SFC(SH:601595) Soochow Securities·2024-11-02 04:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's Q3 2024 total revenue decreased by 31% year-on-year to 180 million yuan, with gross profit down 51% to 30 million yuan, and gross margin declining by 8 percentage points to 19% [2] - The decline in revenue is primarily attributed to the overall downturn in the film market, leading to a reduction in box office revenue [3] - There are signs of marginal improvement in October, with expectations for a boost from upcoming New Year and Spring Festival films [3] - The company has adjusted its net profit forecasts for 2024-2026 downwards due to market conditions, with projected net profits of 120 million, 250 million, and 340 million yuan respectively [4] Financial Performance Summary - For the first nine months of 2024, total revenue decreased by 11% to 560 million yuan, with a gross profit decline of 16% to 140 million yuan and a gross margin decrease of 1 percentage point to 24% [2] - The company plans to distribute a cash dividend of 0.96 yuan per 10 shares, totaling 43.03 million yuan, which represents 40.1% of the net profit for the first nine months of 2024 [2] - The report highlights that the total box office in China for January to September 2024 decreased by 24% to 34.7 billion yuan, with Shanghai Film City's box office down 31% to 330 million yuan [3] - The report notes that the company's current stock price corresponds to a P/E ratio of 99 for 2024, 47 for 2025, and 34 for 2026 [4]