XMGF(SZ:300770) GOLDEN SUN SECURITIES·2024-10-28 00:10Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company reported a revenue of 1.174 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 5.94%. However, the net profit attributable to shareholders decreased by 14.38% to 428 million yuan due to the loss of corporate income tax exemptions starting in 2024 [1]. - The IPTV business is expected to continue its growth trajectory, supported by government policies promoting the upgrade of smart set-top boxes and high-definition content delivery [2]. - The company is enhancing its content production and operational capabilities, expanding its content library, and actively engaging in partnerships to strengthen its market position [3]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 403 million yuan, a slight increase of 0.26% year-on-year, while the net profit attributable to shareholders was 150 million yuan, down 12.07% year-on-year. The gross margin and net margin for the first three quarters were 49.31% and 36.41%, respectively, both showing a decline compared to the previous year [1]. - The company’s operating expenses remained stable, with sales, management, and R&D expense ratios at 2.21%, 3.15%, and 3.15%, respectively [1]. Business Development - The company is the only IPTV integrated broadcasting and control platform operator in Guangdong province, maintaining stable collaborations with major telecom operators. It is actively promoting its "喜粤 TV" brand through various marketing initiatives [2]. - The report highlights the company's focus on content refinement and user engagement strategies to enhance the conversion rate of paid users in its internet audiovisual business [2]. Content and Copyright - The company is expanding its content matrix through strategic partnerships and projects, including collaborations with notable directors and institutions to produce high-quality content [3]. - The company is also exploring opportunities in the provincial IPTV market and enhancing its cable TV value-added services [3]. Profit Forecast - The profit forecast has been adjusted, with expected net profits for 2024, 2025, and 2026 projected at 570 million, 620 million, and 660 million yuan, respectively. The current market capitalization corresponds to a price-to-earnings ratio of 17, 15, and 14 times for the respective years [3].