Citigroup published a research report that pointed out that Maoyan Entertainment (01896) has an attractive valuation and is rated as "Buy" with a target price of RMB 18, which means that compared with yesterday's closing price of RMB 12.12, it still has the potential to rise by about 49%.
Citigroup reported that the year-to-date movie box office has beaten expectations, and the box office for the whole year is believed to have a mid-single-digit growth. It is estimated that there will be surprises at the box office of the Lunar New Year. Maoyan Entertainment's movie distribution and online ticket sales will become new growth drivers.
Citi continued to point out that Maoyan Entertainment is actively engaged in the content service business. The group has established the status of a leading distributor and co-producer, and is negotiating with three other film companies, including "Detective Chinatown 3" and "Chinese Women's Volleyball Team". "And "Jiang Ziya", the active content service business also brings more opportunities for the advertising business.
Citi believes that about 95% of Maoyan’s business comes from the performance of the film industry, so it is expected that the box office should represent revenue growth. As subsidies continue to decrease, profit margins are expected to continue to grow. New businesses including film distribution and online entertainment ticketing have become Maoyan's new growth drivers.
*Editor's note: This article is for reference only and does not constitute an offer, solicitation or invitation, inducement, any representation of any kind or form, or the conclusion of any suggestions and recommendations. Readers are advised to use their own independent thinking ability to make investment decisions on their own , If losses are incurred due to related suggestions, it has nothing to do with the "Economic News Service", the editor and the author.
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