Enlight Media(300251) CSC SECURITIES (HK) LTD·2024-10-03 23:00Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to less than 35% [4][8]. Core Insights - The company has a robust pipeline of film projects, with over 50 films expected to be released in the near future, including notable titles like "The Legend of Nezha" and "Big Fish & Begonia 2" [4]. - The performance of the company significantly improved in the first half of 2024, with revenue reaching RMB 1.334 billion, a year-on-year increase of 120.43%, and net profit of RMB 473 million, up 133.14% [4]. - The animation film sector is poised for growth, with the anticipated release of sequels to popular IPs, which could further enhance the company's performance in 2025 [4]. - The integration of AI technology in animation production is expected to improve efficiency and reduce costs, potentially allowing the company to produce 4-5 films annually [4]. Financial Summary - The company is projected to achieve net profits of RMB 695 million, RMB 1.08 billion, and RMB 1.38 billion for the years 2024, 2025, and 2026, respectively, with year-on-year growth rates of 66.33%, 55.34%, and 28.06% [5]. - Earnings per share (EPS) are expected to be RMB 0.24, RMB 0.37, and RMB 0.47 for the same years, with corresponding price-to-earnings (P/E) ratios of 30, 21, and 17 [5]. - The company’s dividend per share (DPS) is projected to increase from RMB 0.10 in 2023 to RMB 0.40 in 2026, reflecting a growing dividend yield [5].