Core view
China Film Co.Ltd(600977) the cumulative box office of the Spring Festival (2.1-2.6) exceeded 6 billion, about 1 / 4 less than the total box office of the Spring Festival in 2021. The winner of the box office is “shuimen bridge of Changjin Lake”, with a box office of more than 2.5 billion and a Douban score of 7.2. The average ticket price of the top six films at the box office exceeded 50 yuan, and the average ticket price on the first day of the schedule was as high as 56 yuan, up 14% from last year. Due to the shrinking supply of films in the whole market and the release of head films in the Spring Festival, cinemas and distributors are more dependent on the contribution of the box office of the Spring Festival to the annual revenue. At the same time, the low attendance rate caused by the epidemic has compressed the profit space of cinemas, and the increase of ticket prices is in line with market expectations, but the audience’s acceptance of the increase has become a problem. In addition to the high ticket prices, the head films of the 2022 Spring Festival are lack of box office dark horse and phenomenal IP, and the network popularity is also diverted by the topics related to the Winter Olympics. The attendance rate of top 2 films is significantly lower than that of last year. In the spring of 2022, China Film Co.Ltd(600977) market is still lack of heavy film support, which is expected to remain in a depressed state. Pay attention to the recovery progress of Hollywood film supply. Focus on: Beijing Enlight Media Co.Ltd(300251) (Valentine’s Day file “ten years of warm words”), and China Film Co.Ltd(600977) (imported film “tragedy on the Nile”). The social popularity of the Beijing Winter Olympic Games remains high, the commercial value around the event is prominent, and the national sports enthusiasm is high, which is conducive to the subject matter of sports marketing, IP licensed products, ultra-high definition video transmission and other related subjects. Tianjin Ruixin Technology Co.Ltd(300828) , Guanghui Logistics Co.Ltd(600603) recommended: Tianjin Jieqiang Power Equipment Co.Ltd(300875) .
Risk warning: covid-19 epidemic prevention and control; Required consumer price; China’s regulatory policy; Overseas Internet market policy.
Market performance review: CITIC media index rose or fell – 9.69% in the whole week before the festival, and did not outperform Shanghai Composite Index, Shenzhen Composite Index and gem index, ranking 30th among 30 CITIC primary industries. From the perspective of subdivided industries, other advertising and marketing sectors performed best, with CITIC’s tertiary industry index up or down – 5.91%, followed by film and television and animation sectors.
Industry highlights: the trademark applications of xiaohongshu yuancosmos, iqiyi adventure yuancosmos and tantantanyuancosmos were rejected for review| SARFT issued the production specification of TV drama master| The Spring Festival Gala officially settled in wechat video number and tried vertical screen live broadcasting for the first time| Tencent, Youku, iqiyi and BiliBili announced the launch of classic American drama friends| Unity acquired ziva dynamics, a developer of virtual human technology| The Korean platform bought the remake right of “redundant son-in-law”| Tencent accepted the 9.17% premium of Hengteng network to issue 64 million additional shares and continued to cooperate in games and film and television| Netease launched the world’s first AI music creation Netease cloud sound| Tencent released the real machine demonstration of avatar MMO shooting mobile game| The producers of “Ru long” series, Yue Renyang and nagoshi studio, a new studio of SASO, were established with full investment from Netease|
