ZDDC(600633)2024-11-01 12:30Investment Rating - The report maintains a "Buy" rating for the company [4][9]. Core Views - The company reported a significant increase in profits for Q3 2024, primarily driven by investment income from its indirect stake in a media company that successfully listed on the Growth Enterprise Market, resulting in an investment gain of 141 million yuan [2]. - The company’s revenue for the first three quarters of 2024 was 2.169 billion yuan, a year-on-year decrease of 5.20%, while the net profit attributable to shareholders was 475 million yuan, down 31.38% year-on-year [2]. - The digital culture segment is focusing on premium operations, with the launch of offline centers for its flagship product, indicating a strategy to integrate online and offline markets [3]. - The company has made strategic partnerships in the digital technology sector, enhancing its service capabilities and expanding its business scope [3]. - The completion of the equity restructuring of the Zhejiang Big Data Trading Center, in which the company holds a 50.2% stake, is expected to contribute positively to the company's performance in the future [3]. Financial Summary - For 2024-2026, the company is projected to achieve net profits of 528 million, 629 million, and 725 million yuan, respectively, with corresponding earnings per share (EPS) of 0.42, 0.50, and 0.57 yuan per share [4]. - The company’s price-to-earnings (P/E) ratios are forecasted to be 25, 21, and 18 times for the years 2024, 2025, and 2026, respectively [4]. - The company’s total revenue is expected to grow from 3.188 billion yuan in 2024 to 3.702 billion yuan in 2026, reflecting a gradual recovery [5].