Hong Kong stock concept tracking | Nezha 2 enters the top of the global box office history list, institutions are optimistic about the cinema industry's upward trend (with concept stocks)

According to the global box office rankings of the Lighthouse Professional Edition, as of February 12th, the film "Ne Zha" has exceeded $1.266 billion, surpassing "Iron Man 3" and "Beauty and the Beast", entering the top 24 in the global box office history, and is about to surpass "Frozen". Guosen believes that the short-term recovery of content supply is expected to promote the growth of the film market, and the medium and long-term breakthrough in AI technology and its combination with the IP trend are expected to drive the continuous prosperity of the film industry. 1) The number of film registrations is expected to rebound in 2023-2024, the industry's content reserve is rich, considering the production cycle of content, the domestic film content supply is expected to recover in 2025, which is expected to promote the continuous recovery of box office. At the same time, benefiting from the characteristics of high operational leverage, exhibition channels are expected to usher in a better period of profit release. 2) In the medium and long term, the content side is expected to benefit from the progress of AI technology in reducing costs and improving efficiency; the channel side is expected to benefit from the continuous improvement of operating efficiency represented by the IP trend. Ping An Securities pointed out that the supply side of the film and television industry is gradually recovering, the number of films is showing a good growth trend, and after continuous repair and adjustment, the performance of leading companies is gradually recovering. The continuous support from policies and the encouragement of national entertainment consumption will help boost the prosperity of the film and television industry. In addition, the valuation of the film and television industry is relatively high, and it is optimistic about the steady and healthy recovery of the performance of leading cinema chains and production companies. Hong Kong stocks related to cinema chains include: MAOYAN ENT(01896), ALI PICTURES(01060), CHINA RUYI(00136), IMAX CHINA01970, STAR CM(06698) Derivative products series Guzi economy: POP MART09992, MNSO(09896), BLOKS(00325)