CNS(SH:601098) China Post Securities·2025-12-17 10:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the benchmark index within the next six months [8][14]. Core Insights - The company has experienced a decline in revenue but an increase in net profit, with a reported revenue of 8.49 billion yuan for the first three quarters of 2025, down 9.37% year-on-year, while net profit attributable to shareholders rose by 22.32% to 1.17 billion yuan [5][6]. - The company is focusing on optimizing its business structure and exploring new business models, such as "bookstore + IP" [7]. - The gross profit margin has shown a recovery trend, reaching 46.12% for the first three quarters of 2025, an increase of 2.00 percentage points year-on-year [6]. Financial Performance Summary - For the first three quarters of 2025, the company reported a total revenue of 8.49 billion yuan, with a net profit of 1.17 billion yuan, reflecting a year-on-year growth of 22.32% [5]. - The company’s revenue for Q3 2025 was 2.15 billion yuan, down 12.94% year-on-year, while net profit for the same period was 153 million yuan, a decrease of 16.33% [5][6]. - The company plans to invest 48 million yuan in upgrading its flagship store, aiming to enhance customer experience and diversify its business offerings [7]. Earnings Forecast - The earnings forecast for 2025, 2026, and 2027 estimates revenues of 12.9 billion yuan, with net profits of 1.55 billion yuan, 1.61 billion yuan, and 1.67 billion yuan respectively [8][10]. - The expected EPS for the same years is projected to be 0.86 yuan, 0.89 yuan, and 0.93 yuan, with corresponding P/E ratios of 13, 13, and 12 [8][10].