According to recent reports, Founder Securities has initiated coverage of CHINA RUYI (00136) with a "Buy" rating, projecting adjusted net profits of 2.157 billion, 2.447 billion, and 2.850 billion yuan for 2025-2027, corresponding to price-to-earnings (PE) ratios of 19, 16, and 14 times, respectively. Taking into account CHINA RUYI's growth momentum, clear development path, and investment support, as a new leader in the film and television industry, the company is poised to benefit significantly from the AI wave reshaping content production and distribution. By 2025, amid a comprehensive industry cleanup and the overall impact of AI across various sectors, the firm anticipates that the film and television segment, being a classic content industry, will establish a new landscape and foster new leaders during the development process.
In terms of film content, the company excels in deep content exploration and quality production capabilities. It has a substantial reserve in production and distribution as well as diversified thematic layouts. In the television drama sector, the company's full-process production capabilities stand out, focusing on high-quality IP development and premium content creation while actively collaborating with major domestic video platforms and expanding into overseas markets.
Pumpkin Movie, as a long video platform, adheres to "empowering content distribution through technology." The company emphasizes the integration of AI technology in content creation, user service, and channel operations, aiming to drive differentiated competitiveness in the streaming media business through technological innovation and successfully strengthening its industry position.
The company's gaming business maintains a high-level growth strategy that includes: 1) high-quality product development and operation; 2) deepening ties between film and gaming; 3) commercializing IP operations while actively expanding into sports, MMORPG, and audio-visual fields; and 4) enhancing research and development efficiency with AI.
As part of its transition to becoming a new industry leader, mergers and acquisitions play a crucial role in the company’s strategy, focusing on core tracks: 1) acquiring Wanda Film for strategic synergy, achieving a full-process connection from content creation and production to terminal release; 2) strategically investing in 52TOYS to develop IP derivative businesses; 52TOYS boasts a rich collection of proprietary IP resources and established partnerships with numerous renowned international IPs; and 3) initiating a 30% equity acquisition of Fast Money to deepen its "culture + technology + finance" strategy.