Citic Press(300788) 华鑫证券·2025-03-25 16:04Investment Rating - The report maintains a "Buy" investment rating for the company [2][9] Core Views - The company is positioned as a leader in popular reading and is actively engaging in the construction of a culturally strong nation through its business strategies [2][9] - The company’s main revenue streams include book publishing and distribution, digital services, and urban cultural space operations, with total revenue for 2024 projected at 1.687 billion yuan, showing a slight decline of 1.72% year-on-year [4][9] - The company is leveraging AI technology to enhance its publishing capabilities and has seen significant growth in its IP-related businesses, particularly in the animation sector, which grew over 25% year-on-year in 2024 [5][9] Financial Performance - In 2024, the company reported total revenue of 1.687 billion yuan, with net profit attributable to shareholders at 119 million yuan, reflecting a year-on-year growth of 2.0% [11] - The company’s gross margin improved by 4.09 percentage points, driven by the application of digital technologies that enhance efficiency and reduce costs [4][9] - Forecasts for 2025-2027 indicate revenue growth to 1.739 billion yuan, 1.820 billion yuan, and 1.905 billion yuan respectively, with net profit expected to reach 163 million yuan, 202 million yuan, and 224 million yuan [9][11] Industry Insights - The overall book retail market in China is projected to decline slightly in 2024, with a total market value of 112.9 billion yuan, down 1.52% year-on-year [6] - The government is promoting reading through new regulations aimed at enhancing public access to reading facilities, which may provide growth opportunities for the company [6][9]