Triple-Net fusion Huayi Brothers will benefit

Remember when you were infatuated with the "No Thieves", "Soldier assault", "assembly number", "not sincere don't disturb" and so on these popular film and television works? Their producer, Huayi Brothers (300027.SZ), is the only company in the current a-share market that engages in film and television production. Some analysts believe that, after the triple-net fusion, the film and television works of sales channels will be greatly expanded, thus making excellent film and television works further scarce, Huayi Brothers will benefit from it, and get further development.

Guo Hai Securities media industry analyst Sheifei accepted the first financial daily newspaper "financial quotient" reporter interview, said, Huayi brother's advantage lies in its film and television drama works are many products, such as "Non-interference", "Soldier assault" and so on, are produced by the market hot, in short supply. "This kind of fine film and television drama works of the gross margin of up to 38%, in the market has a certain scarcity, the three nets integration, such works will become the focus of various channels to buy, bargaining ability is very strong." Three network integration after the positive trend is clear, the specific growth of the situation will be specific analysis. ”

At present, the domestic film and television industry sales channels single, the film is mainly for cinemas, and TV dramas are mainly television stations. After the triple-net fusion, the film and television are expected to break through the traditional movie theater and TV sales mode, access to the cable payment, IPTV and Internet channels, which not only makes the same content has more channels of fees, but also increased the competition in the buyer's market, enhance the quality of film, TV series Bargaining power To increase the market value of the same content several times.

As the domestic film and television production industry leader, the company 2009 Annual report shows that the film and TV production business in 2007-2009 accounted for the main business income of 80.4%, 82.4% and 79.7%, is the main source of corporate revenue.

2007 to 2009, the company's main business income is 235 million yuan, 409 million yuan, 604 million yuan, the recent three-year growth of 88.81%, 74.35%, 47.68%, compound growth rate of 69.4%. The growth rate of film revenue was 72.2%, 116.6%, 12.26%, the growth rate of TV dramas was 243.8%, 30%, 160.17%, and the growth rate of artists ' brokerage business was 27.8%, 150.6% and 77.77% respectively.

At present, the domestic film and television industry market size is not big. According to the statistics of CICC report, the movie box office income is about 6 billion yuan, the domestic TV series transaction amount is 5 billion yuan, but the film and television production industry has grown very fast in recent years. In addition, with the increase in the number of per capita and urbanization process, the domestic film box office maintained a high annual growth rate of more than 30%, from 2006 2.6 billion to 2009 6.2 billion yuan. CICC forecasts that the domestic movie box office is expected to break 10 billion yuan in 2011.

According to Sheifei, "the supply of domestic films in recent years directly determines the market position of domestic and foreign films." Domestic high-quality film works in short supply, while the TV market, although showing a saturated situation, but the quality of the work is still scarce, so the high-end market is still in demand. Like Huayi Brothers over the years accumulated a large number of film and television drama works of resources, the future will become their coffers. ”

Film and television industry is a "big shot of the world" industry, Huayi Brothers with Zhou Xun, Li Bingbing, Jiang and so on high-quality artist Resources and Feng Xiaogang, Jizhong and other High-quality director resources, platform, talent and financial advantages may be in the future to bring more opportunities to the company. A number of brokers for the next five years, the composite growth rate forecast of more than 35%.

Now the company is entering other related industries, the company is expected to have 6~8 in 2010, but will not contribute to the performance, but is expected to lose 5 million ~1000 million. The company's new online gaming business has yet to show its impact on performance, and the company is expected to form a scale of 1-2 years.

Risk Tip:

At present, the company for the production of film and television business dependence is strong, a movie box office fluctuations will affect the company's performance.