Wanlian Securities: The box office performance is under pressure in 2024, and theaters need to stabilize their operations.

Shanghai Winstar Securities released a research report stating that the strong performance of the New Year and Spring Festival box office has created a good start for the 2024 film market. With multiple favorable factors such as the recovery of film production efficiency, the resurgence of viewing enthusiasm, and the recovery of the macro economy, the film market is showing strong vitality. Due to the film content supply falling short of expectations, the box office performance of the summer box office is under pressure. In 2025, many high-quality new films are poised to be released and the demand for viewing remains strong, so the overall market performance is expected to rebound. It is recommended to focus on the core production companies of high-quality films, as well as leading companies in film production and distribution and cinema chains. Key points of Shanghai Winstar Securities are as follows: - The box office in 2024 declined mainly due to a decrease in the number of viewers. - Domestic films in mainland China faced pressure with a significant decline in box office revenue, while imported films performed well. - The supply of films decreased in 2024, with a significant increase in the box office revenue of comedy films. - The number of cinemas continued to grow, with Wanda Cinemas maintaining a leading position. - Risk factors include film reputation and quality falling short of expectations, film delay risks, and risks related to film reputation.