SPM(SH:601900) Xin Lang Cai Jing·2025-04-29 02:35Core Viewpoint - The company reported a decline in revenue for 2024 but showed significant growth in net profit, driven by non-recurring gains from tax incentives and improved gross margins [1][2]. Financial Performance - 2024 revenue was 9.172 billion, down 2.07% year-over-year, with net profit at 810 million, a decrease of 36.91% compared to previous estimates [1] - Q1 2025 revenue reached 2.113 billion, up 1.21% year-over-year, with net profit soaring to 320 million, an increase of 110.25% [1] - The company plans to distribute a cash dividend of 0.55 per share, yielding a dividend rate of 3.48% based on the closing price on April 25 [1] Gross Margin and Cost Management - The overall gross margin for 2024 was 33.54%, an increase of 1.71 percentage points, attributed to lower paper costs and optimized management expenses [2] - Q1 2025 gross margin improved to 38.16%, up 4.12 percentage points, due to price increases on educational materials and continued reductions in paper costs [2] - The expense ratios for sales, management, R&D, and finance remained stable, indicating effective cost control [2] Digital Development - The company launched the "Yuejiao Xiangyun Digital Textbook Application Platform," making digital textbooks part of the free teaching materials, establishing a regular supply mechanism for digital textbooks [3] - The company was recognized as a national technology-based small and medium-sized enterprise, with two projects awarded the Guangdong Provincial Science and Technology Progress Award [3] Publishing Achievements - In 2024, the company published 5,291 types of popular books, 193 audio-visual products, and 453 electronic publications, reflecting a commitment to high-quality development [4] - General book publishing achieved sales of 4.247 billion, marking a growth of 51.61% [5] Profit Forecast and Valuation - Adjustments to net profit forecasts for 2025-2027 are 1.12 billion, 1.266 billion, and 1.42 billion, reflecting increases of 13.36% and 17% for 2025-2026 [6] - The company is assigned a target price of 20, based on a 16X PE valuation for 2025, maintaining a "buy" rating [6]