XMGF(SZ:300770) HTSC·2024-08-31 10:08Investment Rating - The investment rating for the company is maintained at "Buy" with a target price of RMB 40.05 [1]. Core Views - The company reported a revenue of RMB 771 million for H1 2024, representing a year-on-year increase of 9.16%, while the net profit attributable to shareholders was RMB 278 million, a decrease of 15.58% year-on-year [1]. - The company plans to distribute a cash dividend of RMB 8.00 per 10 shares, totaling RMB 180 million [1]. - The forecasted net profits for 2024-2026 are RMB 612 million, RMB 633 million, and RMB 650 million respectively [1]. Summary by Sections IPTV Core Business - The IPTV core business revenue reached RMB 419 million in H1 2024, an increase of 13.32% year-on-year, with effective users reaching 20.29 million, up 2.42% [2]. - The company continues to strengthen its content and product operations while expanding its user market through various brand activities [2]. IPTV Value-Added and Internet TV Business - The revenue from the internet audio-visual business was RMB 303 million, a year-on-year increase of 5.19% [3]. - The value-added IPTV business revenue was RMB 191 million, a decrease of 1.70% [3]. - The company has enhanced the operation of its cloud audio-visual products, with effective users of its cloud audio-visual series apps reaching 248 million, a slight decrease of 0.4% [3]. Financial Metrics - The company's gross margin for H1 2024 was 50.05%, down 2.98 percentage points year-on-year, primarily due to a decrease in the proportion of higher-margin IPTV value-added services [3]. - The comprehensive income tax rate increased to 14.12%, up 13.48 percentage points year-on-year, due to tax policy adjustments [3]. Earnings Forecast and Valuation - The projected operating revenue for 2024 is RMB 1.561 billion, with a year-on-year growth of 2.44% [4]. - The expected net profit attributable to shareholders for 2024 is RMB 612.3 million, reflecting a decline of 13.48% [4]. - The company is valued at a PE ratio of 15x for 2024, with a target price of RMB 40.05 based on this valuation [1][4].