MANGO(300413) ZHONGTAI SECURITIES·2024-10-28 06:01Investment Rating - The report assigns an "Accumulate" rating for the company, marking the first coverage [1]. Core Insights - The company, Mango TV, is a state-owned new media platform focusing on internet video, interactive entertainment content production, and content e-commerce, being the only state-controlled long-video new media company in the A-share market. The company has shown good cost control and steady performance, with a net profit of 3.56 billion yuan in 2023 and a net profit margin of 24.3% [1][9]. - The online video industry is steadily growing, with a focus on improving profitability. The collaboration between long and short video formats is deepening, enhancing content supply to increase user stickiness. Membership fees are gradually increasing, and the internet advertising market is expected to recover [2][18]. - The company is continuously solidifying its content moat and exploring diversified monetization paths, including membership, advertising, operator partnerships, and AI integration [3][18]. Financial Forecast and Valuation - The company is projected to achieve revenues of 15.07 billion yuan in 2024, with a year-on-year growth of 2.99%, and net profits of 1.91 billion yuan, reflecting a decrease of 46.43% due to tax policy changes. The P/E ratios for 2024, 2025, and 2026 are estimated at 26.3x, 23.7x, and 21.4x respectively [3][2]. - The company has maintained a high gross profit margin, primarily driven by its internet video business, which accounted for 90.9% of the gross profit in 2023 [12][14]. Company Overview - Mango TV is actively expanding its ecological matrix as a new type of mainstream media group backed by state capital. The company has undergone significant restructuring and development since its establishment in 2005, with a focus on integrating traditional and new media [9][10]. - The company has a total share capital of 1,870.72 million shares, with a market price of 26.80 yuan, resulting in a market capitalization of approximately 50.14 billion yuan [1]. Industry Analysis - The online video market is experiencing steady growth, with the user base becoming increasingly stable. The mobile internet monthly active users (MAU) reached 1.24 billion in June 2024, growing by 1.8% year-on-year [18][19]. - The advertising market is expected to recover alongside macroeconomic improvements, with the internet advertising market projected to reach 351.4 billion yuan in the first half of 2024 [27][28]. Operational Analysis - The company has effectively controlled sales expenses, leading to a decrease in the sales expense ratio while maintaining stable management and R&D expense ratios. The net profit margin has improved, particularly in 2023 due to one-time non-recurring gains [14][15]. - The company’s operating cash flow has shown significant growth, reaching 1.08 billion yuan in 2023, a 96.5% increase, primarily due to increased cash receipts from operating projects [15][16].