COL(SZ:300364) Soochow Securities·2024-04-23 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [4][15]. Core Insights - The company has achieved a significant turnaround, with a net profit of 89.44 million yuan in 2023, compared to a loss of 361.97 million yuan in 2022, marking a 124.71% year-on-year increase [4][15]. - The revenue for 2023 reached 1.41 billion yuan, reflecting a 19.44% increase compared to the previous year, driven by rapid growth in IP derivative development [4][15]. - The company has strategically positioned itself in the short drama market, showcasing a complete content production capability and successfully launching several popular series [3][4]. Financial Forecasts - Total revenue is projected to grow from 1.41 billion yuan in 2023 to 1.95 billion yuan by 2026, with year-on-year growth rates of 19.44%, 7.42%, 15.61%, and 11.49% respectively [2][20]. - The net profit forecast for 2024 is adjusted to 116.64 million yuan, down from previous estimates, with further projections of 135.78 million yuan in 2025 and 156.91 million yuan in 2026 [2][4]. - The earnings per share (EPS) is expected to increase from 0.12 yuan in 2024 to 0.21 yuan in 2026, with corresponding price-to-earnings (P/E) ratios of 151, 130, and 112 respectively [2][4]. Business Development - The company has made significant advancements in AI technology, utilizing a dataset of over 60TB for training AI models, which enhances its IP development and international expansion efforts [16]. - The launch of the self-developed AI model "Chinese Xiaoyao" 1.0 allows for innovative content creation, including novel generation and translation, which supports the company's growth strategy [16]. - The company has successfully produced and distributed various audio and animated works, achieving high viewership and engagement metrics [16].