Funshine Culture(SZ:300860) ZHONGTAI SECURITIES·2024-03-10 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% relative to the benchmark index within the next 6 to 12 months [4]. Core Insights - The company has successfully completed significant national projects, enhancing its visibility and competitiveness. The current stock price reflects this achievement, and there is a strong focus on new consumer-end projects [1][6]. - The company has a robust order backlog, but uncertainties regarding the timelines and progress of large projects have led to a downward adjustment in profit forecasts [1][6]. - The company is expected to achieve substantial year-on-year growth in revenue and net profit, with a projected net profit of 134 million yuan in 2023, increasing to 254 million yuan in 2024 [1][8]. Financial Performance Summary - Revenue is forecasted to grow from 677 million yuan in 2023 to 1,011 million yuan by 2026, with a year-on-year growth rate of 111% in 2023 [1][8]. - Net profit is expected to rise from 134 million yuan in 2023 to 298 million yuan in 2026, reflecting a significant growth rate of 814% in 2023 [1][8]. - Earnings per share (EPS) are projected to increase from 0.98 yuan in 2023 to 2.17 yuan in 2026 [1][8]. Cash Flow Analysis - The operating cash flow is expected to be negative in 2023 at -42 million yuan, but it is projected to turn positive in subsequent years, reaching 604 million yuan by 2026 [3]. - The company anticipates a significant increase in cash earnings from 154 million yuan in 2023 to 597 million yuan in 2026 [3]. Key Financial Ratios - The gross profit margin is projected to improve from 37.37% in 2023 to 42.29% in 2026, indicating enhanced profitability [8]. - The return on equity (ROE) is expected to stabilize around 7% from 2024 onwards, reflecting efficient use of equity capital [8].