Citic Press(SZ:300788) Huaxin Securities·2024-03-17 16:00Investment Rating - The report maintains a "Buy" investment rating for the company [3] Core Views - The company is expected to recover its main business, driven by both internal and external growth strategies, with a focus on AI technology integration and digital transformation [2][3] - Revenue forecasts for 2024-2026 are projected at 1.899 billion, 2.130 billion, and 2.350 billion yuan, respectively, with corresponding net profits of 151 million, 201 million, and 251 million yuan [3][6] - The company’s market share remains stable, and the implementation of new tax policies is anticipated to impact its financials starting January 1, 2024 [3] Summary by Sections Financial Performance - In 2023, the company reported revenues of 1.72 billion yuan and a net profit of 116 million yuan, reflecting a year-on-year decline of 4.7% and 7.7%, respectively [3][16] - The company’s gross margin and net margin were slightly improved at 34.87% and 6.96% [16] - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.80, 1.06, and 1.32 yuan, respectively [3][6] Market Position - The company holds a 3.25% share of the overall book retail market in 2023, an increase of 0.22 percentage points from the previous year, maintaining its leading position in various segments [16] - The retail book market in China saw a total scale of 912 billion yuan in 2023, with a year-on-year growth of 4.72% [16] Strategic Initiatives - The company is enhancing its digital infrastructure and collaborating with major AIGC model technology firms to develop intelligent reading brands [2] - The introduction of the "CITIC Academy AI Reading Assistant" in partnership with Baidu aims to innovate reading experiences and drive future business growth [2]