The results of 56 media stocks in the first half of the year are impressive. The rebound of the media sector kicked off.

The entire media sector has seen a significant recovery last week. For example, Huayi Brothers, one of the old leaders in the GEM market, experienced a significant surge in volume on July 25, which led to a number of media stocks bottoming out.

Original title: 56 media stocks mid-year reports are celebrating the "Wolf Warrior 2" hit, stimulated by the long-silent media stocks to welcome the east wind?

Against the background of the overall sector rebound, the performance of media stocks in the first half of the year was also remarkable. In the second quarter, funds also consciously began to increase their holdings of media stocks. After the valuation returns, will media stocks have new performance with the help of performance?

Released on the 7th, with box office exceeding 1.5 billion yuan,"Wolf Warrior 2" finally won a victory for the depressed domestic film market. Yesterday, Beijing Culture, as the bottom guarantee for "Wolf Warrior 2", closed the daily limit with a "one-word" board. Even Light Media, which issued an announcement on Monday afternoon, once rose more than 9 points.

However, putting aside the factor of "Wolf Warrior 2", in fact, the entire media sector has seen a significant recovery last week. For example, Huayi Brothers, one of the old leaders in the GEM market, experienced a significant surge in volume on July 25, which led to a number of media stocks bottoming out. Against the background of the overall sector rebound, the performance of media stocks in the first half of the year was also remarkable. In the second quarter, funds also consciously began to increase their holdings of media stocks. After the valuation returns, will media stocks have new performance with the help of performance?

The rebound in the media sector kicked off.

As the overall decline in A-shares in 2016, the performance of media stocks in the first half of 2017 was very weak. The stock prices of film companies such as Enlight Media, Shanghai Film, and Huayi Brothers all suffered greatly. The stock price performance of TV drama companies such as Huace Film and Television, Ciwen Media, and Huanrui Century also rarely improved.

But last week, the media sector showed a significant rebound, like "a rainy day after a long drought."

Huayi Brothers, which is listed on the first echelon of the GEM, experienced a surge in volume last Tuesday, which led to a number of media stocks bottoming out. Huayi Brothers 'weekly gain (July 24-July 28) also reached 13.54%, which is the largest weekly gain in the stock in a year.

Huayi Brothers (July 24-July 28) Weekly gains.

This week, driven by "Wolf Warrior 2", Beijing Culture's daily limit for two consecutive days, continuing to drive the performance of the entire media sector.

It is worth mentioning that the recovery of the film and television sector is not unrelated to the outstanding overall performance of media stocks.

According to statistics from Wind Information, as of July 31, 84 stocks in the Shenwan Media sector announced first-half performance forecasts, of which 56 stocks achieved year-on-year gains, accounting for 66.67%. Among them, there are 4 companies that forecast a change in net profit of more than 200% in the first half of the year. In addition to the restructuring factor *ST Zixue's expected net profit to increase by 1,186.37% year-on-year, Beijing Culture expects net profit to increase by 292.61% year-on-year, and Zhongnan Culture expects net profit to increase by 250% year-on-year, and Beiwei Communication's net profit in the first half of the year is expected to increase by 245.26% year-on-year. There are 15 companies that are expected to increase their net profit by more than 100% in the first half of the year, including Tianshen Entertainment, Dongfang Network, etc.

The performance of each sector in the first half of the year was seriously divided

. In the first-half performance forecast of media stocks, each sub-sector was seriously divided, and the performance of game stocks remained firm. For example, Kunlun Wanwei's net profit for the first half of the year, which has disclosed its semi-annual report, was 384 million yuan, a year-on-year increase of 57.52%; Sanqi Mutual Entertainment expects its net profit to increase by 81.07% in the first half of the year; Perfect World expects its net profit to increase by 80.52% in the first half of the year; Youzu Network expects its net profit to increase by 80% in the first half of the year.

▲ Kunlun Wanwei's 2017 Semi-annual Report

▲ Sanqi Mutual Entertainment's 2017 First Quarter Report

▲ Perfect World reported that the performance of listed film companies in the first quarter of 2017

was relatively flat. Enlight Media and Wanda Film (002739.SZ) respectively forecast net profit growth in the first half of the year. At 30% and 20% respectively, while Huayi Brothers, which performed poorly last year, expected performance to grow by 30% to 60% in the first half of the year, and expected profit of 394 million yuan to 484 million yuan."Wrestling! "Dad" has made a significant contribution to the company's performance.

▲ "Wrestling! On

the other hand, the performance of listed companies in the TV drama sector seems to be unsatisfactory. The net profits of Ciwen Media, Happy Blue Ocean, Hualu Baina, and Huanrui Century all experienced negative growth year-on-year. Among them, Huanrui Century predicts a net profit loss of 37 million yuan to 39 million yuan in the first half of the year, which is a "big change" compared with last year's performance; only Tangde Film and Television, Huace Film and Television, etc. have increased.

However, regarding the poor performance of the TV drama company, Ma Zhongjun, chairman of Ciwen Media, explained in an interview with the media: The first quarterly report and the mid-term report often reflect the results of projects carried out from June to September of the previous year, while the results of relatively large film and television dramas can only be reflected in the third quarterly report or even the fourth quarterly report of that year. Therefore, only the annual report can more truly reflect the company's annual operations.

Valuations return to the increase in funds in the second quarter.

Interestingly, although media stocks performed lackluster in the second quarter, funds have always been one of the main forces in the market, and their positions have also revealed to a large extent the future hot spots and the trend of the broader market. Judging from the disclosure information in the fund's second quarterly report, media stocks are the second largest industry in which the fund has increased its holdings after household appliances.

Disclosure from the fund's second quarterly report shows that the fund has newly increased its holdings of 51 media stocks in this period, accounting for 40.8% of the industry's constituent stocks, ranking second among the 28 Shenwan-level industries. Among them, Focus Media, Leo Shares, Youzu Network, Perfect World, Oriental Pearl, Halo New Network, Sanqi Mutual Entertainment and other funds obtained in this period increased their holdings by more than 10 million shares.

Compared with the performance in the first half of the year, most of the media stocks that the fund newly increased in the second quarter performed relatively well.

The Horizon Securities Research Report shows that from a valuation perspective, the current PE (TTM) of the cultural media sector is 33.6, which continues to fall sharply from 44.9 at the end of last year and is close to the historical bottom. From a performance perspective, although the overall growth rate of the industry declined, there was still a growth rate of 41.6% in the first quarter, and the semi-annual report forecast still showed a growth rate of 28.5%, while some industry segments maintained stronger growth rates.

Editor: Mary