Can online announcements offset offline losses?
On May 6, Cat Eye Entertainment (01896.HK) Hong Kong stocks closed up 9.07% to HK $ 11.06 / share, with a total market value of HK $ 12.5 billion. During the session, Cat Eye Entertainment surged over 10% to HK $ 11.18, hitting a new high in nearly two months.
Before that, affected by the epidemic, the offline announcement received a big impact. Since the outbreak of the outbreak, Cat’s Eye Entertainment has fallen more than 20%. In mid-March, the stock price bottomed at 8.01 Hong Kong dollars / share, which was nearly lower than before the outbreak.
Source: Snowball
The rise in Cat Eye ’s share price today may be related to the previously announced new products.
On April 30th, Cat Eye Smart announced a new “24-hour speed” new product, which provided the ability to broadcast online long videos, thus alleviating the impact of offline advertising during the epidemic. During May 1st, Cat’s Eyes rejoices at the premiere online paid film list and updates an award-winning film daily.
In addition, Cat’s Eye said that the new product also included more award-winning films from the International Film Festival, as well as long-length video works such as domestic popular online big movies and online dramas, providing long-term online viewing services for viewers.
CICC ’s research report released this morning stated that although Cateye Entertainment ’s performance suffered during the epidemic, its long-term logic remains unchanged, optimistic about future development, and maintains an outperform industry rating with a target price of HK $ 15.50.
Previously, on April 30, Reuters quoted two sources as saying that regulators are planning to tighten regulations to prohibit the premiere of movies online to protect cinema business. Currently, Cat Eye Entertainment has not responded to this news publicly.