The film and television production company Happy Blue Ocean (300528.SZ), has been depressed for many years, but it suddenly exploded in the past month!

On September 5, 9 and 10, the Happy Blue Ocean rose by 14.35%, 20%, and 13.83% respectively;

Previously, from July 24 to 30, Happy Blue Ocean recorded 4 "20CM" daily limit in 5 trading days.

From July 24th to the present, the maximum increase in the Happy Blue Ocean range has reached 152.58%.

Happy Blue Ocean was once popular when it was launched in 2016, but it has been sluggish since then, and it has been nearly 10 years. Why are you suddenly sought after by funds now?

Three major reasons:

1. The film and television sector ushers in a recovery;

2. Happy blue sea is struggling with the "hot product".

3. Turn losses into profits.

The film and television industry, which was previously deeply in the "cold winter", is ushering in a significant recovery.

National Film Administration data shows:

The box office of movies in the first half of 2025 reached 29.231 billion yuan, a year-on-year increase of 22.91%; the box office of movies during the summer season (June 1 to August 31) was 11.966 billion yuan, a year-on-year increase of 2.76%.

Why is it called "recovery"?

Because in 2024, the box office of Chinese films fell by 22.7% year-on-year.

The recovery of the film and television industry this year is due to many reasons.

Policy factors:

A number of support policies have been introduced at the national and local levels. At the beginning of 2025, the General Office of the State Council issued a notice on "Several Economic Policies on Promoting High-Quality Development of Culture", which clearly emphasized the need to promote the creation of high-quality cultural products in the field, especially the creation of key content such as film and television, animation.

It also directly stimulates the market through large-scale consumption subsidies, such as the "National Film Consumption Season" that invests a large amount of subsidy funds.

Supply Factors:

The number of movie filings rebounded from 2023 to 2024. According to the content production cycle, institutions predict that the supply of domestic movie content is expected to recover in 2025, promoting the continuous recovery of box office.

Head video pull:

As the strengthening of cultural confidence in the whole society, domestic high-quality films have emerged one after another. Since this year, well-known and popular films such as "Nezha: The Devil Child's Trouble", "Nanjing Photo Studio", and "Light Monster of Langlang Mountain" have emerged, which have attracted consumers to watch the movie.

The happy blue ocean has struck the hit "Nanjing Photo Studio".

On July 25, "Nanjing Photo Studio", which is based on real evidence of Japanese crimes during the Nanjing Massacre, was released. The film won the summer championship with a box office of 2.89 billion yuan (as of August 31).

The day before the release, on July 24, Happy Blue Ocean, the daily limit, rose 115.12% in 6 trading days, doubled.

Happy Blue Ocean is a participant in "Nanjing Photo Studio". However, it is worth noting that Xingfu Blue Ocean stated on the interactive platform on August 5 that the company's investment ratio is relatively low, and it is expected that the profits generated by the video will not have a significant impact on the company's operating performance.

The Nanjing Photo Studio has 9 producers, 2 publishers, and 21 co-producers, with a share of 38.78%. "Nanjing Photo Studio" will last until September 24. If calculated based on the box office of 2.89 billion yuan as of August 31, the 30 companies will receive a total of 1.12 billion yuan.

The 9 producers include listed companies such as China Film, Happy Blue Ocean, Wanda Film, and Shanghai Film.

Compared with several other listed companies participating in the production, the total market value of Xingfu Blue Ocean is significantly lower (it was only 4.4 billion yuan before this round of soaring), which is obviously better to rise. In addition, the stock price has been oversold at a long time, so it has become a target for short-term funds to pursue.

Happy Blue Ocean's performance has improved this year.

Happy Blue Ocean is mainly engaged in the entire industry chain of TV series production, distribution and films, among which the entire industry chain of films covers production, theaters, distribution and cinema screening.

In the first half of 2025, the company's operating income was 413 million yuan, a year-on-year increase of 10.72%; the net profit attributable to shareholders was 8.6342 million yuan, a year-on-year turnover of losses into profits.

However, the "net profit attributable to shareholders" that reflects the profitability of the main business is still in a loss of 5.3032 million yuan, but the loss is significantly reduced compared with the same period last year. The net profit attributable to shareholders in the first half of last year was a loss of 44.5812 million yuan.

At present, the valuation bubble of Happy Blue Ocean is already very obvious.

The latest price-to-earnings ratio is 632 times, which means that according to the current profit level, it will take more than 600 years for shareholders to recover their capital.

The company's total market value has reached 10.9 billion yuan, far exceeding the company's current net assets of 541 million yuan. This means that if you sell all the current stocks of Xingfu Blue Ocean, you can buy 20 (10.9 billion/541 million) Xingfu Blue Ocean companies themselves.

The company's nearly 40,000 shareholders are obviously lucky. However, while enjoying the rising dividends, you also need to pay attention to risks.