What is the "secret" behind Wanda Film’s soaring market value 2.26 billion?


1905 movie network news On March 10, as the last batch of cured patients walked out of the Wuchang cabin hospital, all 16 cabin hospitals in Wuhan were closed. At the same time, China’s class A shares media stocks were affected by this good news and other factors, ushering in a collective rise.

 

Against the backdrop of the US stock market crash triggering the second circuit breaker in history, the rise of China’s stock market is quite profound. It is well known that the stock market is the projection of capital on the future development of the market.


Among them, Wanda Film’s share price rose by 6.42% on the same day, and its market value increased by 2.26 billion, ranking in the top echelon of the film and television sector. Shortly after the stock market closed on the same day, Wanda Film announced that it planned to issue 2 billion bonds due to factors such as the company’s operating needs.

 

Why did Wanda Films issue debt?


At 16:15 on March 10, Wanda Film, a class A share listed film company, issued an announcement saying that "the company applies for the issuance of debt financing instruments with a quota not exceeding RMB 2 billion (including 2 billion yuan) in a timely manner or in public or non-public ways according to the needs of funds."

  

In terms of term and variety, the debt financing instruments issued by Wanda Film this time shall not exceed 5 years (including 5 years), which can be a single term variety or a combination of multiple term varieties. The proceeds raised will be used to meet the company’s production and operation needs, repay the company’s debts, supplement working capital and/or project investment and other uses permitted by laws and regulations.

 

On January 6, 2020, Wanda Film announced that it would terminate the previously disclosed planned issuance of no more than 4 billion convertible corporate bonds, on the grounds that "in view of the adjustment of the company’s capital operation plan and changes in the capital markets environment." This can also reflect the lack of "surplus" in Wanda Film’s capital pool.

 

"Wanda [film] is short of money, but the current financial situation, this 2 billion bond interest rate will not be low, it seems that it is working for creditors," a user commented in the comment area of the snowball app Wanda Film’s bond issuance announcement.


In 2019, there were fewer master-controlled popular works and the impact of the epidemic on cinemas, which became one of the direct reasons for Wanda Film’s lack of money. In addition, favorable policies such as priority issuance of bonds for enterprises affected by the epidemic also provided convenience for this issuance.

 

According to previous announcements, Wanda Film’s main and controlled films in 2019 include,,,,, etc. Among them, the best box office is the dark horse film "Manslaughter", which 1.206 billion New Year’s Eve. In the release announcement of the film, Wanda Film ranked second in the order of production.

 

According to the Lighthouse Professional Edition, the total box office (excluding service fees) of Wanda Film theaters in 2019 was 8.128 billion, the number of viewers was 208 million, and the average number of screenings was 20. The data of the above dimensions ranked first among the 50 domestic theater companies in 2019. Therefore, the collective offline withdrawal of Spring Festival films has a great impact on the revenue of Wanda Film and other leading theater companies.

 

In a movie ticket that does not include service charges, 5% of the movie fund and 3.3% of the tax are removed, and the rest is the box office. Normally, theaters can get 50% of the box office, and theaters can get 7%. The loss of pre-release advertising, popcorn and other snack income is self-evident.

 

According to the Southern Zhou Know report, the withdrawal of the Spring Festival file will directly affect about 20% of the theater’s annual revenue. Previously, the industry’s overall box office estimate for the 2020 Spring Festival file was about 7 billion. At present, Wanda Film and other theater chains have also launched self-rescue through cloud store opening and other means to reduce the inventory of products and relieve financial pressure.

 

The "secret" behind 2.26 billion soaring market value


On March 9, Beijing time, US stocks suffered a "Black Monday". On this day, the S & P 500 index opened down 7%, causing the New York Stock Exchange to trigger the circuit breaker mechanism for the first time since it was implemented in 2013. This is also the second time in the history of US stocks.

 

In this context, the collective "red" of China’s class A share film and television sector on March 10 is more profound. Among them, Wanda Film rose by 6.42%, ranking first in the list of old private film companies. As of the close of the day, the closing price of the company’s shares rose from 16.99 yuan on March 9 to 18.08 yuan, up 1.09 yuan per share, and the company’s market value increased by 2.26 billion.

 

People buy stocks to buy future expectations, and the stock price reflects the capital’s anticipation of future market development in advance. Globally, China’s effective control of the epidemic ranks first. On March 10, the closure of the last makeshift hospital in Wuhan also gave great confidence to the market and investors.

 

"The closure of all the warehouse in the shelter hospital [indicates] that the epidemic in China has basically been controlled and has entered the final stage. The capital markets reflect expectations, indicating that everyone’s expectations have improved, and the film and television stocks that fell badly before have begun to rebound." A professional financial professional working for a leading domestic Internet company expressed his own views.

 

For Wanda Film, although missed the Spring Festival file, but its main control is undoubtedly one of the current people’s most concerned about the movie to be shown. At present, the film cat’s eye, lighthouse two major online ticket platform to see the number of people reached 2.14 million, 5.48 million. Holding the market hot film to be shown, but also let Wanda Film current period of time by the market.

 

In previous media interviews, director Chen Sicheng said: "’Detective Chinatown 3′ has indeed been greatly affected by the epidemic. At present, depending on the recovery of the film market, it will be released at a certain time. It will be released in the summer at the earliest, and it may also be selected for the Spring Festival next year."


No matter which schedule is released, high-quality content is always the biggest motivation for audiences to pay for tickets. According to Xiao Dianjun’s colleagues who have seen the film in advance, in his opinion, the film feels better than the second film as a whole.

 

On March 11, the class A share film and television sector continued to thrive. At 3:00 pm on the same day, Wanda Film rose 3.43% per share, a single share rose 0.62 yuan, and the market value rose 1.28 billion.

 

In addition, the share prices of listed film companies with cinema business such as Happy Blue Ocean, Jinyi Film and Television, Hengdian Film and Television also rose for two consecutive days. The same is true for TV drama stocks such as Ciwen Media. Under the influence of favorable factors such as the effective control of the national epidemic, the signal of the capital markets on the recovery of the film and television industry has been relatively obvious.