Research Report Insights | Guohai Securities: Maintain "Buy" Rating for Hengdian Film and Television, and Promote the Development of Innovative Businesses such as Short Dramas

Guohai Securities research report indicates that growth in the film market and cost optimization have driven Hengdian Film and Television’s performance improvement by 2025. The company is actively developing innovative businesses such as short dramas, transitioning to a “full-chain operation model centered on IP.” According to Maoyan, the company’s film investment market share is 3.81% (up 0.07% year-on-year), ranking second among national film investment companies. As of the end of 2025, the company owns 446 directly operated cinemas/screens with 2,847 screens, a decrease of 8 cinemas/screens and 48 screens year-on-year, with 10 new directly operated cinemas opened. The company implements a dynamic tracking and evaluation strategy for operating cinemas, closing or transferring cinemas with poor long-term performance and lacking growth potential to improve overall asset quality. Film investment and production business faces short-term pressure, while the company is vigorously promoting short drama businesses. The company is upgrading to a “full-chain operation model centered on IP,” diversifying into short dramas and AI animation content, which is expected to achieve significant development. Based on this, a “Buy” rating is maintained.