Huayi Brothers Alert:2016preliminary results,net profit decreased by 17%yoy

Huayi topline down by 10% yoy, net profit down by 17% yoy

    Huayi Brothers reported 2016 preliminary earnings results last night. Net profitof RMB808m, down by 17%, missed our estimate of RMB991m by 18%. Totalrevenue of RMB3,473m (-10% yoy vs. RMB3,873m in 2015) missed ourestimate of RMB5,038m by 31%. The main reason for the top-line miss is theunderperformance of media entertainment business because of the weakercontent.

    Revenue from media entertainment business is RMB2,569m, down by10%.yoy. This is the primary reason for Huayi’s revenue decrease.

    Revenue from brand authorization is RMB248m, increased by 347% yoy

    Revenue from online entertainment is RMB676m, down by 21% yoy