Changjiang Media(600757) 国泰君安·2024-10-30 12:46Investment Rating - The report maintains a "Buy" rating for Changjiang Publishing (600757) [2][4]. Core Views - The company's Q3 performance met expectations, with significant growth in its publishing and distribution business, leading to a notable increase in pre-tax profit by 11.8% year-on-year [2]. - The report forecasts EPS for 2024-2026 to be 0.65, 0.71, and 0.78 yuan respectively, with a target price of 9.29 yuan, reflecting a 14x PE for 2024 [2]. - The publishing and distribution business saw a strong growth momentum, with a combined revenue of 17.19 billion yuan in Q3, up 17.74% year-on-year [2]. Financial Summary - For Q3 2024, the company achieved a revenue of 52.19 billion yuan, a year-on-year increase of 3.48%, while the net profit attributable to shareholders was 6.89 billion yuan, down 18.03% [2][3]. - The gross margin for the publishing and distribution business was 61.0%, with a year-on-year decline of 2 percentage points, but the high revenue growth resulted in a 15.61% increase in gross profit [2]. - The company’s operating income is projected to grow from 6,295 million yuan in 2022 to 8,161 million yuan in 2026, with a compound annual growth rate of approximately 6.8% [3]. Market Data - The current stock price is 8.35 yuan, with a 52-week price range of 6.43 to 9.49 yuan [4][5]. - The total market capitalization is approximately 10,134 million yuan, with a total share capital of 1,214 million shares [5]. Valuation Metrics - The company’s price-to-earnings ratio (PE) is currently at 13.02, with a projected PE of 12.80 for 2024 [3][10]. - The price-to-book ratio (PB) stands at 1.1, indicating a reasonable valuation relative to its book value [6]. Comparative Analysis - Compared to peers, Changjiang Publishing's valuation metrics are competitive, with a PE of 13.02 against an industry average of approximately 10.31 [10].