SRX(SH:605168) China Post Securities·2025-10-30 09:11Investment Rating - The report maintains an "Accumulate" rating for the company [2]. Core Insights - The company is a leading integrated marketing service provider in China, transitioning towards a diversified technology group with a focus on AI, computing power chips, and sports lottery [3][5]. - The advertising marketing business is expected to benefit from a recovery in demand, with the overall advertising market projected to grow by 10% in 2024 [3][35]. - The company has established strategic partnerships in the computing power sector, enhancing its capabilities in AI and data-driven marketing [3][5]. Summary by Sections 1. Company Overview - The company has over 20 years of experience in the advertising marketing field and has expanded its services from campus media to a wide range of industries [3][8]. - It has built a national marketing service network covering major cities in China and is actively diversifying into AI, computing power, and sports lottery sectors [3][8]. 2. Advertising Marketing Business - The advertising market in China is expected to reach approximately 1.82 trillion yuan in 2024, with a year-on-year growth of 10% [3][35]. - The company has a resilient business model supported by its "product + channel + customer group" strategy, positioning it to benefit from the recovery in the advertising sector [3][29]. 3. Computing Power Services - The company has formed strategic partnerships with leading chip distributors, integrating computing power, data, and marketing services [3][5]. - The demand for intelligent computing power is projected to grow significantly, with the market expected to reach 2,781.9 EFLOPS by 2028 [3]. 4. Sports Lottery Business - The sports lottery sector is anticipated to grow, driven by increased participation in sports and major events like the World Cup [5]. - The company has established over 30 lottery image stores and signed nearly 1,000 cinema partnerships, positioning itself well in this emerging market [5]. 5. Financial Forecast and Investment Recommendations - The company is projected to generate revenues of 3.69 billion yuan in 2025, with a slight adjustment in profit forecasts due to current advertising demand challenges [4][5]. - The earnings per share (EPS) for 2025 is estimated at 1.68 yuan, corresponding to a price-to-earnings (P/E) ratio of 18 times [4].