Phoenix Media(SH:601928) Guohai Securities·2024-09-11 11:11Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1][6][8]. Core Insights - The company's core business shows steady growth, with an improvement in the gross margin of the publishing segment [1][6]. - Despite a decline in net profit year-on-year, the company has maintained a stable dividend policy, with a dividend yield exceeding 4% over the past 12 months [5][6]. Revenue and Profit Summary - In H1 2024, the company achieved revenue of 7.236 billion yuan, a year-on-year increase of 0.80%, with a gross profit of 3.055 billion yuan, up 2.04% year-on-year [3][4]. - The gross margin for H1 2024 was 42.21%, an increase of 0.51 percentage points year-on-year [3]. - The net profit attributable to shareholders for H1 2024 was 1.224 billion yuan, a decrease of 21.51% year-on-year [3][4]. - The effective tax rate (ETR) for H1 2024 was 22.59%, with a notable drop in Q2 [3]. Segment Performance - The publishing segment reported revenue of 2.347 billion yuan in H1 2024, a slight decline of 1.75% year-on-year, while the gross margin improved by 4.38 percentage points [4]. - The distribution segment saw revenue of 5.892 billion yuan in H1 2024, reflecting a growth of 2.20% year-on-year [4]. Financial Forecast - The company is projected to achieve revenues of 13.830 billion yuan, 14.575 billion yuan, and 15.430 billion yuan for the years 2024, 2025, and 2026, respectively [6][7]. - The net profit attributable to shareholders is expected to be 1.865 billion yuan, 1.961 billion yuan, and 2.072 billion yuan for the same years [6][7]. - The earnings per share (EPS) are forecasted to be 0.73 yuan, 0.77 yuan, and 0.81 yuan for 2024, 2025, and 2026, respectively [6][7].