Citic Press(SZ:300788)2024-07-19 10:02Investment Rating - The report maintains a rating of "Accumulate" for the company [8]. Core Insights - The company is positioned as a leader in mass publishing, leveraging advantages in niche segments and actively embracing new technologies such as artificial intelligence to support steady growth in performance [12]. - The publishing industry has experienced a wave-like development since 2020, with a 6.20% year-on-year decline in the overall book market in the first half of 2024, although the decline has narrowed in the second quarter due to e-commerce promotions [5]. - The company has launched a digital transformation strategy, introducing a new smart publishing system and various digital platforms to enhance reader interaction and content delivery [6][7]. Summary by Sections Market Performance - The overall book market saw a 6.20% decline in the first half of 2024, with traditional channels under significant pressure, while short video e-commerce channels grew by 18.34% [5]. - The company has achieved market leadership in management, psychology, and biography categories, while also ranking second in children's and natural science categories [7]. Financial Projections - Revenue forecasts for 2024-2026 are projected at 1.837 billion, 1.936 billion, and 2.021 billion yuan respectively, with net profits expected to be 119 million, 144 million, and 171 million yuan [12]. - The company anticipates a growth rate of 6.98% in 2024, followed by 5.39% and 4.42% in the subsequent years [13]. Strategic Initiatives - The company is focusing on integrating traditional and modern publishing to create a new ecosystem, including the launch of a digital reading platform and an AI author project [6]. - Collaborations with popular IPs and the establishment of dedicated business units for various genres, including anime and manga, are part of the company's strategy to capture market share [7].