Bona Film Group Ltd (ADR) (BONA), IMAX Corporation (USA) (IMAX), The Walt Disney Company (DIS): Three Ways to Play China’s Huge Box Office Potential

The Walt Disney Company (NYSE:DIS) has long been known as the “happiest place on Earth.” That is true for the company in China as well. With several of the biggest blockbusters, The Walt Disney Company (NYSE:DIS) is in a great position to continue in China’s success. Recently released, “Iron Man 3” was the second highest grossing movie in the first half of 2013 for China. The movie made $123 million, placing behind domestic movie “Journey to the West: Conquering the Demons” ($204 million).

In fiscal 2012, The Walt Disney Company (NYSE:DIS)’s studio department was the third biggest business segment, behind media ($19.4 billion) and parks ($12.9 billion). The business segment saw revenue decline 8% to $5.8 billion. The segment did see profits jump 17% to $700 million. However, studio profits were a small piece of the $10 billion in annual profits.

The Walt Disney Company (NYSE:DIS)’s acquisition of Marvel brought it a huge cast of blockbusters, which has played well in China. The first “Iron Man” movie made $7.9 million in China. “Iron Man 2” made $15.3 million in China. The third movie saw huge growth in the franchise in China. “Avengers,” which also featured the Iron Man character made $84.1 million in China. With more Marvel movies coming, including “Avengers 2” in 2015, Disney is in a great spot to climb up the all-time charts in China.

The Walt Disney Company (NYSE:DIS) is also in a great position with one theme park in China and one on the way. Hong Kong Disneyland opened in 2005, and is attended by millions of visitors annually. In 2015, Shanghai Disney Resort is scheduled to open. Both of these parks allow Disney access to Chinese customers. The company can introduce characters and build up new releases.

For investors looking to profit from China’s growing box office, take a deeper look at any of these three names. Bona Film Group Ltd (ADR) (NASDAQ:BONA) is the most direct play on the Chinese market with films, talent, and theaters directly involved in China. IMAX Corporation (USA) (NYSE:IMAX) may represent the best way to profit from the box office, with its nice backlog of Chinese theaters and exposure to some Chinese language films. The Walt Disney Company (NYSE:DIS), on the other hand, is a great company with the added bonus of exposure to China. Investors should win with any of these three names going forward.

The article Three Ways to Play China’s Huge Box Office Potential originally appeared on Fool.com and is written by Chris Katje.

Chris Katje has a position in Imax. The Motley Fool recommends Imax and Walt Disney (NYSE:DIS). The Motley Fool owns shares of Imax and Walt Disney. Chris is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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