Citic Press(SZ:300788) INDUSTRIAL SECURITIES·2024-03-17 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on projected earnings growth [11][18]. Core Insights - In 2023, the company reported a revenue of 1.717 billion yuan, a year-on-year decline of 4.65%, and a net profit attributable to shareholders of 116 million yuan, down 7.72% year-on-year [4]. - The company's market share in the overall book market increased to 3.25%, up 0.22 percentage points from the previous year, solidifying its position as a leader in mass publishing [4]. - The company has made significant progress in its "Golden Product Project," with a total of 309 bestselling titles in 10 major segments, an increase of 5.5% year-on-year [4]. Financial Performance Summary - The company expects net profits for 2024-2026 to be 160 million, 190 million, and 207 million yuan, respectively, corresponding to PE ratios of 35.2, 29.7, and 27.3 times based on the current stock price [11]. - The gross profit margin is projected to improve from 34.87% in 2023 to 36.77% by 2026 [9]. - The return on equity (ROE) is expected to rise from 5.53% in 2023 to 7.94% by 2026 [9]. Market and Business Strategy - The company is actively transforming its channels, collaborating with over 300 publishers and offering more than 400,000 book SKUs [15]. - The company has seen a 15.02% year-on-year growth in knowledge service revenue, reaching 58 million yuan in 2023 [15]. - The launch of the AIGC digital publishing platform is expected to enhance publishing efficiency and marketing precision [15].