Changjiang Media(SH:600757) Guohai Securities·2025-05-21 09:31Investment Rating - The report assigns a "Buy" rating for the company, Changjiang Media (600757), marking its first coverage [2]. Core Insights - The company has demonstrated steady growth in operating profit and an increase in per-share dividends. In Q1 2025, it achieved revenue of 2.101 billion yuan, a year-on-year increase of 9.31%. The net profit attributable to shareholders reached 401 million yuan, reflecting a year-on-year growth of 53.14% [4][5]. - The company plans to distribute a cash dividend of 0.41 yuan per share for the fiscal year 2024, which is an increase of 0.01 yuan from the previous year, resulting in a dividend payout ratio of 52.65% and a dividend yield of 4.29% based on the closing price on May 19 [4]. Summary by Sections Financial Performance - In Q1 2025, the revenue from publishing and distribution was 513 million yuan and 1.704 billion yuan, respectively, with year-on-year growth rates of 38% and 7% [4]. - The gross profit margin for Q1 2025 was 35.66%, an increase of 0.25 percentage points year-on-year [4]. - The company reported a total cash position of 8.319 billion yuan as of Q1 2025 [4]. Earnings Forecast - The company is expected to achieve revenues of 7.295 billion yuan, 7.491 billion yuan, and 7.669 billion yuan for the years 2025, 2026, and 2027, respectively. The net profit attributable to shareholders is projected to be 1.093 billion yuan, 1.164 billion yuan, and 1.224 billion yuan for the same years [5][6]. - The report anticipates a steady increase in earnings per share (EPS) from 0.90 yuan in 2025 to 1.01 yuan in 2027 [5][6]. Valuation Metrics - The projected price-to-earnings (P/E) ratios for the years 2025, 2026, and 2027 are 10.74x, 10.08x, and 9.59x, respectively [5][6]. - The report indicates a return on equity (ROE) of 11% for the years 2025 to 2027 [6].