Songcheng Performance(SZ:300144) Guotai Junan Securities·2024-04-28 01:32Investment Rating - The investment rating for the company is "Buy" with a target price of 12.95 CNY, down from the previous target of 14.30 CNY [1][2]. Core Views - The report indicates that the company's core business profitability is steadily recovering, and it highlights the progress of new projects [1][2]. - The company reported a revenue of 19.26 billion CNY in 2023, a significant increase of 291% year-on-year, recovering to levels seen in 2019 [1][2]. - The net profit loss for the company was 1.1 billion CNY, primarily due to the impact of impairment losses [1][2]. Summary by Sections Performance Overview - The company achieved a gross profit of 12.78 billion CNY with a gross margin of 66.35%, recovering from a decline of 5.05% compared to 2019 [1]. - The report notes that the core projects are recovering, with significant revenue contributions from Lijiang and Guilin [1][2]. Financial Forecast - The forecast for 2024 estimates an EPS of 0.47 CNY, reflecting a decrease of 8% from previous estimates [1]. - Revenue projections for 2024 are set at 28.73 billion CNY, with a growth rate of 49% compared to 2023 [2]. Key Financial Metrics - The company’s operating profit margin is projected to be 51.2% in 2024, with a net profit margin of 42.6% [2]. - The report highlights a significant recovery in the company's operational metrics, with a return on equity (ROE) expected to reach 14.2% in 2024 [2]. Market Position - The company is recognized as a leading player in the cultural performance and theme park industry in China, with a strong brand presence [2]. - The report emphasizes the company's ability to replicate its business model in different locations, which is a key driver for future growth [1][2].