\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 977 China Film Co.Ltd(600977) )
Event: China Film Co.Ltd(600977) released the performance express for 2021. With the gradual and effective control of the epidemic, the company's operation has improved significantly compared with that in 2020. The annual film revenue is about 5.8 billion, an increase of 97% year-on-year, and the net profit attributable to the parent is about 240 million, which is significantly improved compared with the loss of 560 million in 2020. After deduction, the company's net profit is about 90 million, Compared with the loss of about 680 million in the same period in 2020, it also shows an overall good situation.
Excellent film and television production ability. Since 2021, the company has gradually increased investment in the production of film and television content, with remarkable results: in 2021, the company participated in the production and release of 24 films of all kinds, with a cumulative box office of nearly 24 billion, accounting for more than 60% of the whole country, and the market share has increased by 27% and 42% respectively compared with 2020 and 2019. The proportion of the company's investment films in the box office of the national film market has increased, which shows the company's excellent control over film and television projects. With the company's continued overweight in this business, the market share is expected to be further improved in the future.
The issuance advantage was further highlighted. In 2021, the company participated in the distribution of 711 films, with a box office of about 32.9 billion, accounting for 77% of the national box office in the same period, and the market share increased by 27% and 34% respectively compared with 2020 and 2019 China Film Co.Ltd(600977) as the largest film and television content distribution group in China, with the gradual control of the epidemic, the company's market competitive advantage has been further reflected.
Optimize the cinema structure. In 2021, the company had 138 direct cinemas and 1048 screens, which remained stable compared with 140 in 2020. We believe that the cinema industry has entered a mature stage, and the early development stage of "horse racing enclosure" has ended. At present, it has entered a stage of improving the overall operation quality of the cinema China Film Co.Ltd(600977) while maintaining the stability of the overall scale of the cinema, it began to gradually adjust and optimize the cinema structure, which is expected to improve the overall operating efficiency of the cinema in the future.
Profit forecast and investment suggestions. According to the company's 2021 performance express, it is estimated that the company's EPS from 2021 to 2023 will be 0.13 yuan, 0.46 yuan and 0.55 yuan respectively, and the corresponding PE will be 91 times, 25 times and 21 times respectively. Considering that the epidemic situation has basically improved, the market competitiveness of leading companies will be further highlighted, and the recovery of the epidemic situation is expected to drive the recovery of imported films. We maintain the investment rating of China Film Co.Ltd(600977) "buy".
Risk warning: the risk that the duration of the epidemic exceeds the expected risk and the risk of national policy adjustment.
