The "Wolf Warriors 2" box office hot fund is still cautious about film and television stocks.

​ Wolf Warriors 2 is a hit, but the capital feast it brings has nothing to do with public funds. Public offering funds have previously "collectively abandoned" film and television stocks, and even cultural theme-related funds have chosen collective low allocation.

Wolf Warriors 2 has gone viral, but the capital feast it brings has nothing to do with public funds. Public offering funds have previously "collectively abandoned" film and television stocks, and even cultural theme-related funds have chosen collective low allocation.

according to statistics, there are currently 67 theme funds in the culture and media industry, with the scope of investment covering the mobile Internet and the media and entertainment sectors of the information industry. the reporter looked up these funds with a wide range of investments and found that most funds have very few holdings in film and television stocks.

among the 11 funds classified as "cultural media funds" in the Choice data of Oriental Wealth Network, the situation is also very similar. among these theme funds, only a few funds that strictly invest in the cultural and entertainment media industry hold some film and television stocks, and even some theme funds invest across the border in insurance and liquor.

< strong > Film and TV stocks are not liked by funds for a reason < / strong >

A private equity fund manager introduced to the reporter that in the past few years, there has been a round of consumption explosion in the domestic film and television industry, and correspondingly, film and television stocks have also stepped out of a big bull market, but in recent years, the growth pace of the domestic film and television industry has slowed down, so there has also been a big wave of adjustments in film and television related stocks.

so is the film and television stock valuable now? Will the "Wolf Warriors 2" phenomenon inspire institutions to buy it back? Zhang Heng, general manager of Hexiang assets, who has been engaged in research and investment in the TMT industry for a long time, told reporters that he thinks the valuation of film and television stocks has been attractive to a certain extent.

he analyzed that at present, the average valuation of the gem is still more than 40 times, but after the valuation of media stocks has been falling, most companies are only more than 20 times, especially the leading companies, whose performance growth is stable. Basically between 2030% and 30%, it can be said that they already have investment value. Judging from the actual trend, some stocks in the film and television industry have also rebounded recently, which has little to do with the mood boom triggered by "Wolf Warriors 2". It has more to do with the fundamentals of these companies, such as the reported results. However, he also believes that the emergence of "Wolf Warriors 2" will help improve the pessimistic expectations of the capital market about the market space of the film industry over the past two years, as well as the profit flexibility of related companies. "for example, the original forecast for the film and television company, we first see that the company will release several films a year, each film is expected to give several hundred million at the box office, and after adding it up, we can give a rough forecast of the performance of the film company." However, the emergence of "Wolf Warriors 2" will make future film companies' earnings expectations more flexible, and this change has not yet been reflected in the share prices of film and television stocks, he said.

although he is optimistic about the prospects of film and television stocks, he also told reporters that the main factors restricting the media film and television market still exist, the policy guidance of "getting rid of emptiness to reality" and the slowing down of the pace of mergers and acquisitions in the media industry. all these will restrict the performance growth of media film and television. He believes that the "tuyere" of film and television stocks has not yet arrived.

< strong > Film and television investment risk < / strong >

A public fund manager who is optimistic about the media sector told reporters that in the media sector, he is most optimistic about the game sector, but not the film and television stocks. He told reporters that the reason is that the market of film and television stocks is highly related to the box office of its films. But the release time of each movie is fixed and limited, and it is not known whether it is a "popular style" until the film is released. He further explained: "the success of Wolf Warriors 2 is unpredictable, and Wu Jing himself certainly would not have expected it to bring such a high box office." Therefore, the huge uncertainty brings great difficulty to the valuation of film and television stocks, which will pull down the valuation of each stock.

some fund managers also told reporters that as the current film and television investment risk is relatively high, generally speaking, film and television companies are "casting a wide net", and the investment proportion of each film will not be too high, therefore, even if you encounter a particularly popular film, the return of specific equity participation in listed companies may not be as high as the outside world imagines. On the other hand, the films invested by some listed companies or called "popular styles" of the year, but the sudden increase in performance is not sustainable, so the valuation can not be simply measured by PE, other factors need to be taken into account. "in the past, some funds participated in film and television company investment, the return is not very good, coupled with the TMT plate is not a hot spot in the near future, so we are very cautious."

the fund manager said that judging from the popularity of the research, many companies in the film and television sector have few industry researchers to organize research, as opposed to a few years ago.

Edit: mary