Xinhua Winshare(SH:601811) Southwest Securities·2024-11-05 11:17Investment Rating - The report maintains a "Buy" rating for Xinhua Wenhui (601811) [1] Core Views - The company demonstrates a clear advantage in tax policies, maintaining stable operational capabilities despite financial pressures from changes in corporate income tax policies [2] - Xinhua Wenhui is actively pursuing digital transformation and integrating online and offline reading services, enhancing its competitiveness in the national book e-commerce sector [3] - The company is expected to benefit from tax incentives under the Western Development Strategy, which will support stable dividend rates and overall performance [3] Summary by Relevant Sections Financial Performance - In Q3 2024, Xinhua Wenhui achieved operating revenue of 2.65 billion, a year-on-year increase of 3.4%, and a pre-tax profit of 219 million, up 15.9% year-on-year. However, the net profit attributable to shareholders decreased by 1.6% to 175 million [1][2] - The company's tax rate for Q3 was approximately 16.8%, and for the first three quarters, it was about 12.4%, benefiting from a favorable profit structure [2] Growth Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is 1.54 billion, 1.71 billion, and 1.89 billion respectively, with corresponding PE ratios of 11x, 10x, and 9x [3][4] - Revenue growth rates are projected at 17.66% for 2024, 11.58% for 2025, and 9.29% for 2026 [4] Strategic Initiatives - The company is integrating its channel advantages with cultural resources in Sichuan, exploring new business avenues beyond traditional publishing [3] - Xinhua Wenhui is enhancing its e-commerce operations and developing a "cloud store" model to create diverse and personalized reading consumption scenarios [3]