Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$32.00, down from the previous HK$35.00 [1][18]. Core Insights - The company is expected to achieve over 30% profit growth in 2024, supported by a rich portfolio of TV series, movies, and games [1][2]. - Revenue for 2024 is projected at RMB 7.59 billion, reflecting an 8.2% year-on-year increase [3][15]. - The adjusted net profit for 2024 is estimated at RMB 1.48 billion, a 30.6% increase compared to the previous year [15][18]. Financial Performance Summary - The company reported a revenue of RMB 3.73 billion for 2H23, a 5% year-on-year increase, with adjusted net profit at RMB 527 million, down 23% year-on-year [1][13]. - Online reading platform revenue decreased by 7% to RMB 1.91 billion, while copyright operation revenue increased by 25% to RMB 1.78 billion [1][13]. - The adjusted net profit margin for 2H23 was 14.1%, down from 19.3% in the previous year [13][15]. Revenue Breakdown - Online business revenue is expected to be RMB 3.96 billion in 2024, while copyright operations are projected at RMB 3.54 billion [15][18]. - The company plans to release 6 to 7 TV series in 2024, including major titles that have already shown strong box office performance [2][18]. Valuation and Target Price - The target price is derived from a sum-of-the-parts (SOTP) valuation, with contributions from various segments: RMB 8.00 for non-New Classics copyright operations, RMB 12.00 for New Classics, and RMB 12.00 for online business [18][20]. - The valuation reflects a consistent P/E ratio of 20x for 2024 across all segments, aligning with industry averages [18][20].
丰富作品储备有望支撑2024年利润增长逾30%