Songcheng Performance(300144) 长江证券·2024-09-02 10:41Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - In the first half of 2024, the company achieved operating revenue of 1.177 billion yuan, a year-on-year increase of 59%, and a net profit attributable to the parent company of 550 million yuan, up 81.75% year-on-year. The company is expected to focus on its core performing arts business while optimizing existing projects and nurturing new ones for long-term growth [4][5]. Summary by Sections Financial Performance - In H1 2024, the company reported operating revenue of 1.177 billion yuan, a 59% increase year-on-year, and a net profit of 550 million yuan, reflecting an 81.75% growth compared to the previous year [4][5]. - The company’s gross profit margin and net profit margin were 69.19% and 47.62%, respectively, with year-on-year increases of 5.24 and 6.9 percentage points [5]. Market and Industry Context - The domestic cultural tourism market showed steady improvement in H1 2024, with domestic travel reaching 2.725 billion trips, a 14.3% increase year-on-year, and total spending of 2.73 trillion yuan, up 19% year-on-year [4]. - New projects, such as the Guangdong Qian Guqing, have performed exceptionally well, with record-breaking daily performances and high visitor engagement [4]. Project Development - Existing projects are undergoing continuous upgrades, with notable enhancements in Shanghai and Xi'an, aimed at improving visitor experience and operational efficiency [4]. - The company is expected to complete potential impairment provisions for its flower house assets, allowing it to focus on its core business and optimize its project portfolio [5]. Profitability Forecast - The company forecasts net profits attributable to the parent company of 1.261 billion, 1.498 billion, and 1.610 billion yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 16, 14, and 13 times [5].