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1896 — Maoyan Entertainment News Story

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China's Maoyan Entertainment H1 revenue falls on box office slump

China's Maoyan Entertainment H1 revenue falls on box office slump


Overview

  • China film promoter's interim revenue for H1 2026 declined 28% yr/yr

  • Gross profit and adjusted net profit fell sharply compared to prior year period

  • Company attributed declines to lower nationwide box office and moviegoer numbers


Outlook

  • Company highlights a rich pipeline of films scheduled for release as opportunities arise

  • Company says national box office shows signs of recovery during summer movie season

  • Company continues to invest in offline performance and new businesses to strengthen competitiveness

  • Company said online entertainment ticketing will serve concerts by Jay Chou, Karry Wang and G.E.M, plus King Pro League esports events in H2


Result Drivers

  • WEAK BOX OFFICE - Co said revenue and profits fell due to a sharp decline in nationwide box office and moviegoer numbers

  • TICKETING VOLUMES – Online ticketing revenue fell as mainland box office declined 40.6% and moviegoers dropped 34.3% yr/yr

  • FIXED-COST LEVERAGE – Gross margin fell to 31.3% from 37.9% as costs did not decline proportionately with revenue


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

RMB 1.79 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the entertainment production peer group is "buy"

  • Wall Street's median 12-month price target for Maoyan Entertainment is HK$6.80, about 54.9% above its August 20 closing price of HK$4.39

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago


Reuters Recommended Reads

  • Aug 20 - How a low-budget fever dream sparked a Chinese box office revolt

  • Aug 18 - China's iQIYI Q2 net loss widens on higher income tax expense

  • Aug 20 - Belgium's Kinepolis H1 revenue jumps to record as Emagine deal boosts admissions


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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