QCMC(SH:600229) ZHONGTAI SECURITIES·2024-04-29 03:00Investment Rating - The investment rating for the company is "Buy" (maintained) with a target price of 7.34 CNY [2][12]. Core Insights - The company has achieved a record high in dividends, actively exploring new business formats such as AI education and virtual reality education [7][9]. - The company's revenue and net profit have shown steady growth, with a focus on digital transformation and maintaining operational stability [6][19]. - The company has effectively controlled its expense ratios, maintaining stability in sales, management, and R&D expenses [11][30]. Financial Performance Summary - Revenue Forecast: The company is projected to achieve revenues of 2,969 million CNY in 2024, 3,281 million CNY in 2025, and 3,634 million CNY in 2026, reflecting year-on-year growth rates of 10% to 11% [2][12]. - Net Profit: Expected net profits are 326 million CNY for 2024, 376 million CNY for 2025, and 423 million CNY for 2026, with a significant drop in 2024 due to tax policy changes [12][35]. - Earnings Per Share (EPS): The EPS is forecasted to be 0.49 CNY in 2024, 0.56 CNY in 2025, and 0.63 CNY in 2026 [12][35]. - Valuation Ratios: The current P/E ratio is 15.12 for 2024, decreasing to 11.64 by 2026, indicating a favorable valuation trend [12][35]. Business Highlights - Dividend Distribution: The company plans to distribute a cash dividend of 180 million CNY in 2023, a 35% increase year-on-year, with a payout ratio of 43.8% [7][8]. - Core Business Resilience: The publishing business generated 960 million CNY in revenue in 2023, while the distribution business saw a 9% increase in revenue to 2.12 billion CNY [8][9]. - Technological Integration: The company has made strides in integrating technology into education, partnering with iFLYTEK to establish an AI publishing and communication innovation research institute [9][11].