Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company reported a revenue of 7 billion RMB in 2023, a year-on-year decline of 8%, and an adjusted net profit of 1.1 billion RMB, down 16%, which was in line with expectations [5] - The decline in revenue was attributed to a contraction in reading, low ROI channels, delays in some IP projects, and increased AI expenditures [5] - Online business is still in a bottoming phase, with online revenue at 3.9 billion RMB in 2023, down 10% year-on-year [5] - The company has a rich pipeline of IP projects for 2024, with significant contributions expected from New Classics Media, which launched 6 series in 2023, generating 1.26 billion RMB in revenue [5] - The self-owned copyright operations saw a 10% year-on-year growth, reaching 1.8 billion RMB in 2023 [5] Financial Summary - The company’s revenue is projected to recover slightly in 2024, with estimates of 7.34 billion RMB, representing a 5% year-on-year growth [7] - Non-IFRS net profit is expected to increase to 1.37 billion RMB in 2024, a 21% growth compared to 2023 [7] - The earnings per share (EPS) is forecasted to be 1.34 RMB in 2024, with a price-to-earnings (PE) ratio of 18 [7] Future Outlook - 2024 is anticipated to be a significant year for IP projects, with a focus on validating the company's IP incubation and operational capabilities [6] - The company has launched a "Short Drama Galaxy Incubation Plan" to support the creation of numerous IP projects [6] - AI applications are being utilized for translation and writer assistance, enhancing operational efficiency [6] - The potential acquisition of Tencent Animation assets is expected to further enrich the company's IP library [6]
23年符合预期，24年IP项目催化丰富