J.P Morgan Initiates Coverage On Bona Film Group At Overweight

Bona Film Group BONA is the leading film distribution company in China. The company has also expanded into film investment and production, theatres, film-related advertising, and talent agency businesses. China's box office per capita is currently one-sixteenth of the US. J.P Morgan sees Bona Film as a high growth potential stock backed by a solid China entertainment consumption story. J.P Morgan expects the company to be a key beneficiary of rising disposable income, rapid growth in the number of screens and theatres, increase in the number of good quality domestically-made movies, and lifestyle upgrade in China. According to EntGroup's forecasts, the Chinese film industry's revenue is expected to record 2009-2012 CAGR of 38%, to become a US$4.3 billion market by 2012. Bona Film's management team has a strong track record in the film business. The founder Dong Yu has over 15 years of experience in film distribution. Nansun Shi is a Hong Kong film producer and presenter with over 30 years of experience in the film industry. Since 2003, Bona Film has distributed 139 films. J.P Morgan has an $8.50 PT on BONA BONA closed Friday at $6.14