Songcheng Performance(300144) 群益证券·2025-02-06 07:48Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside in the stock price [5][11]. Core Insights - The company is expected to achieve an annual revenue of between RMB 2.3 billion and RMB 2.5 billion for 2024, representing a year-on-year growth of 19.4% to 29.8%, with a projected net profit of RMB 930 million to RMB 1.2 billion, marking a turnaround from previous losses [5][8]. - The company experienced a strong performance during the 2025 Spring Festival, with 550 performances of "The Eternal Song" across 12 major locations, achieving a peak daily revenue of over RMB 40 million [8]. - The adjustment in management fees for light asset projects is expected to have a minimal impact on overall revenue, as these projects currently represent a small portion of the company's operations [8]. - Profit forecasts for 2024 to 2026 are maintained, with expected net profits of RMB 1.08 billion, RMB 1.27 billion, and RMB 1.42 billion respectively, reflecting growth rates of 16.8% and 12.1% [8][10]. Company Overview - The company operates in the leisure services industry, with a market capitalization of RMB 21.04 billion and a current stock price of RMB 8.93 as of February 5, 2025 [2]. - The major shareholder is Hangzhou Songcheng Group Holding Co., Ltd., which holds a 27.66% stake in the company [2]. - The company's stock has seen a decline of 6.4% over the past month and 10.1% over the past year [2]. Financial Performance - The company reported a net profit of RMB 315 million in 2021, followed by losses in 2022 and 2023, with projections of returning to profitability in 2024 [10]. - Revenue is expected to grow from RMB 2.32 billion in 2024 to RMB 2.68 billion in 2025, and further to RMB 2.998 billion in 2026 [10][13]. - The earnings per share (EPS) is projected to be RMB 0.41 in 2024, increasing to RMB 0.54 by 2026 [10][13].