SFC(SH:601595) KAIYUAN SECURITIES·2024-10-31 06:37Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report emphasizes the recovery of the film market and the ongoing development of major IPs as key drivers for growth. Despite a decline in overall market performance, the company's revenue and net profit have decreased at a slower rate compared to the market, indicating resilience [3][4]. - The company is expected to benefit from the release of high-quality films, which could drive the recovery of its cinema business. Upcoming films such as "Fengshen Part II: The War of Xiqi" and "Boonie Bears: Rebooting the Future" are anticipated to perform well at the box office [4]. - The company's "Big IP Development" strategy is progressing, with plans to enhance IP innovation and diversify monetization channels. Collaborations with other entities are aimed at expanding the company's market reach and enhancing its IP monetization matrix [5]. Financial Summary - For the first three quarters of 2024, the company achieved revenue of 560 million yuan (down 11.07% year-on-year) and a net profit of 107 million yuan (down 13.74% year-on-year). The third quarter saw revenue of 179 million yuan (down 30.52% year-on-year, up 4.67% quarter-on-quarter) and a net profit of 38 million yuan (down 34.68% year-on-year, up 66.87% quarter-on-quarter) [3]. - The report projects the company's net profit for 2024-2026 to be 139 million, 249 million, and 335 million yuan respectively, with corresponding EPS of 0.31, 0.56, and 0.75 yuan. The current stock price corresponds to P/E ratios of 81.6, 45.5, and 33.9 times for the respective years [3][6].