Songcheng Performance(SZ:300144) CHINA DRAGON SECURITIES·2024-05-07 08:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance continues to recover, and profitability is expected to further improve. Revenue from live performances reached 1.667 billion yuan in 2023, a year-on-year increase of 315.63%, recovering to 89% of 2019 levels [1][3] - The tourism service sector achieved revenue of 259 million yuan, a year-on-year increase of 357.05%, indicating strong recovery in mature projects and promising growth in new projects [1][3] Financial Performance Summary - In 2023, the company reported revenue of 1.926 billion yuan, a year-on-year increase of 320.76%. However, the net profit attributable to shareholders was a loss of 110 million yuan, a decline of 130.20% year-on-year. Excluding long-term equity investment gains and impairment losses, the net profit would have been 829 million yuan [1][4] - For Q1 2024, revenue was 560 million yuan, a year-on-year increase of 138.70%, with a net profit of 252 million yuan, reflecting a year-on-year growth of 317.33% [1] - The gross profit margins for live performances and tourism services in 2023 were 61.56% and 97.07%, respectively, showing significant improvement compared to 2022 [1] Earnings Forecast - The company is expected to achieve net profits of 1.206 billion yuan, 1.385 billion yuan, and 1.563 billion yuan for the years 2024, 2025, and 2026, respectively. The corresponding price-to-earnings ratios (PE) are projected to be 23.6x, 20.5x, and 18.2x [3][4]