Tang De Film and Television is close to Huayi Brothers 'valuation and Fan Bingbing makes a big profit on their shares at a 60% discount.

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After the holiday, Tangde Film and Television experienced five one-word daily limits, with its share price reaching 5,297 yuan, a market value of 42.4 billion yuan, and a P/E ratio of 49.4 times, close to Huayi Brothers 'valuation of 53.3 times. Compared with established film and television stocks such as Huayi and Light, the rising star Tang De is worth looking forward to, but it is still young.

After the opening of the festival, Tangde Film and Television experienced five one-word trading, with a share price of 52.97 yuan, a market capitalization of 4.24 billion, and a price-to-earnings ratio of 49.4 times, close to the valuation level of Huayi Brothers. Compared with Huayi, light and other established film and television stocks, the rising star Tang de is worth looking forward to, but it is still immature.

original title: Tang de has not yet landed, Fan Bingbing still needs to work hard

the last trading day before the Spring Festival (February 17). Tangde Film and Television stood out from a crowd of IPO competitors such as Hairun Film and Television, Datang brilliant, Energy Film and Television, and Blue Sea of Happiness, and took the lead in listing and trading on the gem. On the same day, its shares rose 44% from the offering price of 22.83 yuan, reaching the upper limit on the first day of the IPO. After the opening of the festival, Tangde Film and Television experienced five one-word trading, with a share price of 52.97 yuan, a market capitalization of 4.24 billion, and a price-to-earnings ratio of 49.4 times, close to the valuation level of Huayi Brothers.

compared with established film and television stocks such as Huayi and Light, the rising star Tangde is worth looking forward to, but it is still immature. Stars such as Fan Bingbing, Zhao Wei and Zhang Fengyi (with a market capitalization of 68.33 million yuan, 61.97 million yuan and 30.19 million yuan respectively) also have to work with listed companies.

the way of capital expansion of Tangde Film and Television

in September 2006, Wu Hongliang, Liu Zhaochen and Zhao Jian (brother of Zhao Wei) jointly contributed 1 million yuan to establish Dongyang Tangde Film and Television production Co., Ltd. Three years later, in 2009, Tangde Limited increased its capital to 25 million yuan and introduced Li Zhao, the deputy manager, as the new shareholder. Since then, the original shareholders have transferred shares to core employees such as Wang Daqing and Zhang Zhe at the original price.

the real capital operation began in 2010.

first of all, following the principles of straightening out equity relations, avoiding inter-industry competition and reducing related party transactions, Tangde Film has wholly acquired four companies, including Tangde Media, Tangde Film, Longyuan Advertising and Dongyang Dingshi.

this was followed by a further increase in registered capital to 30.7 million and Wu Hongliang's equity ratio to 64 per cent in December 2010. At the same time, the undistributed profits accumulated on the books will be divided by 25 million yuan.

followed by two foreign capital increases in the first half of 2011:

in January 2011, Ruishi growth accounted for 23.1 million of the expanded equity, while Xiangle Technology accounted for 10 million of the expanded equity. Based on this, Tang de is estimated to be valued at 230 million (post-money).

in April 2011, five performers, including Fan Bingbing, Zhao Wei, Zhang Fengyi, Huo Jianqi and Sheng Heyu, and two investment institutions Dingshi Yuanquan and Dingshi Ruizhi invested a total of 13.8 million, accounting for 10% of the enlarged share capital, with a corresponding valuation of 138 million.

after two capital increases in January and April 2011, Tangde's registered capital reached 39.8164 million, and Wu Hongliang's shareholding was diluted to 49.39%.

finally, in June 2011, Tangde Co., Ltd. was transformed into a joint stock limited company with a share capital of 60 million yuan. Wu Hongliang holds 29.63 million shares, accounting for 49.39%; Zhao Jian holds 6.4 million shares, accounting for 10.67%; Fan Bingbing and Zhao Wei hold 1.29 million shares and 1.17 million shares respectively.

about a year and a half before and after, Tangde Film and Television optimized its equity and business structure, completed its listing and restructuring, and made its capital operation clean and clean.

in February 2015, Tangde Film and Television issued 20 million new shares on Shenzhen gem, with a total share capital of 80 million. The net profit per share and net assets are 0.99 yuan and 5.77 yuan respectively. The issue price is 22.83 yuan, the corresponding price-to-earnings ratio is 22.96 times, the price-to-book ratio is 3.96 times, and the net capital raised is 418 million yuan.

