M&G(SH:603899) Tianfeng Securities·2025-03-27 14:11Investment Rating - The investment rating for the company is "Buy" with a 6-month outlook maintained [7] Core Views - The company reported a revenue of 24.23 billion yuan for 2024, a year-on-year increase of 3.76%, while the net profit attributable to shareholders decreased by 8.58% to 1.40 billion yuan [1] - The company is focusing on enhancing product quality and expanding into IP and anime-related products, which has led to positive market feedback [2] - The company is actively expanding its international market presence, particularly in Africa and Southeast Asia, achieving a 21% year-on-year increase in overseas revenue [3] Summary by Sections Traditional Business - The company achieved revenues of 2.43 billion yuan from writing instruments, 3.47 billion yuan from student stationery, and 3.57 billion yuan from office supplies, with respective year-on-year growth rates of 6.9%, 0.1%, and 1.7% [2] - The gross profit margins for these segments were 42.9%, 33.9%, and 27.7%, showing slight variations year-on-year [2] Retail Expansion - The company's retail stores, including Morning Glory Life Hall and Jiumu Miscellaneous Society, generated 1.48 billion yuan in revenue, a 10% increase year-on-year [4] - As of the end of 2024, the company operated 779 retail stores, with a focus on optimizing product mix and enhancing membership operations [4] Financial Performance - The company reported a gross margin of 6.66% for 2024, a decrease of 1.12 percentage points year-on-year [6] - The net profit margin was 5.76%, reflecting a decline of 0.78 percentage points compared to the previous year [6] Future Projections - The company has adjusted its profit forecasts for 2025-2027, expecting net profits of 1.59 billion yuan, 1.80 billion yuan, and 2.06 billion yuan respectively, with corresponding P/E ratios of 18X, 16X, and 14X [12]