China Securities Co., Ltd.: May Day and summer box office seasons provide a rich supply of films, with strong IP introductions supporting box office performance.

China Securities Co., Ltd. released a research report stating that with the arrival of the May Day and summer holidays in 2026, the film market is expected to gradually recover. Compared to last year's 9 films and the average level of previous years, there will be a significant increase in the number of films released during the May Day holiday, with a total of 14 films, second only to the 18 films released in 2023. Leading companies such as Maoyan, Wanda Film, Enlight Media, and Enlight Pictures have produced and released films, and there will also be an imported Hollywood film. Compared to the smaller number of films and lower box office numbers during the May Day holiday in 2025, this year's box office is expected to increase. Looking ahead to the summer holiday season, there is a strong lineup of domestic films ready to be released, with a rich selection of "comedy+" films. Bona Film Group and iQiyi are expected to release pure AI films, marking the beginning of the AI cinema era. Hollywood blockbusters are also well prepared, with new works from American directors such as Spielberg and Nolan, Marvel and DC superhero films, and sequels to popular animated IPs such as Despicable Me and Toy Story. Major IP films are expected to be introduced to China, supporting the performance of the domestic box office. In terms of investment targets, the bank recommends investing in MAOYAN ENT (the leading film ticketing platform) and China Film Group (imported film distribution company). They are also monitoring the progress of main investment films from leading production companies such as Enlight Media, Beijing Enlight Media, and Bona Film Group, as well as mid-sized cinema companies like Hengdian Entertainment.