Core Viewpoint - The company reported a decline in revenue and net profit for Q3 2025, indicating challenges in the current market environment and increased competition [1][2]. Group 1: Financial Performance - For the first three quarters of 2025, the company achieved revenue of 1.833 billion yuan, a year-on-year decrease of 8.98%, and a net profit attributable to shareholders of 754 million yuan, down 25.22% year-on-year [1]. - In Q3 2025, the company recorded revenue of 753 million yuan, a decline of 9.94% year-on-year, with net profit attributable to shareholders at 354 million yuan, down 22.60% year-on-year [1][2]. - The gross profit margin decreased by 3.5 percentage points to 72.1%, while the sales expense ratio increased by 2.8 percentage points to 8.2% due to rising advertising and online sales platform service costs [2]. Group 2: Market and Operational Challenges - The revenue decline was primarily attributed to the overall consumer environment, changes in regional tourism market demand, and intensified competition [2]. - The company recognized 50 million yuan from the Taizhou light asset project in Q3, compared to 21 million yuan from the Sanxia light asset project in the same period last year; excluding light asset income, revenue would have declined approximately 13.8% year-on-year [2]. Group 3: Brand and Project Development - The company is enhancing its brand strength through influencer incubation and live streaming, aiming to create a new marketing model that links online traffic with sales at tourist sites [3]. - New projects include signing two light asset projects in Qingdao and Taizhou, with ongoing discussions for additional collaborations; the company is also exploring heavy asset projects and international expansion, including a project in Thailand [3]. Group 4: Future Outlook - The company is expected to achieve revenues of 2.26 billion yuan, 2.50 billion yuan, and 2.67 billion yuan for 2025, 2026, and 2027, respectively, with net profits of 800 million yuan, 960 million yuan, and 1.07 billion yuan [3]. - The current stock price corresponds to price-to-earnings ratios of 26.8x, 22.2x, and 20.0x for the respective years, maintaining a "buy" rating [3].

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Insights - The company experienced operational pressure in Q3 2025, with a revenue decline of 9.94% year-on-year, totaling 7.53 billion yuan. The net profit attributable to shareholders decreased by 22.60% year-on-year to 3.54 billion yuan [1][2] - The company is focusing on strengthening its brand power through innovative marketing strategies and new project developments, including light asset projects in Qingdao and Taizhou, and an overseas project in Thailand [2] - The projected revenues for 2025-2027 are 22.6 billion yuan, 25.0 billion yuan, and 26.7 billion yuan respectively, with net profits of 8.0 billion yuan, 9.6 billion yuan, and 10.7 billion yuan [2] Financial Summary - For Q1-3 2025, the company reported revenues of 18.33 billion yuan, a decrease of 8.98% year-on-year, and a net profit of 7.54 billion yuan, down 25.22% year-on-year [1] - The gross margin for Q3 2025 was 72.1%, a decline of 3.5 percentage points year-on-year, while the net profit margin decreased by 7.7 percentage points to 47.0% [1] - The company’s financial ratios indicate a projected P/E ratio of 26.8x for 2025, decreasing to 20.0x by 2027 [4]

证券研究报告 | 2025年10月28日 宋城演艺（300144.SZ） 优于大市 短期业绩承压，跟踪项目迭代成效与经营拐点 2025Q3 公司收入-9.9%，归母净利润-22.6%，剔除轻资产确认后估算相对承 压。2025Q3 公司收入 7.5 亿元/-9.9%，归母净利润 3.5 亿元/-22.6%，扣非 净利润 3.4 亿元/-23.4%；2025Q1-3 公司收入 18.3 亿元/-9.0%，归母净利润 7.5 亿元/-25.2%，扣非净利润 7.3 亿元/-26.9%。结合公司投资者交流日志， 前三季度轻资产设计策划费确认 1 亿元，其中 Q3 为 5000 万（上年同期确认 1.7 亿元，其中 Q3 确认约 2000 万），若剔除轻资产部分估算自营项目收入 同比下滑 16%，利润同比下滑 31%，相对承压。 公司轻重结合发展，自营项目积极改造应对挑战，轻资产签约推进贡献增量。 | 盈利预测和财务指标 | 2023 | 2024 | 2025E | 2026E | 2027E | | --- | --- | --- | --- | --- | --- | | 营业收入(百万元) | 1,926 | ...

