The Spring Festival period stimulates the growth of the film and television sector and will rebound after the festival

The Spring Festival period achieved good box office results. Some analysts said that the box office of the Spring Festival period strongly proves the stable and healthy development momentum of my country's film market. After the holiday, the film, television and animation sector, especially the stocks of listed companies related to the movies released during the Spring Festival period, There is a good opportunity to rebound and deserves close attention.​

Original title: The Spring Festival season stimulates the film and television sector. Four beneficiary stocks will become the big winners of the New Year. The Spring Festival

season has gathered 10 domestic films and has lived up to expectations and achieved good box office results. According to data, the cumulative box office nationwide on the first day of the Spring Festival on the first day of the New Year is approximately 804 million yuan, which significantly exceeds the 640 million yuan on the first day of the Spring Festival in 2016. During the fifth day of the New Year from January 28 to February 1, the cumulative box office nationwide has also reached 2.854 billion yuan, which is very likely to exceed the box office record of 3.4 billion yuan for the Spring Festival in 2016.

In this regard, analysts said that after more than half a year of depression, the strong return of the box office during the Spring Festival period strongly proves the stable and healthy development momentum of my country's film market. After the holiday, the film, television and animation sector, especially those related to the Spring Festival period, have a good opportunity to rebound and deserve close attention.

In fact, my country's film market has developed rapidly in recent years, and watching movies has gradually become one of the important family entertainment consumption methods during the Spring Festival, and the box office revenue during the Spring Festival has also become a microcosm of the box office situation throughout the year. Among them, Zhongtai Securities said that from the monthly box office data, January and February, where the Spring Festival stalls are located, have gradually shouldered the heavy responsibility of the box office for the whole year. In 2011, the box office in February, where the Spring Festival stalls are located, was 1.087 billion yuan, accounting for the total of 2011. 8%, and by 2016, with the 3.3 billion yuan explosion of "Mermaid", the proportion reached more than 15%.

It is worth mentioning that some analysts believe that after the Spring Festival holiday, the 2016 annual report disclosure progress in the A-share market will gradually accelerate, and the overall high prosperity of the film, television and animation industry will also increase expectations for the overall strength of the sector's market outlook. According to statistics from the Securities Daily's Market Research Center, among the 23 listed companies in the film, television and animation industry, 22 companies have disclosed their 2016 annual report performance forecasts, of which 20 companies are expected to be happy, accounting for 90.9%. Among them, Xingmei United expects its net profit for this reporting period to increase by 229.72 times year-on-year. In addition, Perfect World (770.28%), Wanjia Culture (400.00%), Cultural Investment Holdings (306.34%), Huawei Culture (200.00%), Dongfang Network (181.08%) and other companies are expected to double their performance in the current period, while Dasheng Culture is also expected to make substantial profits while turning losses in the current period.

In terms of investment strategy, analysts generally believe that opportunities in the short-term film, television and animation sector will be concentrated in individual stocks closely related to the Spring Festival release of films. According to the data, the five films with the best performance at the box office during the Spring Festival this year are the five films with the best performance at the box office during the Spring Festival. Among them, Wentou Holdings and Light Media are production companies of Kung Fu Yoga and Big Indian Troubles respectively. In addition, New Culture Hong Kong, a wholly-owned subsidiary of New Culture, and related party Young&Young(New Culture Chairman Yang Zhenhua holds 100% equity) jointly invested in PDAL, which is 100% owned by Zhou Xingchi. After the investment is completed, New Culture Hong Kong holds 40% equity in PDAL, and Young&Young holds 11% equity, which is expected to benefit from the box sold well sales of Journey to the West to the Demon.

In addition to the above three film and television companies, Wanda Cinema is also one of the beneficiaries of the Spring Festival box office sold well in the eyes of major institutions. Among them, Zhongtai Securities said that the number of Spring Festival stalls in 2017 reached a new record, with content including Stephen Chow, Wang Baoqiang, Deng Chao and other big box office players all appearing. The box office during the Spring Festival is expected to show a large month-on-month growth, boosting market sentiment. As a leading company, Wanda Cinema will be the first to benefit. The company's current expected valuation in 2017 is less than 30 times, which has entered the value range and deserves special attention.

Editor: vian