COL(SZ:300364) Soochow Securities·2024-08-31 16:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company's performance in the first half of 2024 was impacted by the deconsolidation of its subsidiary CMS, leading to a revenue decline of 29% year-on-year [1] - The newly launched overseas short drama platform Sereal+ has shown rapid revenue growth, with a month-on-month increase of over 50% from June to August 2024 [1] - The company has released multiple animated works and continues to develop new content, including AI-driven projects [1] Financial Performance Summary - Total revenue for 2024 is projected to reach 2,202 million yuan, representing a year-on-year growth of 56.28% [1] - The net profit attributable to the parent company is expected to be 9.7 million yuan in 2024, a significant decrease of 89.15% compared to the previous year [1] - The earnings per share (EPS) for 2024 is estimated at 0.01 yuan, with a price-to-earnings (P/E) ratio of 1,294.70 [1] Business Segment Analysis - Revenue from digital content licensing and related products in the first half of 2024 was 290 million yuan, down 10.3% year-on-year, with a gross margin of 15.8% [1] - The revenue from IP derivative development products was 160 million yuan, a decline of 48.5% year-on-year, with a gross margin of 37.7% [1] - The subsidiary CMS reported a revenue of 1.09 billion yuan in the first half of 2024, a substantial increase of 434% year-on-year [1] Future Projections - Revenue forecasts for 2024-2026 have been adjusted upwards due to the rapid growth of the Sereal+ platform, with expected revenues of 2,202 million yuan in 2024 and 3,496 million yuan in 2026 [1] - The company anticipates that as content investment increases, it will gradually achieve economies of scale and profitability [1]