Depth-Company-Beijing Culture (000802): Main business development is stable and high-quality movies promote the company’s ranking in the industry

Depth * Company * Beijing Culture (000802): The main business development is stable and the fine film pushes the company into the front line of the industry

The company released its 2018 annual report and achieved operating income12.

0.5 billion, a decrease of 8 per year.

7
8%, net profit attributable to shareholders of the parent company.

26 ppm, a ten-year increase4.

99%, net profit attributable to shareholders of the parent company after 杭州桑拿 deduction.

1 ppm, a 10-year increase of 3.

27%.

The company’s overall business development is stable in 2018, and it has launched box office and word-of-mouth high-quality boutique projects such as “I’m Not a Medicine God” and “Anonymous”. We believe that the company’s production and distribution capabilities have ranked among the first-line in the industry, maintaining the company’s buy rating.
The main points supporting the film and television business performance is stable, the blockbuster movies have achieved a good harvest at the box office and word of mouth.

During the reporting period, the company’s film business realized operating income5.

16 ppm, an increase of 0 in ten years.

47% of TV dramas and online dramas business achieved operating income5.

18 ppm, a six-year increase of 6.

84%.

Among them, the films “I’m Not the Medicine God” and “The Unknowns” produced and released by the company created a box office and word of mouth harvest, reflecting the company’s comprehensive and unique film production and distribution capabilities.

The income of artist brokers has improved, and there is no income contribution from variety shows.

The number of reports is affected by industry policies and other factors. The company’s business has been adjusted, but the cultivation speed of artists has been continuously improved, but the artist brokerage business has shrunk to achieve zero revenue.

76 trillion, with a ten-year average of 44.

65%; meanwhile, compared with the same period of last year, the company has no variety business income.

Therefore, the corresponding decrease in operating income was mainly adjusted by the contraction of artist brokerage business and variety business.

Tourism and hotel services are in a smooth transition.

The report reports that the company’s tourism scenic spot business realized zero operating income.

85 ‰, a decrease of 4 per year.

75%.

Tantuo Temple and Jietai Temple Scenic Area are currently in the transition management stage (2016.

7
1-2019.

5,

31) If the operation ceases in the second half of 2019, the long-term revenue and profit impact of the company is expected to be small.

In addition, combining the brand and traffic advantages in the company’s film and television culture field, the tourism business team has carried out various attempts and explorations. In the future, the synergies of multiple sectors will definitely create a more stable source of revenue for the company.

The main risks faced by ratings are that movies and TV drama revenues are not up to expectations, and major policy changes have taken place.

It is estimated that the company will already have two movies called “ Crazy Call ” and “ Wandering Earth ” in 2019. The box office of “ Wandering Earth ” exceeds 4.6 billion U.S. dollars, which is expected to improve the company’s profitability; assuming that the company’s other businesses are operating stably, the profit forecast is slightly reducedIt is expected that the company will achieve 0 profit in 2019-2021.

56, 0.

64 and 0.

72 yuan, corresponding to the current continuous market surplus reduced by 24 times, 21 times and 19 times, maintaining the company’s buy rating.