DLG EXPO(600826) 华西证券·2024-05-07 10:12Investment Rating - The report assigns a "Buy" rating to the company, with a target price based on a PE ratio of 16x for 2024 and 15x for 2025, maintaining the "Buy" rating due to favorable earnings projections [23][35]. Core Insights - The company exceeded its performance commitments for 2023, achieving a revenue of 1.42 billion yuan, a year-on-year increase of 84%, and a net profit of 275 million yuan, up 140.5% year-on-year [4][12]. - The first quarter of 2024 showed significant growth in revenue, reaching 177 million yuan, a year-on-year increase of 228.72%, although the net profit was a loss of 5.24 million yuan, indicating a reduction in losses compared to the previous year [5][24]. - The company is focusing on nurturing new exhibition IPs and expanding its international strategy, which is expected to enhance its market position [28]. Financial Performance Summary - In 2023, the company hosted 13 large conferences and 18 exhibitions, with a total area exceeding 1.1 million square meters and serving over 1.3 million attendees [12]. - The revenue breakdown for 2023 includes 760 million yuan from exhibition organization (up 246.8%), 220 million yuan from supporting services (down 6.6%), 160 million yuan from events (up 58.9%), and 270 million yuan from venue operations (up 1007.8%) [12]. - The gross profit margin for 2023 was 31.9%, with a decrease in sales and management expense ratios compared to 2021 [25]. Future Projections - The company is projected to achieve revenues of 1.67 billion yuan in 2024, 1.90 billion yuan in 2025, and 2.10 billion yuan in 2026, with corresponding net profits of 300 million yuan, 320 million yuan, and 340 million yuan respectively [35]. - The report anticipates an EPS of 0.56 yuan for 2024, increasing to 0.63 yuan by 2026 [35].