China's capital market is about to usher in a blowout of cinema line stocks

China's capital market is about to usher in a blowout in cinema line stocks. April 21 and 22nd, China Securities Regulatory Commission issued a series of second and third batch of IPO pre-disclosure list, of which Wanda Cinema Line Co., Ltd. (referred to as "Wanda Hospital Line") and Canton Golden Yi Film and Television Media Co., Ltd. ("Guangzhou Golden Yi") listed, as the following shadow shares, Another two are only listed on the IPO pre-disclosure list of cinema line stocks.

who will become the first Chinese hospital line? is becoming one of the most hotly discussed topics in the capital market. On the scale, Guangzhou Jin Yi 2013 ranked the 6th place in the country, the annual box office amount of 1.541 billion yuan, far less than Wanda and shadow. And the "Love and Hate" of the Wanda Line and shadow shares, little is known: Before 10, Wanda Group, with its dream of cinema, had been keen to join its cinema business to the Shadow group's Shanghai joint Hospital line, but the two sides had opted to split up due to disagreements over business interests.





Since then, Wang decided to devote himself to operating Wanda Hospital line, and relying on Wanda Group commercial real estate projects rapidly in the national replication expansion, 10 years later, Wanda Hospital line and shadow shares both went to the capital market crossroads. According to the statistical information provided by the arts consulting, the 2013 National Hospital line in the market rankings, Wanda Hospital line to 3.16 billion yuan of the box office revenue ranked first, Shanghai United Courtyard line for the 1.84 billion yuan box-office revenue status ranked second.





, a beijing-based brokerage media analyst, said to the 21st century economic Reporter: "The battle between Wanda Hospital line and Shadow is actually the big shareholder contest, Wanda through the real estate expansion to achieve the rapid expansion of the hospital line, while the shadow stake is backed by the Shanghai state and local government propaganda system." ”




Profit Advantage
of
affiliated transaction




data show that Wanda Hospital Line was established in 2005, the registered capital of 100 million yuan, the current Wanda Hospital line of the main business for the theater investment construction, the hospital line film distribution, cinema film screening and derivative business. According to the information disclosed in the prospectus of Wanda Hospital line, the total profit of the ~2013 in 2011 was 416 million yuan, 526 million yuan and 789 million yuan respectively, the average annual growth rate of this index reached 38.22%.





And shadow shares formerly Shanghai Oriental Film and Television Distribution Co., Ltd., the establishment of the time is 1994 years. According to the information in the shadow share prospectus, Shadow shares 2011 ~2013 annual profit of 109 million yuan, 129 million yuan, 166 million yuan, the average annual growth rate of 23.52%.





from the surface, Wanda Hospital line either from the profit scale or the growth rate is better than shadow shares, but because Wanda Cinema is mostly based on its own commercial real estate, so Wanda Hospital line of the related transactions are very much outside concern.





Prospectus shows that 2011 ~2013 years, Wanda Hospital line to the Wanda commercial real estate payment costs are 0.94, 1.58, 222 million yuan, accounting for the total operating costs of the 5%-7% level.





, a senior person in the Shanghai film industry, told the 21st century Economic report that the scarcity of important business circles throughout the country led to a very fierce competition for theater layout, which also led to a rise in rental costs for cinemas. Although the former state administration of SARFT in the "on the promotion of film production issued a coordinated development of the guidance" said that the cinema's annual real estate rent in principle does not exceed 15% of the annual box office, but commercial developers do not buy this, in recent years, the actual cinema rental and box-office ratio has reached 15%~20% level.





Although the Wanda Hospital line in its prospectus, said that the leasing of housing related transactions are the company's day-to-day operation of the necessary acts, conducive to the smooth operation of the business and normal operation, and committed to strictly comply with the principle of fair market. But the associated rental price of the Wanda Hospital Line is 11% of the Cinema net box office income, and the relevant proportion of the future related rent is not more than 13%, not less than 9%. This indicator is far below the actual price in the current market.





to the end of 2013, Wanda Hospital line in the country a total of 73 cities, opened 142 cinemas, of which a total of 83 cinemas constitute the associated transaction-style leasing, only 59家万 to the cinema's property leasing does not constitute a related transaction.





in 2011-2013 The amount of shadow shares payable in respect of the accounts payable increased from 2.54% to 10.59%. At the same time, the minimum fixed rent (not including floating rent) to be paid by the shadow shares within 2014 years is 66.86 million yuan, which accounts for 19.03% of the operating cost, and is above the level of the Wanda Hospital line of less than 7%.





Due to the advantages of property rentals, by the end of 2013, Wanda Hospital Line has a total of 90 wholly-owned subsidiaries and a holding subsidiary, according to the 21st Century Economic Report statistics, of which 2013 close to 30 million of the net profit of the local subsidiaries a total of 5: Wuhan Wanda Studios, Changchun Wanda Film City, Harbin Wanda Studios, Chengdu Wanda Film City and Beijing Wanda Studios.




The total number of holding and wholly owned subsidiaries of
Shadow's operating theatres is 24, of which nearly 30 million of the net profit in 2013 was only 2 in Shanghai Studios and United yard.





but on the other hand, Shadow's subsidiaries of corporate income tax, business tax, value-added tax are entitled to the government relief, and enjoy additional financial subsidies, the last three years shadow shares and its subsidiaries have received a total of 13.66 million yuan, 18 million yuan, 30.98 million yuan of various tax relief subsidies.




The hidden worries under the
horse race





Currently, national total number of 46 lines, of which Wanda Hospital line, Shanghai United Hospital Line, the U.S. stars ranked the top three in the industry, 2013 years before the five courtyard line market share of nearly 50%, and the industry's first 10 hospital line occupies about 80% of the market share, the industry concentration has been higher.





, vice president of Arts and Hou Tao to the 21st century economic reporter said that the listing of two companies will use the capital market power to accelerate the integration.





Prior shadow shares of the advantages of mainly concentrated in the Yangtze River delta, in particular, the Shanghai market, shadow shares in the market share of more than 50%, but in the market, shadow shares are not outstanding, so the company said in the fund-raising, is expected to spend 740 million yuan in the country to build 34 cinemas, the territory to expand to Beijing, Xi ' An, Suzhou, Wuxi, Changsha and other fields.





and Wanda Hospital line is planned to raise 2 billion funds, of which, in addition to 400 million yuan for supplementary liquidity, the other 1.6 billion yuan for theater construction projects, planned to end of 2016 in the country to build 260 theaters.





at present, the main revenue of the hospital line from the box office income, food derivative income and advertising business three, more scale expansion also means more revenue overlay.





However, the above two companies in the new round of happy enclosure will inevitably make their own fixed assets, intangible assets and long-term prepaid expenses surge, once the industry environment, market demand changes, would result in actual income and expected deviations, which will face the increase in fixed asset depreciation and thus affect the risk of listed companies ' profits.





Hou Tao told the 21st century economic reporter said, aside from the property rent, the future of the threat of the development of the hospital line will be more likely to come from the home theater market, at present, including Tcl, Imax and many other domestic and foreign manufacturers have looked to this market, home surround sound, The mature application of 3D vision makes it possible to reach the cinema effect at home.





"At the same time, the competitors also include KTV VIP Hall, car Theater, the user's channel will be more and more diversified, including internet pay and on-demand combination, from the periphery of the theater is a form of competition. "Hou Tao said.