MANGO(SZ:300413) KAIYUAN SECURITIES·2024-08-22 08:43Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The report highlights that the company's revenue is steadily increasing, driven by popular variety shows that boost membership income. The report also emphasizes the importance of content reserves being released in the second half of 2024 [4][6] Financial Performance Summary - In H1 2024, the company's operating revenue was 6.96 billion yuan, a year-on-year increase of 2.46%. The net profit attributable to the parent company was 1.065 billion yuan, a year-on-year decrease of 15.45% [4] - In Q2 2024, the operating revenue was 3.636 billion yuan, a year-on-year decrease of 1.52%, with a net profit of 593 million yuan, down 16.68% year-on-year. The decline in profit is mainly due to the decrease in gross margin of Mango TV and changes in corporate income tax policies [4] - The report maintains profit forecasts for 2024-2026, predicting net profits of 1.918 billion yuan, 2.180 billion yuan, and 2.381 billion yuan respectively, with corresponding EPS of 1.03 yuan, 1.17 yuan, and 1.27 yuan [4] Business Segment Performance - The internet video business revenue in H1 2024 was 4.957 billion yuan, a year-on-year decrease of 3.57%, with a gross margin of 36.11%, down 6.56 percentage points. Membership revenue increased by 26.8% to 2.49 billion yuan, while advertising and operator business revenues decreased by 3.8% and 46.0% respectively [5] - The company launched 56 variety shows in H1 2024, which is an increase of 17 shows compared to the previous year. The show "Singer 2024" achieved the highest ratings among provincial satellite TV stations, contributing to membership revenue growth [5] - The content e-commerce business generated 1.357 billion yuan in revenue, a year-on-year increase of 8.74%, with a gross margin of 2.70% [5] Content Pipeline - The company has a rich reserve of over 80 film and television dramas and variety shows scheduled for release in H2 2024, which may drive performance recovery. Upcoming shows include "The Four Seasons of Struggle 4" and "The Flower Blooms" [6]