LSR(002858) 西南证券·2025-01-27 01:13Investment Rating - The report maintains a "Buy" rating for the company with a target price of 14.35 CNY over the next six months, while the current price is 11.72 CNY [1][9]. Core Insights - The company is expected to face challenges in 2024 due to impairment provisions affecting performance, but it is anticipated to emerge stronger in 2025 with improved earnings potential [7][9]. - The company has reported a projected net loss of 28 million CNY for 2024, which represents a significant reduction in losses compared to the previous year [7]. - The company is positioned to benefit from policy support aimed at promoting automotive consumption and sports events, particularly with the return of F1 racing to China [7][9]. Financial Summary - Revenue Forecast: The company expects revenues to grow from 405.17 million CNY in 2023 to 468.24 million CNY in 2024, with further increases to 637.66 million CNY in 2025 and 796.61 million CNY in 2026, reflecting growth rates of 56.86%, 15.57%, 36.18%, and 24.93% respectively [2][9]. - Net Profit: The net profit attributable to the parent company is projected to improve from a loss of 192.92 million CNY in 2023 to a loss of 27.55 million CNY in 2024, followed by profits of 67.22 million CNY in 2025 and 92.27 million CNY in 2026 [2][9]. - Earnings Per Share (EPS): EPS is expected to recover from -1.18 CNY in 2023 to -0.17 CNY in 2024, and then to 0.41 CNY in 2025 and 0.56 CNY in 2026 [2][9]. - Return on Equity (ROE): ROE is projected to improve from -24.28% in 2023 to -4.49% in 2024, and then to 9.80% in 2025 and 12.07% in 2026 [2][9]. Business Segments - Sports Venue Operations: Revenue from sports venue operations is expected to grow from 83.7 million CNY in 2023 to 96.2 million CNY in 2024, with a growth rate of 15.0% [8]. - Sports Event Management: Revenue from sports event management is projected to increase significantly from 223.4 million CNY in 2023 to 261.4 million CNY in 2024, reflecting a growth rate of 17.0% [8]. - Digital Sports: This segment is expected to see substantial growth, with revenues projected to rise from 10.9 million CNY in 2023 to 19.6 million CNY in 2024, marking an increase of 80.0% [8]. Market Position and Future Outlook - The company is recognized as a leading player in the automotive sports sector in China and is expected to benefit from increasing market recognition and policy support [9]. - The anticipated completion of the Hainan International Racing Circuit project is expected to enhance the company's profitability by over 50 million CNY annually once operational [7][9].