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company reported Q3 revenue of 753 million RMB, a year-over-year decrease of 9.94% but a quarter-over-quarter increase of 45.19%. The net profit attributable to the parent company was 354 million RMB, down 22.60% year-over-year but up 130.88% quarter-over-quarter [1][6] - For the first three quarters of 2025, the company achieved a total revenue of 1.833 billion RMB, a decrease of 8.98% year-over-year, with a net profit of 754 million RMB, down 25.22% year-over-year [1][6] - The decline in Q3 revenue was primarily due to a decrease in performance and an increase in sales expense ratio. However, the performance during the National Day holiday showed a slight recovery, which is expected to positively impact Q4 [1][2] Summary by Sections Q3 Performance - The company experienced differentiated performance across its existing projects, with total performances for the "Eternal Love" series reaching 3,471 shows in Q3, a decrease of 11% year-over-year. Notably, performances in Hangzhou, Shanghai, and Guilin increased by 2%, 18%, and 10% respectively [2][3] - The company reported a total of 510 shows during the National Day holiday, receiving nearly 3 million visitors, setting a new record [2] Marketing and Sales - The company has increased its marketing efforts, leading to a rise in the sales expense ratio to 8.2%, an increase of 2.8 percentage points year-over-year. Various projects have launched promotional activities to attract visitors [3] Profit Forecast and Valuation - The company has adjusted its net profit forecasts for 2025-2027 down by 16.1%, 13.1%, and 13.8% to 903 million RMB, 1.075 billion RMB, and 1.185 billion RMB respectively. The corresponding EPS is projected to be 0.34, 0.41, and 0.45 RMB [4] - The target price has been adjusted to 9.84 RMB, down from 10.25 RMB, reflecting a 25x PE for 2025 [4][6]

Core Viewpoint - Songcheng Performance has made significant progress on its Qingdao and Taizhou projects, with a focus on ensuring high-quality openings in 2026 and potentially earlier in 2028, respectively [1] Group 1: Project Updates - The Qingdao Qian Guqing project has completed the main structure of the theater and complex, with ongoing construction of the parking lot [1] - The Taizhou project, originally scheduled to open in May 2028, is progressing well and may open earlier than planned [1] Group 2: Financial Insights - In the first three quarters, the company confirmed design and planning fees totaling 100 million yuan for the Qingdao and Taizhou projects [1] - Light asset income will be recognized in stages based on the work results submitted to the owners, with most service fees expected to be realized before the project openings [1]

Summary of Songcheng Performance Conference Call Company Overview - **Company**: Songcheng Performance - **Industry**: Cultural and Tourism Industry Key Points and Arguments Company Performance and Strategy - Songcheng Performance is expanding brand presence through celebrity interactions, influencer collaborations, and real NPCs to enhance the immersive experience in a challenging market environment [2][3] - The company plans to upgrade its Hangzhou location in 2026 for its 30th anniversary, focusing on hardware renovations, stage optimization, content enrichment, and technology enhancements to meet diverse demands and improve brand recognition [2][3] - In Q3 2025, revenue and profit declined due to reduced light-asset income, operational downturns in some projects, and rising costs. The company is addressing these challenges by accelerating project progress, renewing hardware and content, and investing in talent [2][4] Project Updates - The Qingdao light-asset project is on track for a July 2026 opening, with most service fees expected to be recognized before the opening [5][6] - The Taizhou project may open earlier than planned in May 2028, which will facilitate revenue recognition [2][5] - The Shanghai project has seen significant revenue growth in Q3 2025, driven by content innovation and marketing activities, with plans for further immersive upgrades [2][6] Market Strategies - The Xi'an project employs a "popularity-driven, scale-winning" strategy to expand its customer base through competitive content and pricing, enhancing the overall visitor experience [2][6][7] - The company is addressing the "high traffic but low revenue" phenomenon by innovating content, enhancing brand communication, and implementing flexible pricing mechanisms to improve long-term profitability [3][9] Other Projects and Future Plans - The Foshan project has shown strong initial performance despite challenges from external factors, with ongoing renovations to enhance content offerings [8] - The Sanya project has improved visitor satisfaction post-upgrade but faces challenges from overall consumer spending pressures [8] - The Lijiang project is countering regional market pressures through program innovation and diverse marketing activities [8] - The Jiuzhaigou project is adapting to changing travel patterns by enhancing brand exposure and interactive activities [8] Long-term Vision - Songcheng Performance aims to become a leader in the cultural performance industry, focusing on high-quality sustainable development over the next 3-5 years. This includes expanding project boundaries, improving existing project reputations, and exploring international market opportunities [15] Marketing and Brand Engagement - The company is leveraging a multi-channel marketing strategy, including collaborations with influencers and celebrities to enhance brand visibility and customer engagement [14] - The integration of various performance types and flexible pricing strategies aims to attract a broader audience and increase repeat visits [9][10] Financial Outlook - The company anticipates that the majority of service fees from the Qingdao project will be recognized before its opening, contributing positively to future revenue [6][8] Additional Important Insights - The company is committed to continuous innovation in content and marketing strategies to adapt to changing consumer behaviors and market conditions [9][10] - The focus on immersive experiences and interactive content is expected to enhance visitor satisfaction and drive repeat business [11][12]

