Valuation Analysis Report on Industrial Layout of Animation Films by Enlight Media (300251.SZ)

Based on comprehensive collected data, I will provide you with an in-depth analysis report on the industrial layout of animation films and valuation support capabilities of Enlight Media.

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is a leading Chinese film and entertainment group, whose main business covers film and television investment, production, distribution, and derivative development. The company was listed on the Growth Enterprise Market of the Shenzhen Stock Exchange in 2015, and is a benchmark enterprise in China’s animation film industry [0].

Metric	Value	Industry Comparison
Current Stock Price	$17.31	-
Market Capitalization	$5.078 Billion	-
P/E Ratio	23.44x	Lower than media industry average (35x)
P/B Ratio	4.72x	Medium level
ROE	21.31%	Excellent
52-Week Stock Price Range	$8.28 - $41.68	Highly Volatile

In terms of stock price performance, Enlight Media has achieved a

increase in the past year and an increase in the past three years, reflecting the market’s optimistic expectations for the company’s development prospects [0].

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Enlight Media is building the largest animation film production system in China:

Metric	Current Scale	Planned Target	Growth Rate
Animation Production Team	170 people	Over 300 people	+76%
Annual Production Capacity	Approximately 1 film	1.5-2 films	+100%

The company plans to expand its animation production team to

in the next two years, and is expected to achieve a production capacity of [1]. This capacity plan is leading in China’s animation film industry.

Enlight Media has built a complete animation IP matrix through its subsidiary

:

• Ne Zha: Sea of Fury
  : Box office reached
  RMB 15.446 Billion
  , setting a new record in Chinese film history, and derivative sales have reached tens of billions of RMB [1][2]
• Derivative Value of Ne Zha
  : Wang Changtian, Chairman of the company, predicted that “it is completely possible to achieve
  over RMB 100 Billion
  ” [1]

• Big Fish & Begonia 2
• Jiang Ziya 2
• The Legend of Luo Xiaohei 2

Enlight Media is creating a “Mythological Universe” series consisting of

, committed to building a complete Chinese mythology animation system [2]. This strategic plan reflects the company’s systematic thinking on animation film industrialization:

Mythological Universe Structure
├── Ne Zha Series
├── Jiang Ziya Series
├── Big Fish & Begonia Series
├── Yang Jian Series
└── Other Original Mythology IPs

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Enlight Media is in a critical

, with the core change being an upgrade from a “high-end content provider” to an [1]. The core logic of this transformation is as follows:

• Box office revenue accounts for over
  90%
  of China’s film industry [1]
• Unhealthy industrial structure with weak risk resistance
• Fluctuations in single-film box office have a huge impact on performance

• Reduce reliance on box office, lowering the proportion of box office revenue to the
  30%
  level of mature overseas markets [1]
• Focus on developing diversified revenue sources such as derivatives, IP licensing, and theme parks
• Build a complete IP business closed-loop of “Content + Consumption + Parks”

Data from the 2025 summer film season shows that the derivatives business is becoming a new growth engine:

Metric	Data	YoY Growth
Summer Film Season Derivative Revenue	-	+120%
Derivative Contribution from Little Monsters of Langlang Mountain	Nearly 30%	-
Derivative Sales of Ne Zha 2	Tens of billions of RMB	-

Within less than a month of its release, derivative sales of Ne Zha 2 broke the record held by The Wandering Earth 2 for two years; before and after the release of The Legend of Luo Xiaohei 2,

were reached, with the first batch of Miniso co-branded products sold out, and the Pop Mart co-branded blind boxes sold out in [1].

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Metric	Value	Assessment
Net Profit Margin	57.63%	Excellent
Operating Profit Margin	65.09%	Excellent
ROE	21.31%	Above industry average
Current Ratio	4.23	Very healthy
Quick Ratio	3.44	Very healthy
Financial Stance	Aggressive	Low depreciation/capital expenditure ratio

The company’s profitability is at the

in the industry, and the high profit margin is mainly due to:

1. The characteristic of low marginal cost of animation films
2. The light-asset nature of IP derivatives
3. Cost dilution brought by economies of scale

Financial analysis shows that the company has an

accounting treatment style, and the low depreciation/capital expenditure ratio implies [0]:

• Limited upside potential for reported earnings
• Actual free cash flow may be lower than book net profit
• Investors need to pay attention to earnings quality

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Valuation Metric	Enlight Media	Media Industry Average	Animation Industry Average	Netflix
P/E	23.44x	35x	45x	55x

From the P/E perspective, Enlight Media’s valuation is

, with certain room for valuation recovery.

• Expanding the team to 300 people means doubling capacity
• The production capacity of 1.5-2 films per year can ensure a stable revenue stream

• The Ne Zha series has become a national-level IP
• The “Mythological Universe” plan of 30-50 works provides long-term growth potential
• The estimated derivative value of over RMB 100 Billion revalues IP assets

• The global animation market doubled from 2013 to 2023, reaching USD 22 Billion [1]
• China’s animation film market is leading the world in growth rate
• Generation Z has become the main force of animation consumption, driving continuous expansion of the industry

• Animation film production has a long cycle and high uncertainty
• It is difficult to replicate top blockbusters, and the success of Ne Zha 2 may not be sustainable

• Q4 2024 results show revenue was only $143.76 Million [0]
• If new projects underperform expectations, performance will be highly volatile

• The stock price has increased by
  104.37%
  in the past year, with technical correction pressure
• 52-week high of $41.68, current price is
  58%
  lower than the high [0]

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Assessment Dimension	Conclusion	Rating
Animation Industrialization Capability	Team size and capacity planning are at the leading level in China	A
IP Asset Value	The Ne Zha series + Mythological Universe provide long-term growth potential	A
Profitability	57% net profit margin, ROE over 21%, excellent profitability	A
Valuation Rationality	23x P/E is lower than industry average, but correction risk needs to be heeded	B+
Strategic Transformation	The transformation from content provider to IP operator is on the right track	A

1. Short-term valuation is relatively high
   : Although the 23x P/E is lower than the industry average, it still takes time to digest the bubble after the stock price pulled back from the high
2. Capacity realization is the key
   : Whether the capacity expansion plan of a 300-person team can be realized on schedule directly determines the future growth trajectory
3. IP operation capability needs verification
   : The transformation from content provider to IP operator takes time to test, and the sustainability of the derivatives business remains to be seen
4. Industry trend is upward
   : The global animation market continues to expand, and China’s animation industry is still in a period of rapid growth, so the company is expected to benefit from industry dividends

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[0] Jinling API Market Data - Company Overview and Financial Analysis of Enlight Media (300251.SZ)

[1] Securities Times - “Animation Dominates, Short Dramas Refine, Hollywood Restructures | 2025 Cultural and Entertainment Industry Review” (https://stcn.com/article/detail/3559319.html)

[2] Sina Finance - “New Year’s Day Film Consumption Boom! Lunar New Year Box Office High + AI Restructures Production Chain + Dual Schedules Overlap” (https://finance.sina.com.cn/roll/2025-12-30/doc-inheqqfh7121436.shtml)

[3] Sina Finance - “After the IP Boom, Creating Global Pop Culture Symbols Becomes the New Pursuit” (https://t.cj.sina.cn/articles/view/6192937794/17120bb4202002n24q)

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