Funshine Culture(SZ:300860) Xin Lang Cai Jing·2025-05-21 12:47Core Insights - The company reported a revenue of 579 million yuan in 2024, a year-on-year decrease of 14.42%, with a net profit attributable to shareholders of 41.77 million yuan, proposing a cash dividend of 2.1 yuan per 10 shares, a decline of 68.94% compared to the previous year [1] - In Q1 2025, the company achieved a revenue of 94 million yuan, a significant year-on-year increase of 171.12%, but reported a net loss of 1.32 million yuan [1] Financial Performance - The gross margin for 2024 was 32.14%, down by 5.23 percentage points year-on-year; the gross margin for large cultural performance business was 28.65%, down by 8.80 percentage points, while the cultural tourism performance business gross margin was 34.22%, down by 0.96 percentage points [2] - The expense ratios increased, with sales expense ratio at 3.51% (up 1.31 percentage points), management expense ratio at 8.61% (up 1.53 percentage points), and R&D expense ratio at 6.52% (up 0.81 percentage points) [2] - As of the end of 2024, the company had an order backlog of 368 million yuan, including 87.88 million yuan for large cultural performance projects and 280 million yuan for cultural tourism performance projects [2] Business Strategy - The company has been optimizing its revenue structure by expanding into C-end businesses since 2022, focusing on immersive experiences and live performances [3] - In 2024, the Shanghai Liusan project generated revenue of 32.20 million yuan with a net profit of 7.67 million yuan; other projects included the Hangzhou immersive performance and Qingdao panoramic show [3] - The company is integrating technology into its offerings, utilizing AR, 3D technology, and drone performances to enhance user experience and create new online cultural entertainment content [3] Industry Outlook - The "first launch economy" has been identified as a key task in the 2024 Central Economic Work Conference, which aims to boost domestic demand through innovative consumption scenarios, positioning cultural tourism as a prime area for growth [4] - The performance industry is seen as a crucial driver for deepening the integration of culture and tourism, with a strong recovery in tourism consumption positively impacting related investments and innovations [4] - The tourism economic prosperity index increased by 2.1% year-on-year, indicating a steady upward trend in the industry [4] Investment Perspective - The company is recognized as a leading player in the digital performance content production sector, with a highly skilled team and project qualifications [5] - Revenue projections for 2025-2027 are estimated at 693 million, 783 million, and 866 million yuan, with net profits of 140 million, 153 million, and 167 million yuan respectively [5] - The estimated EPS for 2025-2027 is projected to be 0.73, 0.80, and 0.87 yuan, with corresponding PE ratios of 36, 33, and 30 times based on the closing price of 26.19 yuan per share on May 21, 2025 [5]