Why do stars such as Fan Bingbing and Zhao Wei buy shares at a "40% discount"

through the capital increase in April 2011, Tangde Film and Television introduced well-known artist shareholders such as Fan Bingbing, Zhao Wei and Zhang Fengyi, and wrote a win-win example of artists taking a stake in the film and television company again after Huayi Brothers.

some financial media said that "Fan Bingbing only bought 800000 shares that year" was a misreading. According to relevant documents, Fan Bingbing contributed 2.967 million, of which 856000 was included in the new registered capital and 2.111 million in the capital accumulation fund.

two capital increases with a difference of 3 months, the latter valuation is 40% lower than the previous one. With regard to such a wide gap, Tang explained that Fan Bingbing, Zhao Wei and Zhang Fengyi became contracted actors; Huo Jianqi was the contracted director; Sheng Heyu was the contracted screenwriter; Dingshi Source was funded by Tang Degao and its core staff. Dingshi Ruizhi was set up by other contracted writers, directors and actors (Weizi, Qixing, Zhang Meng, Teng Wenji, etc.). Tang de Film and Television believes that the above-mentioned people "value the company differently from external financial investors." And when this capital increase, the operating performance of Tangde Limited did not meet the expectations at the beginning of the year. Therefore, in view of the differences in the identity and background of the two new shareholders in 2011, the price difference between the two capital increases is reasonable, and there is no improper benefit transfer. "

although it is a bit far-fetched, it at least gives the stars a reason to buy shares at a "40% discount". In terms of effect, the value brought by Fan Bingbing and other five artists is not only 13.8 million of the investment, but at least 1 billion of Tangde's valuation of more than 4 billion is brought by the halo of the stars.

single business structure

the core business of Tangde Film and Television is the investment, production and distribution of TV dramas. In 2014, TV series business revenue of 375 million, accounting for 92% of the total revenue, other income is negligible.

TV series production is a fully competitive industry. According to the statistics of the State Administration of Radio, Film and Television, as of April 2013, there were 146institutions holding "TV series production licenses" and 6175 "radio and television program production and operation licenses". Among more than 6000 institutions, the status of Tangde Film and Television is neither prominent nor stable. In the first six months of 2014, there was no sign of Tang de in the producers of the top 10 TV stations and online broadcasts.

. The network broadcast unit is ten thousand times)

Tangde Film and Television not only has a gap with industry leaders such as Huayi and Huatze, but also has no advantages compared with many small partners such as Xinli, Hairun, Economic and Television, Qiansheng, and so on.

the Legend of Wu Meiniang was bought out by Hunan Satellite TV and Letv at a high price, and created the myth of viewing and broadcasting. But this plot, shooting aspects of the "slot" of the hit drama is not a boutique, the more crucial question is whether Tang de can continue the "legend".

another important source of revenue for Tangde Film and Television is the video website. Since 2007, the price of network communication rights for a single episode of TV series has increased from 3000 yuan to more than 1 million yuan. But the era of video websites frantically spending money to buy copyright has long passed, and the price of TV series broadcast on the Internet has been stagnant in recent years. The proportion of Tangde film and television network communication rights to TV series business income is stagnant, at 23.2%, 18.3% and 22.1% in 2012, 2013 and 2014, respectively.

in order to realize the diversification of business structure, at least it should be worthy of this "film" in "Film and Television". Tang de has been committed to expanding the film business. But of the 12 films disclosed in the IPO document, only Xiao Hong was produced by Tang de Film and Television as an executive producer. For the other 11 films, Tang de's role is only as a financial investor. Tang de made a total gross profit of 53.81 million yuan from the 12 films, with an average of 4.48 million yuan each, while Xiao Hong, an executive producer, lost 10.14 million yuan.

it seems that the threshold of movies is much higher than that of TV dramas. Tangde Film and Television is still a long way from the veritable "Film and Television Company", and the situation of a single business structure is difficult to change in a short time.

impatience leads to bad financial situation

between 2006 and 2011, without a steady and pragmatic attitude, Tangde Film and Television could not survive and develop, nor could it attract investment from Fan Bingbing and Zhao Wei. However, after the completion of the restructuring in 2011, Tangde Film and Television's eagerness to go public was fully exposed.

in 2012, 2013 and 2014, the net profit was 56.11 million yuan, 63.65 million yuan and 86.71 million yuan respectively, but the net cash flow generated by operating activities was negative 100 million yuan, negative 45.01 million yuan and negative 69.04 million yuan respectively.

the video website is depressed, the TV station is too strong, and the accounts receivable of Tangde Film and Television are accumulating more and more. TV series business revenue in 2014 was 375 million yuan, and accounts receivable at the end of the year was 340 million (35.09% of total assets), an increase of 110 million over the end of 2013! To make matters worse, 94.428 million of the 340 million receivables are more than one year old.

in addition to accounts receivable, Tangde Movie and Television has a big burden, that is, inventory. What is the inventory of the film and television company? It is a work that is being produced and has been completed but failed to pass the review or has not been sold. At the end of 2014, the net value of Tangde film and television inventory after deducting the provision for falling prices reached 398 million (about 44 per cent of total assets), an increase of 59.44 per cent year-on-year.

Cash flow from operating activities continues to be negative, with 79% of total assets being inventory and accounts receivable. With the listing of more than 400 billion yuan, the financial situation will be greatly improved, but the listed companies and the stars can not relax their efforts, because Tangde Film and Television has not yet landed.