WANXIN MEDIA(601801) 德邦证券·2024-05-06 01:07Investment Rating - The report maintains a "Buy" rating for Wanxin Media (601801.SH) [1] Core Views - The company achieved stable profit growth in 2023, with a significant increase in the dividend payout ratio, proposing a cash dividend of RMB 3.05 per 10 shares, totaling RMB 5.97 billion, which is approximately 68.90% of the net profit attributable to shareholders [4][12] - The "AI + Education" initiative is expected to gradually establish a commercial model, with various projects such as smart classrooms and reading systems being developed [5][12] - The traditional business, including general books and teaching materials, showed steady growth, with general book revenue increasing by 23.4% year-on-year in Q1 2024 [11] Financial Performance Summary - In 2023, the company reported total revenue of RMB 112.44 billion (YoY -3.79%), with a net profit of RMB 9.36 billion (YoY +32.21%) and a non-net profit of RMB 7.54 billion (YoY +9.66%) [4] - For Q1 2024, revenue was approximately RMB 29.29 billion (YoY -5.44%), with a net profit of about RMB 2.93 billion (YoY -13.28%) and a non-net profit of RMB 3.15 billion (YoY +17.13%) [4] - The company expects revenue for 2024-2026 to be RMB 116.76 billion, RMB 120.36 billion, and RMB 125.16 billion, respectively, with net profits projected at RMB 8.56 billion, RMB 10.14 billion, and RMB 11.92 billion [12] Business Development Summary - The company completed 54 smart classroom projects and organized over 100 training sessions for smart schools [5] - The traditional business is focusing on reducing low-margin operations while expanding high-margin educational services [11] - The company has developed a reading evaluation system and enhanced teacher training programs, serving over 150,000 teachers [5]