MANGO(SZ:300413) Orient Securities·2024-08-23 14:11Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 21.16 CNY based on a 23x PE for 2024 [4][6]. Core Views - The company's revenue for Q2 2024 was 3.64 billion CNY, showing a year-on-year decline of 1.5% but a quarter-on-quarter increase of 9.4%, driven by popular shows like "Singer 2024" and "Riding the Wind 2024" [3]. - The gross margin for Q2 2024 was 29%, down 7.9 percentage points year-on-year but up 0.4 percentage points quarter-on-quarter [3]. - The net profit attributable to the parent company for Q2 2024 was 590 million CNY, reflecting a year-on-year decrease of 17% but a quarter-on-quarter increase of 25% [3]. - The company is expanding its popular content IP matrix, which is expected to stabilize traffic and enhance profitability [4]. Financial Summary - The company's revenue is projected to grow from 14.63 billion CNY in 2023 to 19.05 billion CNY by 2026, with a compound annual growth rate (CAGR) of approximately 9.8% [1]. - Operating profit is expected to increase from 1.82 billion CNY in 2023 to 2.60 billion CNY in 2026, reflecting a steady growth trajectory [1]. - The net profit attributable to the parent company is forecasted to decline significantly in 2024 to 1.73 billion CNY, before recovering to 2.28 billion CNY by 2026 [1]. - The earnings per share (EPS) is expected to decrease from 1.90 CNY in 2023 to 0.92 CNY in 2024, before gradually increasing to 1.22 CNY in 2026 [1]. Revenue Breakdown - New media operations revenue for H1 2024 was 4.96 billion CNY, down 3.6% year-on-year, with a gross margin of 36.1% [3]. - Membership revenue for H1 2024 reached 2.49 billion CNY, up 27% year-on-year, driven by popular shows and the introduction of the 88VIP membership system [3]. - Advertising revenue for H1 2024 was 1.72 billion CNY, down 4% year-on-year, indicating a sluggish recovery in the advertising industry [3]. - The company's content e-commerce revenue for H1 2024 was 1.36 billion CNY, up 9% year-on-year, with a gross margin of 2.7% [3].