SPM(601900) 东吴证券·2024-11-03 01:40Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported stable revenue growth in Q3 2024, with a 3% year-on-year increase to 2.5 billion yuan, while the net profit attributable to shareholders decreased by 14% to 230 million yuan due to a higher tax rate. However, the reduction in sales expense ratio partially offset the tax impact [2] - The general book sales remain under pressure, but there is a marginal improvement in the overall market performance, with a 4% year-on-year decline in the book retail market for the first three quarters of 2024, showing a slight recovery in Q3 [3] - The company’s subsidiary has established an investment fund with a total scale of 20 million yuan, indicating strategic investment initiatives [3] Financial Performance Summary - For Q3 2024, the company reported a gross profit of 800 million yuan, with a gross margin of 34%, down by 1 percentage point year-on-year. The sales expense ratio decreased by 3 percentage points to 11% [2] - For the first three quarters of 2024, the company’s revenue grew by 0.5% to 6.5 billion yuan, while gross profit increased by 6% to 2.2 billion yuan, with a gross margin improvement of 2 percentage points to 34% [2] - The forecast for net profit attributable to shareholders for 2024-2026 has been revised down from 9.6 billion yuan to 8.1 billion yuan for 2024, reflecting the challenges in the general book market [4] Valuation Metrics - The current stock price corresponds to a P/E ratio of 15 for 2024, 14 for 2025, and 13 for 2026, indicating a valuation that reflects the company's market position and growth prospects [4] - The company is expected to maintain a leading advantage in the education publishing market in Guangdong Province, with positive developments in new businesses such as AI education and after-school services [4]