SPM(SH:601900) Guotou Securities·2025-08-27 09:28Investment Rating - The report maintains a "Buy-A" rating for the company with a 6-month target price of 18.9 CNY [4]. Core Views - The company demonstrated stable operations with a slight revenue decline of 1.3% year-on-year, achieving a revenue of 3.972 billion CNY in the first half of 2025. However, net profit surged by 50.74% year-on-year to 451 million CNY, primarily due to a significant reduction in income tax expenses influenced by tax exemption policies [1][3]. - The company continues to solidify its publishing barriers in the educational sector, having distributed approximately 172 million copies of textbooks in the spring of 2025 and holding 23 national standard textbooks approved by the Ministry of Education [1]. - The integration of AI technology into educational services is progressing, with the "Yuejiao Xiangyun" digital textbook platform covering 19,000 schools and activating 15.897 million users by the end of June 2025. The company has also launched new AI-driven applications to enhance its product offerings [2]. Financial Summary - For the first half of 2025, the company reported a gross margin of 35.01%, an increase of 1.47 percentage points from 2024. The sales expense ratio, management expense ratio, and R&D expense ratio were 9.36%, 10.83%, and 0.50%, respectively, indicating strong cost control [1]. - The company has a robust cash position, with cash and trading financial assets totaling approximately 3.75 billion CNY as of June 2025, allowing for consistent high dividend payouts, with dividend yields of 5.66%, 4.16%, and 3.64% from 2022 to 2024 [2]. - Revenue projections for 2025-2027 are estimated at 9.56 billion CNY, 10.08 billion CNY, and 10.62 billion CNY, with corresponding net profits of 1.113 billion CNY, 1.240 billion CNY, and 1.364 billion CNY [3][9].