Citibank: Give Maoyan Entertainment (01896) a “buy” rating target price of HK$6, optimistic about the competitive position of the National Day program

The Zhitong Finance App learned that Citi released a research report stating that it gave Maoan Entertainment (01896) a “buy” rating, with a target price of HK$6, based on a forecast of a 14-fold adjusted price-earnings ratio in 2027 to reflect a recent media sector revaluation. Investors' low expectations for the National Day box office are mainly due to weak consumption and lack of clear revenue, and the Mid-Autumn Festival and National Day holidays may also allow travel to replace movie consumption; however, due to low expectations, the bank is optimistic about the competitive position of Cat Eye Entertainment and sees it as the main beneficiary when the box office is better than expected.

The bank pointed out that Cat Eye has confirmed the schedule of four different types of movies, covering crime, action, animation, and comedy. After peer contraction, the pattern as a leading publisher and ticketing platform is beneficial to Cat's Eye; Reading Text Group (00772) has “Traces of a Detective,” while Daimai has no movies. Light Media will screen “Live and Fragrant”, and the bank also expects “Battle of Penghu” by Bona and Cat Eye to be screened. The bank predicts that the 2026 National Day box office will be 1.6 billion yuan, down 12% year on year, and flat on a daily basis.