中国电影回到聚光灯下.pdfVIP

Equity Research Report Media March 2019 By: Gary Guo (S1700517120002) and Jing Han (S1705518080001) China Cinema Initiate coverage: Back in the spotlight China’s big cinema chains are poised for a period of sustained growth. We forecast that box office revenue will rise at a CAGR of 11.8% over 2019-21e The market leaders that are increasing their reach across the value chain should benefit most Initiate coverage of three cinema chains – Wanda Film (Buy), Hengdian Entertainment (Buy) and Shanghai Film (Hold) – and upgrade China Film to Buy from Hold Disclosures Disclaimer: This report must be read with the disclosures and the analyst certifications in the Disclosure appendix, and with the Disclaimer, which forms part of it. Equities ● Media March 2019 Why read this report  China’s film industry is on the rise again, which is good news for the country’s big cinema chains; we forecast box office revenue will rise at a CAGR of 11.8% over 2019-21e  Smaller cinemas are losing money, so industry consolidation is inevitable; the industry leaders are also increasing their reach across the value chain  Initiate coverage of three cinema chains – Wanda Film (Buy), Hengdian Entertainment (Buy) and Shanghai Film (Hold) – and upgrade China Film to Buy from Hold; prefer Wanda Film 1