Songcheng Performance(300144) 民生证券·2024-10-27 15:19Investment Rating - The report maintains a "Recommended" rating for Songcheng Performance (300144.SZ) with a target price of 9.83 CNY [3]. Core Views - The company reported a revenue of 2.013 billion CNY for the first three quarters of 2024, representing a year-on-year increase of 24.26%, and a net profit attributable to shareholders of 1.008 billion CNY, up 28.04% year-on-year [1]. - The report highlights that the high base from the previous year has put pressure on Q3 2024 performance, with revenue of 836 million CNY, a year-on-year increase of 4.69%, and a net profit of 457 million CNY, down 5.54% year-on-year [1]. - The report emphasizes the successful visitor reception during the National Day holiday, with over 2.6 million visitors across 13 major scenic spots, a 159.7% increase compared to the previous year [1]. - The company is expected to benefit from the maturation of existing projects and the contribution of new projects, with a focus on three growth points: ongoing project preparations, growth potential of existing projects, and the new Zhuhai project targeting the leisure vacation market [1]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a gross margin of 71.87% and a net margin of 50.05%, with investment income turning positive at 30 million CNY compared to a loss of 28 million CNY in the same period last year [1]. - The report forecasts revenues of 2.385 billion CNY, 2.659 billion CNY, and 2.871 billion CNY for 2024, 2025, and 2026 respectively, with corresponding net profits of 1.078 billion CNY, 1.242 billion CNY, and 1.379 billion CNY [2][4]. - The projected PE ratios for 2024, 2025, and 2026 are 24x, 21x, and 19x respectively, indicating a positive outlook for the company's earnings growth [2][4]. Operational Insights - The report notes that the increase in various expense ratios in Q3 2024 was offset by improved net profit growth due to the recovery in investment income [1]. - The company is expected to leverage its established brand influence and revenue growth potential from multiple projects still in preparation or awaiting opening [1]. - The report suggests that the core holiday activities and the rapid iteration of events will likely become a strong driver for future customer traffic growth [1].