WANXIN MEDIA(SH:601801) Guoyuan Securities·2024-08-31 04:40Investment Rating - The report maintains a "Buy" rating for the company [3][7]. Core Views - The company's core business remains stable, and the announcement of a three-year dividend plan boosts investor confidence. In H1 2024, the company reported a revenue of 5.213 billion yuan, a year-on-year decrease of 13.59%, and a net profit attributable to shareholders of 579 million yuan, down 20.09% year-on-year. The decline is primarily attributed to the education equipment and supply chain businesses [1]. - The education services segment generated a revenue of 4.722 billion yuan, a slight decrease of 1.98% year-on-year, while the cultural services segment reported a revenue of 953 million yuan, down 4.93% year-on-year. The company operates 804 bookstores across multiple regions and has made significant progress in its e-commerce initiatives [1]. - The company is enhancing its supply chain and logistics capabilities and exploring new business models in the gaming sector, including the development of a distribution platform targeting B-end clients [1]. Summary by Sections Financial Performance - In H1 2024, the company achieved a revenue of 5.213 billion yuan, down 13.59% year-on-year, and a net profit of 579 million yuan, down 20.09% year-on-year. The second quarter saw a revenue of 2.284 billion yuan, a decrease of 22.19% year-on-year and 22.01% quarter-on-quarter [1]. - The company has set a three-year dividend return plan, committing to annual profit distribution when conditions are met, which is expected to enhance investor confidence [1]. Business Segments - The education services division reported a revenue of 4.722 billion yuan with a gross margin of 21.99%, while the cultural services division generated 953 million yuan with a gross margin of 15.15% [1]. - The modern logistics division's revenue was 1.782 billion yuan, down 19.24% year-on-year, but with an improved gross margin of 3.93% [1]. Future Outlook - The company is expected to maintain a stable performance in its core educational materials and services, with projections for net profit attributable to shareholders of 810 million yuan, 940 million yuan, and 1.08 billion yuan for 2024, 2025, and 2026 respectively [2][3]. - The earnings per share (EPS) are forecasted to be 0.41 yuan, 0.47 yuan, and 0.54 yuan for the same years, corresponding to price-to-earnings ratios of 16, 14, and 12 times [2][3].