CNS(SH:601098) Guohai Securities·2024-11-05 14:34Investment Rating - The report maintains a "Buy" rating for the company [2][5][9] Core Views - The company reported a steady increase in revenue, with general book sales significantly outperforming the market [3][4] - The company achieved a total revenue of 9.366 billion yuan for the first three quarters of 2024, representing a year-over-year increase of 1.72%, while the net profit attributable to shareholders decreased by 22.56% [3][4] - The company has a strong cash position with 13.984 billion yuan in cash and cash equivalents as of Q3 2024, reflecting a year-over-year increase of 34.37% [4] Revenue Summary - For Q1-Q3 2024, the company reported revenue of 9.366 billion yuan, with a gross profit of 4.132 billion yuan and a gross margin of 44.12%, an increase of 1.99 percentage points year-over-year [4] - In Q3 2024, the company generated revenue of 2.473 billion yuan, a year-over-year increase of 1.47%, but a quarter-over-quarter decrease of 36.48% [4] Profit Summary - The net profit attributable to shareholders for Q1-Q3 2024 was 9.57 billion yuan, down 22.56% year-over-year, with a net profit of 1.83 billion yuan in Q3 2024, reflecting a year-over-year decline of 30.89% [3][4] - The effective tax rate for Q1-Q3 2024 was 25.74%, with a profit before tax of 1.392 billion yuan, showing a year-over-year increase of 5.50% [4] Future Earnings Forecast - The company is expected to see a decline in net profit in 2024 due to adjustments in the main business tax rate, but the publishing and distribution business remains stable with an optimistic outlook for future performance [5] - Projected revenues for 2024-2026 are 14 billion, 14.8 billion, and 15.2 billion yuan, with net profits of 1.397 billion, 1.485 billion, and 1.554 billion yuan respectively, corresponding to P/E ratios of 16, 15, and 14 times [5][7]