BEIJING ENLIGHT MEDIA CO. LTD.(300251)：ANIMATION MOVIE LEADER TO BE RE-EVALUATED IN AI ERA

Investment Thesis
　　The production process of film and television is reshaped, particularly benefiting animation movies. As a comprehensive form integrating audio, video, and text, the film and television industry is an ideal application scene for generative AI. From the perspective of value and path of AI application, we expect animation movies to benefit first. Compared with the one-to-two-year production cycle of live-action movies, animation movies take more time （3-4 years） and are more complex, with more obvious capacity constraints. We believe that generative AI technology can empower the early script creation, mid-term painting, and final-stage video editing/dubbing/video output of animation movies, breaking the capacity limit of animation movie production, and further opening the market potential by increasing the supply of high-quality animation movies.
　　Re-evaluation of high-quality IP: data value and derivative value. 1） Data value from 0 to 1: Technically, high-quality data is necessary for the training of large models and can be monetized in the participation of large models through revenue sharing. 2） Derivative value from 1 to 100: Creatively, we expect IP to become the starting point and carrier for AIGC. For film and television IP, we expect it to increase subsequent monetization efficiency through generative AI technology, such as accelerating the development of series derivatives （such as games, toys, etc.）， exploiting the derivative value of film and TV characters （such as making animation protagonists into virtual people for marketing, e-commerce, etc.）， and producing other forms of content for monetization （adapting animation movies into games）， thus improving the value of IP throughout its life cycle.
　　Beijing Enlight Media, animation movie leader, is likely to be re-evaluated in AI era. （1） We are optimistic about the company's use of generative AI technology to empower its film and television business, especially in the creation of animation movies, while opening the monetization potential of existing high-quality IP. The company is deploying exploratory practices on AI technology internally and actively looking for the combination of content creation. It has also used the latest generative AI technology in animation movie- related work: when the company announced in March that it would launch the animation movie "Go to Your Island", it released the first concept poster made with Midjourney, stable diffusion, GPT4 and other technologies. （2） As a leader in the animation movie field, the company holds many high-quality IPs （such as Nezha, Jiang Ziya, Deep Sea, etc.）， and we expect it to open monetization potential in the AI era. We expect Beijing Enlight Media, as an animation movie leader that actively embraces new AI technology, to maintain its advantage in the AI era.
　　Earnings Forecast & Rating: We revise down the net profit of the company in 2022-2024 to Rmb-0.68/0.79/0.98bn, implying P/E at 43x/35x in 2023/2024. Considering its long- term growth potential, we initiate with the "Buy" rating.
　　Risks: Lower-than-expected development of AI technology & infrastructure, failure of film projects, intensified market competition, content review risks.
【免责声明】本文仅代表第三方观点，不代表和讯网立场。投资者据此操作，风险请自担。

   【免责声明】本文仅代表第三方观点，不代表和讯网立场。投资者据此操作，风险请自担。