MANGO(300413) 国金证券·2024-08-22 03:00Investment Rating - The report maintains a "Buy" rating for the company, with expected net profits for 2024-2026 at 2.0 billion, 2.29 billion, and 2.53 billion RMB respectively, corresponding to PE ratios of 19.6, 16.2, and 14.7 [1][3]. Core Insights - The company reported H1 2024 revenue of 6.96 billion RMB, a year-on-year increase of 2.5%, while net profit attributable to the parent company was 1.06 billion RMB, down 15.5% year-on-year [1]. - Membership business showed double-digit growth, with revenue of 2.49 billion RMB in H1 2024, up 26.8% year-on-year, driven by popular content and an innovative membership rights system [1]. - Advertising revenue in H1 2024 was 1.72 billion RMB, down 3.9% year-on-year, but the decline rate is stabilizing [1]. - The operator business faced short-term pressure with revenue of 0.75 billion RMB, down 46.0% year-on-year, due to regulatory adjustments in the television industry [1]. - Content e-commerce revenue reached 1.36 billion RMB, an increase of 8.7% year-on-year, with significant growth in GMV for Xiaomang e-commerce [1]. - The net profit margin was affected by changes in tax incentives, with a net profit margin of 15.3% and a non-deductible net profit margin of 13.1% in H1 2024, both down year-on-year [1]. Summary by Sections Revenue Analysis - Membership revenue grew significantly, contributing to overall revenue growth despite declines in advertising and operator segments [1]. - The company is expected to launch over 300 high-quality short dramas and several key variety shows in the second half of the year, enhancing content offerings [1]. Profitability Forecast - The report projects a recovery in profitability with net profit estimates for 2024-2026 showing a positive trend, indicating a potential turnaround in financial performance [1][3]. Financial Metrics - The company’s financial metrics indicate a decrease in net profit margin and an increase in tax burden, which are critical factors to monitor in the upcoming quarters [1].