M&G(SH:603899) Xin Lang Cai Jing·2025-11-01 00:38Core Insights - The company reported a revenue of 17.328 billion yuan for the first three quarters of 2025, a year-on-year increase of 1.25%, while the net profit attributable to shareholders was 949.8 million yuan, a decrease of 7.18% [1] - In Q3 2025, the company achieved a revenue of 6.519 billion yuan, representing a year-on-year growth of 7.52%, and a net profit of 391 million yuan, an increase of 0.63% [1] Traditional Business Recovery - The traditional core business showed signs of recovery in Q3, with a focus on product development and optimization of product structure, enhancing the presence of popular products in key terminals [2] - The company established a strategic partnership with Tencent Video to launch new co-branded products based on popular domestic IPs, receiving positive market feedback [2] - The company is actively expanding into overseas markets, particularly in Africa and Southeast Asia, to deepen local market penetration [2] Performance of Sub-brands - Morning Glory's subsidiary, Keli Pu, reported a revenue of 9.691 billion yuan for the first three quarters, a year-on-year increase of 5.83%, with Q3 revenue reaching 3.562 billion yuan, up 17.3% [2] - The growth in Keli Pu is attributed to the gradual recovery of office procurement business and the acquisition of new clients [2] Retail Expansion - Morning Glory Life Hall, including Jiwu Miscellaneous Society, generated a revenue of 1.194 billion yuan in the first three quarters, a year-on-year increase of 6.85%, with Q3 revenue of 415 million yuan, up 6.6% [3] - Jiwu Miscellaneous Society expanded its store count by nearly 40 in Q3, bringing the total to 870 retail stores nationwide [3] - The membership system has grown to over 10 million members, enhancing customer engagement and attracting younger consumers [3] Technology Division Performance - Morning Glory Technology achieved a revenue of 967 million yuan in the first three quarters, a year-on-year increase of 9.66%, with Q3 revenue of 411 million yuan, up 3.0% [4] - The slowdown in online business growth is attributed to high base effects and increased online advertising costs [4] Product Performance - The sales figures for various product categories in the first three quarters were as follows: writing tools (1.991 billion yuan), student stationery (2.578 billion yuan), office stationery (2.300 billion yuan), and direct sales (9.691 billion yuan) [4] - The gross margins for writing tools, student stationery, and office stationery improved, indicating benefits from product structure optimization and efficiency improvements [4] Profitability Analysis - In Q3 2025, the company's gross margin and net margin were 19.89% and 6.20%, respectively, reflecting a slight decline due to increased expenses [5][6] - The company is focusing on transforming its traditional business from quantity to quality, optimizing channels, and enhancing profitability [6] Investment Outlook - The company is transitioning from a stationery leader to a cultural creative giant, with expectations for revenue growth in the coming years [7] - Revenue projections for 2025-2027 are adjusted to 25.343 billion, 28.080 billion, and 30.804 billion yuan, with net profits of 1.419 billion, 1.584 billion, and 1.751 billion yuan, respectively [7]