Maoyan Entertainment hit new high since Jan after forecasting 180% surge in H1 profit

 

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Maoyan Entertainment, China’s biggest movie ticketing platform, surged 18.4% in Hong Kong to hit HK$10.28, a new high since January this year.

The company said its first-half revenue is expected to reach 2.15 – 2.25 billion yuan, surging 80.5% – 88.9% from a year earlier, and profit attributable to shareholders to reach 380 – 240 million yuan, surging 150.2% – 183.1%.

China’s culture and entertainment industry posted a broad recovery in the first half and the number of movies which the company participated in production and distribution increased significantly from a year earlier.

CICC said that Maoyan’s earnings are stronger than expected and raised the target price by 29% to HK$12. The broker raised the forecast of Maoyan’s net profit attributable to the parent company in 2023 and 2024 by 40.4% and 15.8%, respectively, to 650 million yuan and 800 million yuan.

Jefferies raised the target price for Maoyan to HK$14.9 from Hk$13.5, maintaining a buy rating.