MANGO(300413) 国信证券·2024-08-26 13:29Investment Rating - The investment rating for the company is "Outperform the Market" [4][11]. Core Insights - The company's revenue for the first half of 2024 reached 6.96 billion yuan, with a year-on-year growth of 2%, while the net profit attributable to shareholders was 1.065 billion yuan, showing a decline of 15% [5][6]. - The decline in net profit is primarily attributed to the expiration of tax exemption policies, which impacted earnings by 193 million yuan in the first half of the year [5][6]. - Membership revenue grew significantly by 27% year-on-year, reaching 2.486 billion yuan, driven by popular content and an innovative membership benefits system [5][6]. - The advertising business generated 1.721 billion yuan, a decrease of 4% year-on-year, but is expected to recover as the industry stabilizes [5][6]. - The company has launched over 300 membership benefits, enhancing the average revenue per paying user (ARPPU) [5][6]. Summary by Sections Financial Performance - In the first half of 2024, the company reported a net cash flow from operating activities of -180 million yuan, compared to 1.05 billion yuan in the same period last year, due to increased investment in content [5][6]. - The second quarter of 2024 saw revenue of 3.636 billion yuan and a net profit of 593 million yuan, with respective year-on-year growth of 0.1% and a decline of 15.1% [5][6]. Business Segments - Membership business revenue was 2.486 billion yuan, up 27% year-on-year, supported by hit shows like "Singer 2024" and "Riding the Wind 2024" [5][6]. - The advertising segment's revenue was 1.721 billion yuan, down 4% year-on-year, but expected to recover with improved marketing strategies and AI optimization [5][6]. - The content e-commerce segment saw a gross merchandise volume (GMV) of 6.65 billion yuan, growing nearly 50% year-on-year [5][6]. Content Development - The company launched 56 new variety shows in the first half of 2024, an increase of 17 shows compared to the previous year, maintaining the highest effective viewership in the industry [5][6]. - Upcoming key shows in the second half of 2024 are expected to further boost membership and advertising revenues, with over 80 films in reserve for future releases [5][6]. Future Outlook - The company maintains its profit forecast, projecting net profits of 1.96 billion yuan, 2.19 billion yuan, and 2.44 billion yuan for 2024, 2025, and 2026, respectively, with corresponding EPS of 1.05, 1.17, and 1.30 yuan [5][6].