DLG EXPO(600826) 中国银河·2024-11-15 02:31Investment Rating - The report maintains a "Recommended" rating for the company [2]. Core Insights - The company reported a revenue of 932 million yuan for the first three quarters of 2024, a year-on-year decrease of 3.3%, and a net profit attributable to shareholders of 202 million yuan, down 16.5% year-on-year. In Q3 alone, the company achieved a revenue of 342 million yuan, a decrease of 14.2% year-on-year, but a net profit of 120 million yuan, which is an increase of 143% year-on-year [1][2]. - The decline in revenue for the first three quarters is attributed to fewer events held at the Expo Center, but the improvement in contract liabilities in Q3 is expected to lay a foundation for growth in Q4. The company hosted 17 exhibitions and 9 events in the first nine months of 2024, with a total area of over 1.01 million square meters, a decrease of 4% year-on-year [1][3]. - The gross profit margin improved to 32.58% in Q3, an increase of 5.3 percentage points year-on-year, while the net profit margin rose to 36.9%, an increase of 23.4 percentage points year-on-year, mainly due to a recognized fair value change gain of 92 million yuan in Q3 [2][3]. Financial Performance Summary - The company forecasts revenues of 1.44 billion yuan in 2024, with a growth rate of 1.5%, and a net profit of 255 million yuan, reflecting a decrease of 7.34% [4]. - The projected earnings per share (EPS) for 2024 is 0.35 yuan, with a price-to-earnings (PE) ratio of 26.55 [4]. - The company is actively pursuing an external development strategy, including a planned investment of 50 million yuan to establish a new subsidiary focused on AI conferences and a 10 million USD investment to set up a wholly-owned subsidiary in Hong Kong [3][4].