Wanda Films (002739) Annual Report 2018 Review: Box Office Growth Higher than National Average

Wanda Films (002739) Annual Report 2018 Review: Box Office Growth Higher than National Average

Key Investment Events: The company released its 2018 annual report, with revenue of 140 in 2018.

88 ppm, a six-year increase of 6.

49%, net profit attributable to mother 12.

95 ppm, a reduction of 14 per year.

58%, net profit after returning to the mother is 11.

29 ppm, a ten-year average of 8.


The company’s domestic box office growth rate was 13%, exceeding the national box office growth rate.

The company achieved box office 95 in 2018.

60,000 yuan, an annual increase of 8.

9%, the number of visitors 2

300 million person-times, an increase of 7 in ten years.


Of which domestic box office 79.

80,000 yuan, an increase of 13% in ten years, the number of moviegoers2.

100 million person-times, an annual increase of 12%, surpassing the domestic 9 in 2018.

1% box office growth and 5.

9% of the audience increased.

Overseas Box Office 15.

800 million US dollars, an annual increase of 3.

7%, the number of visitors was 2219.

90,000 person-times.

Five years of growth.


The company’s theater continued to expand and the industry entered an adjustment period.

As of the end of 2018, the company had 595 direct-operated theaters with 5,279 screens, of which 541 were direct-operated theaters in China 南宁桑拿 and 4,807 screens, a continuous growth16.

3%, slightly lower than the national screen number 18.

3% growth rate (6 national screens in 2018.

10,000 yuan); 54 overseas theaters, 472 screens, an increase of 8%.

Against the background of the poor box office growth in Q1 in 2018 and 2019, the number of theaters with poor management and closed doors has increased significantly compared with previous years, and the inflection point for industry adjustment has now arrived.

We expect that in the future, Wanda Films will maintain its expansion plan of 80-100 self-built theaters each year, and its market share will continue to increase.

Open up the industry chain, leapfrog and upgrade to pan-entertainment platform companies, and build the film industry ecology.

The company plans to acquire Wanda Television 96 for 10.5 billion.

77% equity, the plan has been conditionally approved by the CSRC.

After the completion of the acquisition, the company will open up the industry chain and maximize content value.

The company’s 100 million + member ecosystem and the country’s first number of its own cinemas will invest in Wanda Film’s film and television production, and the game business will have a good synergy effect, creating flexibility and expectations.

Profit forecast: Wanda Television promises net profit for 2019-2021.

8.8 billion, 10.6.9 billion, 12.

7.4 billion US dollars, excluding the completion of mergers and acquisitions, we expect the company’s net profit in 2019-202013.

4.6 billion, 15.

6.2 billion, 17.

500,000 yuan, corresponding to April 25, 2019 is estimated to be 32/28/25 times.

After considering the completion of the merger, the pro forma net profit was 22.

3.4 billion, 26.

310,000 yuan, 30.

210,000 yuan, corresponding to 23/19/17 times of April 25, 2019.

Risk Warning: The box office is less than expected, the risk of goodwill impairment, and performance commitments cannot be achieved.