The overall performance of the GEM fell, the overall market value of the media sector fell by more than 120 billion yuan

In the first half of 2017, the overall performance growth rate of the A-share GEM declined, with the media sector particularly serious, continuing the decline in the first quarter, and the performance and valuation of many companies fell.

Original title: GEM media companies reported nearly 50% of their semi-annual reports and expected market value to shrink by more than 20%

. In the first half of 2017, the overall performance growth rate of the A-share GEM declined. Among them, the media sector was particularly serious, continuing the decline in the first quarter. Many companies 'performance and valuation fell. As of July 17, nearly 50% of the 36 GEM media companies forecast a year-on-year decline in net profit in this year's interim report. Among them, Le.com and Quantong Education reported losses for the first time since their listing. The valuation levels of 27 GEM media companies have declined to varying degrees, while the valuation level of the entire media industry is close to the low level in 2014.

Under pressure on performance, the trend of individual stocks in the industry is generally sluggish. Among the GEM media sector, only the sub-new shares of Xuanya International, which was listed in 2017, had a positive annual increase, while other companies all fell. Among them, Storm Group, Tianlong Group, and Happy Blue Ocean have fallen nearly 50% this year, and the net profit of these three companies is forecast to decline in the first half of the year. It is worth mentioning that since 2017, the overall market value of the GEM media sector has dropped by more than 120 billion yuan, shrinking by more than 20%.

Star Company's performance fell short of expectations and was an important reason for the decline in the overall performance growth rate of the media industry. LeE.com's first-half performance forecast loss exceeded 600 million yuan; Palm Technology's first-half net profit forecast drop by 20% to 50%; Orient Fortune expects its first-half performance to fall by 10.93% to 34.68% year-on-year; Shunwang Technology's net profit during the period is expected to drop by 0% to 20%.

In terms of industries, the film, television and animation sector in the sub-industries performed slightly better, with 4 of the 6 film, television and animation companies on the GEM showing an increase in performance. Among them are private film and television giant companies Enlight Media and Huayi Brothers. However, the shares of the two companies have fallen 18.89% and 26.92% respectively this year. Although Enlight Media's profit fell slightly in the first quarter, its results in the second quarter increased significantly. The year-on-year growth in profit in the quarter is expected to exceed 55%. In the first half of the year, it is expected to increase by 10% to 30% year-on-year, and its profit is 354 million yuan to 418 million yuan. During the period, the company participated in the investment, distribution and inclusion of a total of 7 films in the mid-year box office, with a total box office of 1.383 billion yuan. The film business income increased compared with the same period last year, but the profit decreased slightly compared with the same period last year. In addition, Enlight Media's TV drama revenue in the first half of the year will increase significantly year-on-year.

Huayi Brothers expects a profit of 394 million to 484 million yuan in the first half of the year, a year-on-year increase of 30% to 60%. Among them, the net non-recurring gains and losses in the first half of this year was approximately 339 million yuan, compared with 233 million yuan in the same period last year. The non-recurring profits and losses for the period mainly consisted of government subsidies and incentives, investment income from the sale of part of Yinhan Technology, payment of taxes payable on the sale of part of Beijing Zhangqu Technology Co., Ltd., and other non-operating income and expenses. In addition, the company revealed that Feng Xiaogang's film project "Fanghua" is in production and is expected to be released during the National Day 2017. In addition, Tangde Film and Television and Huace Film and Television also expect growth in their performance in the first half of the year. Analysts at Zhongtai Securities believe that film and television companies are affected by industry characteristics, and most of their profits will be confirmed in the second half of the year. The performance of leading companies is highly certain and is expected to usher in performance release in the second half of the year.

The overall mid-term performance of the Internet information service sector was slightly weaker, and 6 of the 10 Internet information service companies on the GEM had negative net profit growth. Among them, LeTV, 35th Internet, Oriental Fortune, Storm Group, Shunwang Technology, and 365th all forecast a decline in performance.

Editor: Mary