Songcheng Performance(300144) 东方证券·2025-02-18 00:31Investment Rating - The report maintains a "Buy" rating for the company with a target price of 10.35 CNY, based on a price-to-earnings (PE) ratio of 23 times for 2025 [2][6][8]. Core Insights - The company is expected to achieve earnings per share (EPS) of 0.40, 0.45, and 0.52 CNY for the years 2024, 2025, and 2026 respectively, reflecting a downward adjustment from previous forecasts due to weak downstream demand [2][8]. - The company reported a strong performance during the Spring Festival, with significant increases in attendance and revenue from its "Qian Gu Qing" performances, indicating a recovery in market conditions [7][8]. - The company has announced a new project in Qingdao, which will involve a management fee reduction for light asset projects from 20% to 8% starting in 2025, enhancing profitability [7][8]. Financial Summary - The company's projected revenue for 2024 is 2,479 million CNY, with a year-on-year growth of 28.7%, followed by 2,735 million CNY in 2025 and 3,080 million CNY in 2026 [4][11]. - The net profit attributable to the parent company is expected to turn positive in 2024, reaching 1,047 million CNY, compared to a loss of 110 million CNY in 2023 [4][11]. - The gross margin is projected to improve from 66.3% in 2023 to 71.5% by 2026, indicating enhanced operational efficiency [4][11].