SPM(601900) 国投证券·2024-04-13 16:00Investment Rating - The report assigns a "Buy - A" rating for the company with a target price of 17.7 CNY [4]. Core Insights - The company is a leading local publishing and distribution entity, backed by the Guangban Group, and has diversified into digital publishing, smart education, and extracurricular education [1][10]. - The company has made strategic acquisitions, including 100% stakes in Guangdong Education Bookstore, Guangdong Lingnan Publishing House, and Guangdong Map Publishing House, to consolidate its asset base and expand its business [1][11]. - The company is actively developing a smart education platform and an AI+ education product matrix, which is expected to become a significant profit growth point alongside its core publishing and distribution business [2][23]. Financial Overview - The company's revenue is projected to grow from 95.38 billion CNY in 2023 to 117.26 billion CNY in 2025, with net profit expected to reach 12.56 billion CNY in 2023 [23]. - The company reported a net profit of 943.4 million CNY in 2022, with an estimated increase to 1.26 billion CNY by 2025 [3]. - The earnings per share (EPS) is expected to rise from 1.05 CNY in 2022 to 1.40 CNY in 2023, before slightly declining in the following years [3]. Business Structure and Strategy - The company operates under a clear organizational structure with a strong state-owned background, ensuring stability and strategic direction [13][32]. - The publishing and distribution business is segmented into educational materials and general books, with a focus on enhancing operational efficiency and expanding sales channels [23][43]. - The company is leveraging its strong position in the education sector, particularly in Guangdong, to drive growth in its core business and new ventures [1][48].