XMGF(SZ:300770) Guoxin Securities·2024-05-06 07:10Investment Rating - The report maintains an "Accumulate" rating for the company [3][11][26]. Core Views - The company demonstrated stable operations in 2023, with a revenue growth of 6.6% year-on-year, reaching 1.52 billion yuan. However, the net profit for the same year was 710 million yuan, reflecting a modest growth of 2.4% [5][17]. - The first quarter of 2024 is expected to see a decline in net profit by 13.2% due to the loss of tax exemptions, despite a revenue increase of 12.3% [5][11]. - The IPTV and internet audio-visual segments are showing steady progress, while the content copyright business is exploring new models due to cyclical and uncertain returns [10][11]. Summary by Sections Business Performance - IPTV basic business generated 810 million yuan in revenue in 2023, up 9.1% year-on-year, with effective users decreasing by 1.7% to 19.51 million [10][11]. - Internet audio-visual business revenue reached 610 million yuan, a 7.3% increase, with IPTV value-added and internet TV revenues at 400 million and 210 million yuan, respectively [10][11]. - Content copyright revenue fell by 15.0% to 8.9 million yuan due to investment and return uncertainties [10][11]. Future Outlook - The company is focusing on strengthening its IPTV core business while exploring new avenues, including collaborations with various institutions for innovative applications in the metaverse [10][11]. - The company aims to enhance its content production capabilities and optimize content creation through data analysis and AI technology [10][11]. Financial Projections - The net profit forecast for 2024-2026 is adjusted to 633 million, 679 million, and 728 million yuan, reflecting a year-on-year growth rate of -11%, 7%, and 7%, respectively [11][18]. - The diluted EPS is projected to be 2.74, 2.94, and 3.15 yuan for the years 2024, 2025, and 2026, with corresponding PE ratios of 14, 13, and 12 times [11][18].