Core Viewpoint - CICC maintains its Non-IFRS net profit forecasts for the year 2025 and 2026 for the company, with a target price of HKD 43.5, indicating a potential upside of 39.4% from the current price [1] Group 1: Financial Performance - The company reported a revenue of CNY 3.191 billion for 1H25, with a Non-IFRS net profit of CNY 508 million, aligning closely with CICC's expectations [1] - Excluding the impact of New Classics Media, the Non-IFRS net profit from other businesses grew by 35.7% year-on-year in 1H25 [1] - The gross margin for 1H25 was 50.5%, reflecting a slight increase of 0.5 percentage points year-on-year [3] Group 2: Online Business and IP Operations - Online business revenue for 1H25 was CNY 1.985 billion, showing a modest year-on-year growth of 2.3%, with proprietary platform product revenue increasing by 3.1% [2] - The IP operations and other revenue for 1H25 amounted to CNY 1.205 billion, with the GMV for IP derivative products reaching CNY 480 million, nearing last year's total of CNY 500 million [2] Group 3: Cost Management and One-time Gains - The company experienced a decrease in sales expenses due to fewer film and television projects in 1H25, leading to reduced promotional and advertising costs [3] - A net gain of CNY 580 million from the deemed disposal of invested companies was recorded, which is considered a one-time item with minimal impact on Non-IFRS net profit [3] Group 4: Content and IP Development - New Classics Media has a rich reserve of series for the year, including titles like "The Drug Storm" and plans for various short dramas and IP derivative products [4] - The company plans to enhance its short drama business and has already seen significant revenue from individual short drama projects [4] - The company is focusing on multi-faceted development of its IP resources, with plans to launch related merchandise for popular IPs in the second half of 2025 [4]
中金：维持阅文集团(00772)跑赢行业评级 目标价43.5港元