SPM(SH:601900) Huachuang Securities·2024-04-28 23:32Investment Rating - The report maintains a "Strong Buy" rating for the company [1][2][3] Core Views - The company's 2023 performance met expectations with a revenue of 9.365 billion yuan, a year-over-year increase of 3.35%, and a net profit attributable to shareholders of 1.284 billion yuan, reflecting a year-over-year growth of 34.39% [1][2] - The first quarter of 2024 showed a revenue of 2.088 billion yuan, a year-over-year decrease of 4.86%, but the net profit attributable to shareholders increased by 33.96% to 0.152 billion yuan [1][2] - The company plans to distribute a dividend of 484 million yuan, with a payout ratio of approximately 37.69% [1][2] Financial Performance Summary - In 2023, the company's textbook and auxiliary materials revenue was 8.3 billion yuan, up 5.9% year-over-year, while general book revenue was 1.971 billion yuan, down 5.2% year-over-year [2] - The gross margin for Q1 2024 improved to 34%, an increase of 4.3 percentage points year-over-year, indicating enhanced operational efficiency [2] - The company expects a revenue growth of 14.4% in 2024, with projected net profits of 1.020 billion yuan, reflecting a decrease of 20.6% year-over-year [8] Business Development Insights - The company is actively expanding into AI+ education and training services, with several products in development and market promotion [2] - The after-school service segment generated nearly 200 million yuan in revenue in 2023, with plans for further expansion into provincial and out-of-province markets [2] - The report highlights the company's potential for revenue growth and valuation expansion through its proactive approach to new business areas [2][3]