XMGF(SZ:300770) Wanlian Securities·2024-04-25 13:30Investment Rating - The investment rating for the company is "Buy" [5][17]. Core Views - The company has shown steady growth in revenue and profit for 2023, with revenue reaching 1.523 billion yuan (YoY +6.64%) and net profit of 708 million yuan (YoY +2.36%). The first quarter of 2024 saw revenue of 401 million yuan (YoY +12.30%), although net profit decreased by 13.19% due to the removal of corporate income tax exemptions [2][12]. - The company is focusing on enhancing content operations and user experience in its IPTV business, maintaining stable partnerships with major telecom operators and improving product offerings [3][10]. - The company is actively exploring XR and ultra-high-definition fields, collaborating with industry leaders to innovate and enhance its technological capabilities [11][12]. Financial Summary - For 2023, the company achieved a revenue of 1.523 billion yuan, with a projected revenue of 1.634 billion yuan for 2024, reflecting a growth rate of 7.25% [4][14]. - The net profit for 2023 was 708 million yuan, with a forecasted decline to 680 million yuan in 2024 due to tax rate adjustments [4][12]. - The earnings per share (EPS) for 2023 was 3.06 yuan, expected to decrease to 2.94 yuan in 2024, with a projected recovery in subsequent years [4][12]. Business Operations - The IPTV basic business generated revenue of 808.93 million yuan in 2023, with effective users reaching 19.51 million [3][10]. - The company has integrated high-quality content from various providers, enhancing user engagement and platform activity, resulting in a revenue of 400.43 million yuan from IPTV value-added services [3][10]. - The overall business revenue reached 205.14 million yuan, with a 7.96% year-on-year growth, and the number of effective smart terminal devices serviced by the company increased by 22% [10].