CNS(601098) 华泰证券·2025-04-27 01:20Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 17.10 [7][8] Core Views - The company reported a revenue of RMB 13.349 billion for 2024, a year-over-year decrease of 1.94%, but the net profit attributable to the parent company was RMB 1.370 billion, which is higher than previous expectations [1] - The overall gross margin improved to 44.35% in 2024, up by 3.00 percentage points year-over-year, primarily due to a decrease in paper costs and adjustments in revenue structure [3] - The publishing business revenue grew by 3.9% in 2024, driven by increased efforts in promoting educational materials outside the province [2] Revenue and Profitability - The company’s revenue for Q1 2025 was RMB 28.74 billion, a decrease of 4.18% year-over-year, while the net profit attributable to the parent company increased by 29.99% to RMB 3.69 billion [1] - The adjusted net profit forecasts for 2025-2027 are RMB 1.702 billion, RMB 1.751 billion, and RMB 1.786 billion respectively, reflecting a significant increase from previous estimates [4] Cost Structure and Margins - The gross margin for Q1 2025 reached 45.29%, an increase of 4.41 percentage points year-over-year, attributed to lower paper costs and a shift in revenue structure [3] - The report indicates that the company is focusing on reducing the scale of low-margin products, which has positively impacted overall profitability [2][3] Market Position - The company holds a 5.37% market share in the national retail book market, ranking second, and a 5.88% share in the online book retail market, also ranking second [2] - The company is recognized as a leader in the educational publishing industry, demonstrating stable operations and a commitment to enhancing its market presence [1][2]