SFC(SH:601595) Soochow Securities·2024-09-04 16:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's main business is impacted by the overall film market, but its IP business is experiencing rapid revenue and profit growth [1] - In H1 2024, the company's revenue increased by 2.4% year-on-year to 380 million yuan, with a gross margin rise of 2.1 percentage points to 26.7% [1] - The company's net profit attributable to shareholders grew by 4.9% year-on-year to 69.08 million yuan, while the non-recurring net profit increased by 84.9% to 43.08 million yuan [1] Revenue and Profit Forecasts - Total revenue is projected to reach 811.16 million yuan in 2024, with a year-on-year growth of 2% [1] - Net profit attributable to shareholders is expected to be 164.53 million yuan in 2024, reflecting a year-on-year increase of 29.57% [1] - The report adjusts the net profit forecasts for 2024-2026 from 260 million, 420 million, and 530 million yuan to 160 million, 280 million, and 380 million yuan respectively [1] Business Segment Performance - The film screening and other businesses saw a revenue decline of 23.6% to 280 million yuan in H1 2024, accounting for 70% of total revenue [1] - The cinema line business revenue increased by 205.1% to 26.3 million yuan, with a gross margin improvement of 59.4 percentage points to 57.2% [1] - The IP licensing business generated 64.05 million yuan in revenue, representing 15.9% of total revenue with a gross margin of 65.9% [1] Market Context - The domestic film market's total box office decreased by 9.5% year-on-year to 23.77 billion yuan in H1 2024, negatively affecting the company's cinema operations [1] - The company's cinema market share decreased by 0.9 percentage points to 7.4%, ranking fourth nationally [1] IP Business Development - The company's IP development business saw revenue and profit growth exceeding 100% in H1 2024, with a subsidiary achieving a net profit margin of 33% [1] - Future product pipelines include collaborations on games and animated films based on popular IPs, which are expected to enhance the IP's commercial value [1]