MANGO(SZ:300413) Dongxing Securities·2024-04-25 05:30Investment Rating - The report maintains a "Strong Buy" rating for Mango Excellent Media [1][7]. Core Views - The advertising business shows a clear recovery trend, and micro-short dramas are expected to become a new content growth area [2][7]. - In 2023, the company achieved revenue of 14.628 billion yuan, a year-on-year increase of 4.7%, and a net profit attributable to shareholders of 3.556 billion yuan, a year-on-year increase of 90.7% [1][2]. Revenue Breakdown - The revenue from Mango TV's internet video business was 10.614 billion yuan, up 1.9% year-on-year, with advertising revenue at 3.532 billion yuan, down 11.6% year-on-year, and membership revenue at 4.315 billion yuan, up 10.2% year-on-year [2]. - Content e-commerce generated revenue of 2.823 billion yuan, a significant increase of 32.1% year-on-year [2]. Profitability Metrics - The gross profit margin for the company was 33.0%, a decrease of 0.9 percentage points year-on-year, while the net profit margin attributable to shareholders was 11.6%, down 1.2 percentage points year-on-year [3]. - The company’s operating costs were 9.803 billion yuan, with a sales expense of 2.260 billion yuan, a management expense of 610 million yuan, and a research and development expense of 280 million yuan [3]. Future Outlook - The company has a strong pipeline with over 80 films and 100 micro-short dramas planned for release, which is expected to enhance content supply [7]. - The forecast for net profit attributable to shareholders for 2024-2026 is 2.207 billion yuan, 2.714 billion yuan, and 3.017 billion yuan, respectively, with corresponding price-to-earnings ratios of 19X, 15X, and 14X [7][8].