According to CITIC Securities, the company is currently experimenting with operations to accumulate experience, with future potential for scaling and systematic development in film IP operations [1]

Group 1 - The core viewpoint of the articles highlights the growth in ticketing revenue driven by the film market and the expansion of the performance business, with Cat Eye Entertainment achieving a revenue of 2.47 billion, a year-on-year increase of 14% [1] - The online entertainment ticketing business generated 1.18 billion, reflecting a year-on-year growth of 13%, supported by a strong film market during the Spring Festival, which saw a box office of 29.2 billion, up 23% year-on-year [1] - The performance ticketing segment has seen significant growth, with the company providing ticketing services for major artists and events, and a 300% year-on-year increase in overseas performance GMV [1] Group 2 - The entertainment content service revenue reached 1.21 billion, a year-on-year increase of 18%, with the company controlling the distribution of 24 films, marking a historical high [2] - The company is actively exploring IP business layouts, having developed several IPs and collaborating with external IPs, while also having a rich pipeline of upcoming films [2] - The net profit for the first half of 2025 was 178 million, a year-on-year decrease of 37%, primarily due to a decline in gross margin, which was 38%, down 15 percentage points year-on-year [2] Group 3 - The company is expected to achieve revenues of 4.601 billion, 5.33 billion, and 5.837 billion from 2025 to 2027, with adjustments of -4%, -2%, and -2% respectively [3] - The forecasted net profit for the same period is 359 million, 561 million, and 668 million, with adjustments of -37%, -20%, and -21% respectively, mainly due to continued investment in the performance business and underperformance of some content [3] - The current valuation multiples are projected at 25x, 16x, and 13x for the years 2025 to 2027, maintaining an "outperform" rating [3]

Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The film market recovery has driven ticketing revenue growth, with the company achieving a revenue of 2.47 billion, a year-on-year increase of 14%. The online entertainment ticketing business generated 1.18 billion, up 13% year-on-year. The film market benefited from the Spring Festival blockbusters, achieving a box office of 29.2 billion, a 23% increase year-on-year, with 641 million admissions, up 17% year-on-year [1][8] - The company has a solid position in film distribution, with a rich pipeline of upcoming films. In the first half of 2025, the entertainment content service revenue reached 1.21 billion, an 18% year-on-year increase. The company controlled the distribution of 24 films and developed 4 films, both historical highs. The company is also actively exploring IP business layouts [2][9] - The company's net profit for the first half of 2025 was 178 million, a 37% year-on-year decrease, primarily due to a decline in gross margin. The gross margin for the first half of 2025 was 38%, down 15 percentage points year-on-year, influenced by increased investments in the performance business and underperforming film projects [2][9] Summary by Sections Financial Performance - In the first half of 2025, the company achieved a revenue of 2.47 billion, with ticketing revenue contributing 1.18 billion. The film market's box office reached 29.2 billion, with a 23% year-on-year increase. The company’s net profit was 178 million, down 37% year-on-year, with a non-GAAP net profit of 235 million, down 33% year-on-year [1][2][8] Future Projections - The company is projected to achieve revenues of 4.601 billion, 5.330 billion, and 5.837 billion for 2025, 2026, and 2027 respectively, with adjustments of -4%, -2%, and -2%. The net profit is expected to be 359 million, 561 million, and 668 million for the same years, with adjustments of -37%, -20%, and -21% [3][15] Strategic Focus - The company is focusing on expanding its performance business, with significant growth in local performances and overseas markets. The gross merchandise volume (GMV) for local performances has increased by over 80%, and overseas performance GMV has increased by 300% year-on-year [1][2][8]

Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The film market recovery has driven ticketing revenue growth, with the company achieving a revenue of 2.47 billion, a year-on-year increase of 14%. The online entertainment ticketing business generated 1.18 billion, up 13% year-on-year. The film market benefited from the Spring Festival blockbusters, achieving a box office of 29.2 billion, a 23% increase year-on-year, with 641 million attendees, up 17% year-on-year [1][8] - The company has a robust pipeline of films, controlling the distribution of 24 films and developing 4 films independently, both historical highs. The company has maintained a top-two box office position during the Spring Festival for five consecutive years [2][9] - The company is actively exploring IP business layouts around film content, having developed IPs like "Panda Plan" and "Time's Son," and collaborating with external IPs [2][9] Summary by Sections Financial Performance - In H1 2025, the company achieved a net profit of 178 million, a decrease of 37% year-on-year, in line with previous forecasts. The non-GAAP net profit was 235 million, down 33% year-on-year, primarily due to a decline in gross margin [2][9] - The gross margin for H1 2025 was 38%, down 15 percentage points year-on-year, mainly due to increased investments in the performance business and underperformance of certain film projects [2][9] Revenue and Profit Forecast - The company is projected to achieve revenues of 4.601 billion, 5.330 billion, and 5.837 billion for 2025, 2026, and 2027 respectively, with adjustments of -4%, -2%, and -2%. The forecast for net profit attributable to shareholders is 359 million, 561 million, and 668 million for the same years, with adjustments of -37%, -20%, and -21% [3][15] - The current valuation corresponds to P/E ratios of 25x, 16x, and 13x for the respective years [3][15] Market Position and Strategy - The company continues to enhance its competitive edge in the performance business, which has become a primary strategy, with significant growth in local performances and overseas markets [1][8] - The company is also expanding its ticketing services for major artists and events, with a notable increase in gross merchandise value (GMV) for local performances exceeding 80% and overseas performance GMV increasing by 300% year-on-year [1][8]