Fengyuzhu(603466) Huaxin Securities·2025-01-20 00:04Investment Rating - The report maintains a "Buy" investment rating for the company [1] Core Views - The company is expected to experience a recovery in its main business in 2025, driven by new demands and supplies in the experience economy [4][5] - Despite a projected loss in 2024, the company has a solid order backlog that lays a good foundation for future performance recovery [4][6] - The integration of virtual and real experiences is anticipated to drive a second growth curve through the development of VR/MR and AIGC technologies [5][6] Summary by Sections Financial Performance - The company forecasts a net profit for Q4 2024 ranging from -0.179 to +0.271 billion yuan, with a non-recurring profit between -0.11 to +0.265 billion yuan, indicating a decline compared to Q4 2023 [4] - The total revenue for 2024 is expected to be 2.065 billion yuan, a decrease of 12.2% from 2023, with a projected recovery in 2025 to 2.295 billion yuan [9][10] Profitability Forecast - The company anticipates a net profit of -1.0 billion yuan in 2024, followed by a recovery to 1.5 billion yuan in 2025 and 2.6 billion yuan in 2026 [7][9] - The projected price-to-earnings (P/E) ratios are -51.5 for 2024, 34 for 2025, and 19.8 for 2026, reflecting the expected turnaround in profitability [7][9] Strategic Initiatives - The company is actively expanding its cultural tourism business and enhancing its IP incubation and technological investments [5][6] - A partnership with the Yuanmingyuan has been established to create immersive cultural experiences, which is expected to enhance the company's offerings in virtual tourism and historical education [5][6] Market Position - The company is positioned as a connector between new cultural supply and consumer demand in the tourism sector, leveraging its strong order backlog and technological advancements [5][6]