Group 1: Company Performance and Challenges - The company has received a total of 1.1 billion visitors over 30 years, with nearly 39,000 performances of "Song City Eternal Love," making it the largest tourism performance in terms of audience numbers and show frequency globally [1][2] - In the third quarter, the company's revenue and net profit both declined year-on-year, attributed to reduced income from light asset businesses and fluctuations in regional tourism demand due to a challenging consumption environment [3][4] - The company recognizes the limitations of its 30-year-old theme park, including small area size and outdated facilities, necessitating a significant upgrade to meet evolving consumer demands [2][3] Group 2: Upgrade and Development Plans - The upgrade plan includes hardware renovations, stage optimizations, expansion of water viewing platforms, and the introduction of new interactive and immersive experiences [3] - The company aims to enhance its operational capacity and visitor experience while maintaining business continuity during the off-peak season [3] - Future projects, such as the Qingdao and Taizhou light asset projects, are progressing well, with the Qingdao project expected to open in July 2026 [6] Group 3: Marketing and Brand Strategy - The company has implemented various marketing strategies, including collaborations with celebrities and influencers, to enhance brand visibility and attract diverse visitor demographics [11][12] - The marketing efforts have resulted in a significant increase in brand awareness and customer engagement, with a 90% satisfaction rate reported for events featuring celebrities and influencers [16][17] - The company is focusing on a flexible pricing strategy and diverse event offerings to adapt to market changes and enhance profitability [11][12] Group 4: Future Outlook and Strategic Goals - The company is committed to becoming the world's leading cultural performance entity, with a focus on sustainable growth through content innovation and quality improvements [17] - Plans include expanding existing projects, exploring new opportunities in light and heavy asset developments, and enhancing the influence of Chinese culture both domestically and internationally [17] - The company aims to leverage its established projects to capture market share and improve customer loyalty through continuous upgrades and innovative experiences [17]

Core Insights - Songcheng Performance Development Co., Ltd. reported a decline in both revenue and net profit for the third quarter of 2025, indicating potential challenges in the company's financial performance [1]. Financial Performance - The company's operating revenue for the third quarter was approximately 753 million yuan, representing a year-on-year decrease of 9.94% [1]. - The net profit attributable to the parent company was around 354 million yuan, reflecting a year-on-year decline of 22.6% [1]. - The net profit after deducting non-recurring items was approximately 342 million yuan, which is a year-on-year decrease of 23.44% [1].

（文章来源：证券日报） 证券日报网讯 10月27日晚间，宋城演艺发布公告称，公司董事会决定聘任杨欢女士为公司副总裁。 ...

Core Insights - Songcheng Performance reported a revenue of 753 million yuan for Q3 2025, representing a year-on-year decline of 9.94% [2] - The net profit attributable to shareholders of the listed company was 354 million yuan, down 22.6% year-on-year [2] Financial Performance - Revenue: 753 million yuan, down 9.94% year-on-year [2] - Net Profit: 354 million yuan, down 22.6% year-on-year [2]