[ET Net News Agency, 17 February 2021] Morgan Stanley lifted its target price for
Maoyan Entertainment (01896) to HK$20 from HK$19 and maintained its "overweight" rating.
The research house said 2021 CNY industry box office revenue may beat Morgan's base case
estimate of Rmb6.8bn (+15% versus 2019). It thinks this is mainly due to strong demand
especially given travel is restricted this year.
As a result, the 4-day (12-15 February) attendance rate was 47%, higher than Morgan's
estimate of 40% for the whole CNY window. Due to the strong demand, the 4-day average
ticket price is also higher at Rmb49 versus Rmb45 during 2019 CNY.
Morgan noted that Maoyan is the lead distributor and one of the main producers of "Hi,
Mom". It estimated an Rmb100-200mn incremental profit contribution from "Hi, Mom", given
its significant outperformance. Morgan increased its 2021 non-GAAP net profit estimate
by Rmb168mn to Rmb754mn. (KL)