Hengdian Film and Television (603103): Net profit attributable to mother decreased by 15 as well.

8% Studio City New Speed Temporary

Hengdian Film and Television (603103): Net profit attributable to mother decreased by 15 as well.

8% Studio City New Speed Temporary

Core point of view: 19Q1 operating income fell 6 year-on-year.

17% to 8.

7.4 billion; net profit attributable to mothers decreased by 15.

76% to 1.

5.9 billion; net profit after deducting non-attribution decreased by 22.

78% to 1.


In the first quarter of 2019, the income of movie voting houses also fell by 10%, and the single screen continued to decline.

2019Q1 Hengdian Film Project achieved box office (excluding service fee) 6.

71 trillion, a 10% decline in one year, accounting for 3% of the total box office.

9%, a slight decline of 0 a year.

03%; 19.39 million person-times of gradual film visits, with an increase of 13.


Single screen effect 32.

56 million / block, a decrease of 21 per year.


The gradual improvement of the single screen led to the weakening of profitability, and the total cost during the period was less than 3%.

Affected by the drop in the single store screen in Hengdian, Q1 gross margin decreased by 4.

58pct to 28.

44%, net interest rate fell by 2.

07pct to 18.


In terms of period expenses, Q1 sales expenses were 1442.

480,000 yuan (YOY-6%), the sales expense ratio is 1.

65% is the same as the same period last year; administrative expenses are 1094.

340,000 yuan (YOY-26%), the management expense ratio fell by 0.

34 points 深圳桑拿网 to 1.

25%; financial expenses 58.

670,000 yuan (YOY-44%), and the financial expense ratio decreased by 0 year-on-year.

05pct to 0.


The total expense ratio for the three periods is 2.

91%, a reduction of 0 per year.

38 points.

Government subsidies increased, and non-operating income increased significantly by 275 every year.
5% to 657.
80,000 yuan.

The acceleration rate of new cinemas has increased by more than 90% below the third line, and the low-line strategy has been continuously implemented.

According to Yien data, January 1, 2019?
On March 31, the number of new cinemas in Hengdian Film Studio increased from 16 to 332, with the number of new cinemas decreasing by 27.

3%, the number of new screens from 97 to 2093, the number of new construction decreased by 30.


Among them, 3?
There are 15 new theaters in Tier 5 cities, accounting for 93.


Investment suggestion: We believe that the characteristics of “high self-employment, deep sinking, and stable expansion” of Hengdian Film & TV stand out in the era of post-channel expansion, and be able to fully enjoy the low-line cinema market ‘s first-mover advantage to fully enjoy the low-line movie market growth dividend, long-term investment logic, butIn the short term, it still faces the pressure of fluctuations in box office growth and rapid cost growth.

We expected 19?
Net profit attributable to mother for 21 years is 3.

2.7 billion, 3.

63 ppm and 4.

12 trillion, corresponding to PE is 30.

4x / 27.

4x / 24.

1x, reasonable value 27.

40 yuan / share, maintaining the “overweight” rating.

Risk warning: intensified competition in theaters; box office growth is slower than expected; compensation for downhill or stop.