SPM(SH:601900) CHINA DRAGON SECURITIES·2024-09-09 09:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown steady development in its main business, with a focus on building an "AI + Education" ecosystem [1] - The company reported a revenue of 4.025 billion yuan for the first half of 2024, a year-on-year decrease of 0.83%, and a net profit attributable to shareholders of 299 million yuan, down 27.22% year-on-year [1] - The company is actively promoting specialized and branded reforms in public publishing, with notable sales success in its general book business, particularly with the book "My Alashan" by Li Juan, which has sold over one million copies [1] - The company is expanding its new business lines, with the "Le Fu Culture" publishing new titles and ensuring the supply of textbooks for the spring semester [1] Financial Summary - Revenue projections for 2024-2026 are 9.665 billion yuan, 10.013 billion yuan, and 10.363 billion yuan, respectively [3] - Expected costs for the same period are 6.843 billion yuan, 7.039 billion yuan, and 7.151 billion yuan [3] - The projected gross margins for 2024-2026 are 29.2%, 29.7%, and 31% [3] - The net profit attributable to shareholders is expected to be 949 million yuan, 1.022 billion yuan, and 1.204 billion yuan for 2024-2026 [3] - The company maintains a stable profitability with a gross margin of 34.21% in the first half of 2024, an increase of 2.74 percentage points year-on-year [1] Comparable Company Analysis - The company is compared with similar businesses such as Phoenix Media, Zhongnan Media, Shandong Publishing, and CITIC Publishing, showing a favorable outlook for steady growth and new business expansion [3] - The current stock price corresponds to a PE ratio of 12, 11.1, and 9 times for 2024-2026 [3]