Enlight Media(300251)2024-04-28 01:30Investment Rating - The report assigns an "OUTPERFORM" rating to the company with a target price of RMB 12.18, indicating a potential upside of 22% from the current price [2][5][14]. Core Insights - The film market is experiencing a strong recovery, with the company's operations showing significant improvement. In 2023, total revenue reached RMB 1.55 billion, a year-on-year increase of 105%. The net profit attributable to shareholders was RMB 420 million, reflecting a remarkable year-on-year growth of 1596% [10][11]. - The company has a diverse and stable film supply, with a strong focus on animated films. In 2023, the film business generated RMB 1.29 billion in revenue, accounting for 83.2% of total revenue, with a gross profit margin of 41.02% [10][12]. - The company has a rich slate of films and TV series planned for 2024, which is expected to drive significant revenue growth. This includes several animated films and a variety of TV series [12][13]. Financial Summary - In 2023, the company reported total revenue of RMB 1.55 billion, with a net profit of RMB 420 million. The revenue from the film business was RMB 1.29 billion, while the agency and other income contributed RMB 260 million [10][11]. - The earnings forecast for 2024-2026 projects total revenues of RMB 2.87 billion, RMB 3.27 billion, and RMB 3.73 billion, with corresponding year-on-year growth rates of 85.6%, 14.0%, and 14.2% respectively [4][8][13]. - The fully diluted EPS is expected to be RMB 0.37, RMB 0.43, and RMB 0.50 for 2024-2026, indicating a positive growth trajectory [8][14].