The 203rd issue of the research value group [unraveling new high stocks] series.
Jessica, Literature and Research Value Group
Editorial Value Group Jessica
On December 13th,Wanda Films（002739.SZ) 10cm daily limit, closed at 1370 yuan shares, with a market value of 27.1 billion yuan.
Change of actual controller
On December 12, Wanda Film announced that the company recently received a notice that Wang Jianlin, the actual controller of Beijing Wanda Cultural Industry Group and its wholly-owned subsidiary, Beijing Hengrun Enterprise Management and Development Co., Ltd., intends to hold 8% and 12% equity interest (51% equity interest in Wanda Investment) was transferred to Shanghai Ruyi Investment Management***The total transfer price is 215.5 billion yuan
After this transaction, the controlling shareholder of the company is still Wanda Investment, and Ruyi Investment holds 51% of the equity of Wanda Investment. Ruyi Investment is a wholly-owned company owned by Ke Liming, and Ke Liming indirectly controls 20% of the equity of Wanda Film through Ruyi InvestmentThe actual controller of the company will be changed to Ke Liming
After this transaction, Wang Jianlin indirectly controlled Wanda Film 10 through Wanda Culture Group, Shenxian Rongzhi Xingye Management Consulting Center (Limited Partnership), and Lin Ning9% equity.
The two parties reached an agreement that the remaining term of the lease contract between Dalian Wanda Commercial Management Group and Wanda Film shall not be less than 10 years from 2024, and can be extended for another 10 years after expiration, and priority cooperation will be given in the future under the same conditions. In addition, after the completion of the equity transaction, Wanda Film-related brands can continue to be used.
The above-mentioned agreement fully guarantees the smooth transition of the change of the actual controller of Wanda Film, and effectively reduces the related business risks caused by the equity transfer.
According to the disclosure, China Ruyi's main business sectors are film and television drama production business, **stream business and game business in the upstream of the media industry. Among them, film and television content production is the core business composition of China Ruyi, and it will control films in 2023"Exchanging Lives", "Keep You Safe" and "Warm" have all won good audience reputation and box office, and the films produced and distributed from January to June have achieved a total box office of 546.2 billion yuan
Wanda Film said that after the equity transfer is reached, on the basis of maintaining the stable operation of the main business, it will combine the resource advantages and business layout of shareholders to achieve resource sharing and complementary advantages, actively play a synergistic effect, fully expand the efficiency of profit growth, and further enhance the market competitiveness and sustainable development ability of listed companies.
The recovery of the projection business is better than the industry
Wanda Film's main business is cinema investment and construction, cinema film distribution, cinema film screening and related derivative businesses, and the main business income comes from film box office revenue, sales revenue and advertising revenue.
In 2023, the box office revenue and attendance of its downstream cinema screening business will achieve rapid growth. Wanda Films' domestic theaters achieved a box office of 62200 million yuan (excluding service fees), a year-on-year increase of 676%；The number of moviegoers is 1500 million, a year-on-year increase of 687%，The overall performance is better than the industry average
Since the epidemic, in order to reduce the scale of investment and alleviate operating pressure, Wanda Film has slowed down the construction of asset-heavy theaters, closed down some theaters with poor operating efficiency, launched the franchise model, and continued to promote the transformation of asset-light. In 2022, the company closed 33 directly-operated theaters and opened 65 new asset-light theaters. As of the end of the third quarter of 2023,The company has 709 directly-operated theaters and 168 asset-light theaters, an increase of 1 and 19 respectively compared with the end of the second quarter.
Wanda's asset-light business model avoids large-scale capital investment, and at the same time allows theaters to achieve the effect of unified theater management and services under pure asset linkage, empowering theater operations, and is expected to steadily increase the company's management revenue and market share.
In terms of film investment and production, in the first three quarters of 2023, Wanda participated in the box office performance of films such as "The Wandering Earth 2", "Bear Infested: Bear Core with Me", "All or Nothing", "Warm", among them"The Wandering Earth 2" and "All or Nothing" ranked first in the total box office list of movies in 202.
2. 3rd place
In terms of film reserves, the crime film "The Three Teams", which is mainly invested and controlled by Wanda, has been scheduled for December 15, and the content of the film is based on real events, with strong social and emotional attributes, and is expected to contribute to performance flexibility after it is launched. In addition, the companyThere are also many films such as "I Don't Want to Be Friends with You", "Looking for Him", "Ghost Blowing the Lantern: Celestial Astrology" and so on
In the first three quarters of 2023, Wanda Film achieved an operating income of 1134.8 billion yuan, a year-on-year increase of 4698%；Net profit attributable to parent company 111.5 billion yuan, a year-on-year turnaround;Deduct non-net profit of 110.4 billion yuan,Year-on-year turnaround
Dongguan** said that the box office recovery of the domestic film market in 2023 will directly drive the recovery of the revenue of the screening end, and Wanda Films, as the leading cinema chain, has obvious advantages and greater performance flexibility. At the same time, the company's content reserves are relatively rich, and it is expected to provide support for the company's performance growth as high-quality films are launched one after another. It is estimated that the EPS from 2023 to 2024 will be68 yuan.
Risk Warning: Policy Regulatory Risk;The risk that the supply of high-quality films is less than expected;The risk that the demand for watching movies is less than expected.
This column is only a review of the value group, and any views and ** mentioned are examples only, and are not trading advice. **There are risks and investment should be cautious.