IMS(SH:600556) GF SECURITIES·2024-04-26 06:32Investment Rating - The report assigns a "Buy" rating, expecting the stock price to outperform the market by more than 15% over the next 12 months [1]. Core Insights - The report highlights that the company achieved a revenue of 965 million yuan in Q1 2024, representing a year-on-year increase of 1.10% but a quarter-on-quarter decrease of 6.52%. The gross margin was 17.09%, down by 3.09 percentage points year-on-year, but up by 0.45 percentage points quarter-on-quarter. The net profit attributable to the parent company was 14.61 million yuan, a decrease of 23.18% year-on-year, but a turnaround from a loss in the previous quarter. The net profit excluding non-recurring items was 8.94 million yuan, down 46.59% year-on-year, but also a turnaround from a loss quarter-on-quarter [31][32]. Financial Summary - Revenue (in million yuan): - 2022A: 4,129 - 2023A: 4,202 - 2024E: 4,725 - 2025E: 5,250 - 2026E: 5,703 - Growth Rate (%): - 2022A: -8.5 - 2023A: 1.8 - 2024E: 12.4 - 2025E: 11.1 - 2026E: 8.6 - Net Profit (in million yuan): - 2022A: 180 - 2023A: 93 - 2024E: 177 - 2025E: 254 - 2026E: 342 - Earnings Per Share (EPS): - 2022A: 0.10 - 2023A: 0.05 - 2024E: 0.10 - 2025E: 0.14 - 2026E: 0.19 [9][31]. Business Outlook - The company is focusing on the "AI + Overseas Expansion" dual-driven strategy, with an emphasis on increasing overseas revenue. The report mentions the launch of the ADream platform for overseas influencer marketing, which aims to support brands and cross-border MCNs in enhancing resources and efficiency. Additionally, the company has signed a partnership with KOLS.ASIA to expand its international strategy [32]. Profitability Forecast - The company is projected to generate revenues of 4.725 billion yuan and 5.250 billion yuan in 2024 and 2025, respectively, with net profits of 177 million yuan and 254 million yuan for the same years. The report maintains a target price of 4.88 yuan per share based on a 50X PE ratio for 2024 [31][32].