SPM(SH:601900) CHINA DRAGON SECURITIES·2024-05-07 08:00Investment Rating - The investment rating for the company is "Buy" (first coverage) [1] Core Views - The company's main business shows steady growth, with continuous enhancement in dividend distribution [1] - In 2023, the company reported total revenue of 9.365 billion, a year-on-year increase of 3.35%, and a net profit attributable to shareholders of 1.284 billion, a year-on-year increase of 34.39% [1] - The company is leveraging opportunities from the "double reduction" policy in education, expanding after-school services and enhancing digital education platform capabilities [1] Financial Performance Summary - In 2023, the company published 1,077 types of textbooks and 2,847 types of supplementary materials, generating revenue of 2.821 billion from educational publishing, a year-on-year increase of 7.3% [1] - The first quarter of 2024 saw a revenue of 2.088 billion, a year-on-year decrease of 4.86%, and a net profit of 152 million, a year-on-year decrease of 33.96% [1] - The company plans to distribute a cash dividend of 5.40 per 10 shares (including tax), totaling 484 million, which is an increase from the previous year's distribution of 4.70 per 10 shares [1] Earnings Forecast - The company is expected to achieve revenues of 9.665 billion, 10.013 billion, and 10.363 billion for the years 2024, 2025, and 2026 respectively [2][11] - The forecasted net profit for 2024 is 953 million, with a projected decline of 25.74% compared to 2023 [11] - The price-to-earnings ratio (P/E) for 2024 is estimated at 13.2, decreasing to 11 by 2026 [11]