Alpha Group(SZ:002292) Huaxin Securities·2024-05-05 23:30Investment Rating - The report maintains a "Buy" investment rating for the company [4][22]. Core Views - The company has turned a profit in 2023 after facing performance pressures from 2020 to 2022, with projected revenues of 2.879 billion, 3.095 billion, and 3.375 billion yuan for 2024, 2025, and 2026 respectively, and net profits of 198 million, 293 million, and 390 million yuan for the same years [4][5]. - The current price-to-earnings (PE) ratios are projected to be 53.0, 35.8, and 26.9 for the years 2024, 2025, and 2026 respectively, indicating a potential for growth as the company’s core business shows signs of recovery [4][5]. - The company is leveraging its IP portfolio, which spans all age groups, to drive growth in toy sales and licensing, particularly with the integration of AI applications [4][23]. Summary by Sections Financial Forecast - The company’s revenue for 2023 was 2.739 billion yuan, with a growth rate of 3.1%. Forecasted revenues for 2024, 2025, and 2026 are 2.879 billion, 3.095 billion, and 3.375 billion yuan, with growth rates of 5.1%, 7.5%, and 9.0% respectively [5][26]. - Net profit for 2023 was 94 million yuan, with a significant growth forecast of 111.4% for 2024, leading to projected profits of 198 million, 293 million, and 390 million yuan for 2024, 2025, and 2026 [5][26]. - The diluted earnings per share (EPS) are expected to rise from 0.06 yuan in 2023 to 0.13 yuan in 2024, 0.20 yuan in 2025, and 0.26 yuan in 2026 [5][26]. Business Development - The company is focusing on an "IP+AI" strategy, which aims to enhance its IP commercialization through innovative content creation and new consumer experiences [4][23]. - The company has launched several new IPs and is expanding its product offerings, including smart toys, to capitalize on the growing demand for AI-integrated products [4][23].