MANGO(SZ:300413) Huachuang Securities·2025-04-30 09:34Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [1][16]. Core Insights - The company is currently increasing its investment in content, which is expected to pressure short-term profits, but the long-term outlook remains positive due to the potential uplift from high-quality content [1][6]. - The company achieved a total revenue of 14.08 billion yuan in 2024, a year-on-year decrease of 3.7%, with a net profit attributable to the parent company of 1.364 billion yuan, down 61.6% year-on-year [6][7]. - For Q1 2025, the company reported a revenue of 2.9 billion yuan, a year-on-year decline of 13%, and a net profit of 379 million yuan, down 19.8% year-on-year [6][7]. - The company is in a phase of strategic transformation, focusing on increasing the production of high-quality dramas, which is expected to enhance its market share in the long run [6][7]. Financial Summary - Total revenue projections for the company are as follows: 13.253 billion yuan in 2025, 14.643 billion yuan in 2026, and 15.883 billion yuan in 2027, with respective year-on-year growth rates of -5.9%, 10.5%, and 8.5% [2][7]. - The net profit attributable to the parent company is expected to recover to 1.837 billion yuan in 2025, 2.095 billion yuan in 2026, and 2.241 billion yuan in 2027, with growth rates of 34.7%, 14.0%, and 7.0% respectively [2][7]. - The company’s earnings per share (EPS) are projected to be 0.98 yuan in 2025, 1.12 yuan in 2026, and 1.20 yuan in 2027 [2][7]. - The target price for the company's stock is set at 29.5 yuan, with the current price at 22.51 yuan, indicating potential upside [2][6].