Zhejiang Meorient Commerce & Exhibition (SZ:300795) GF SECURITIES·2024-05-09 00:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 29.81 CNY per share, indicating a potential upside from the current price of 21.98 CNY [22]. Core Insights - The company is undergoing a positive trend towards specialization, successfully transitioning its overseas exhibition business from general to specialized exhibitions, launching eight major specialized exhibitions in 2023 [4]. - The company's Q1 2024 performance met expectations, with revenue of 76.13 million CNY, a year-on-year increase of 12.2%, and a net profit attributable to shareholders of 4.81 million CNY, up 349.4% year-on-year [5]. - The gross margin slightly decreased to 54.4%, down 3.8 percentage points year-on-year, primarily due to hosting two exhibitions in Q1 2024 compared to one larger exhibition in Q1 2023 [5]. - The company is expected to host a total of 14 exhibitions in 2024, with a focus on the second half of the year, which is anticipated to drive profit growth [21]. Financial Summary - For the fiscal years 2022 to 2026, the company is projected to achieve significant revenue growth, with expected revenues of 1.15 billion CNY in 2024, 1.47 billion CNY in 2025, and 1.80 billion CNY in 2026, representing year-on-year growth rates of 38.0%, 27.4%, and 22.9% respectively [25]. - The net profit attributable to shareholders is forecasted to reach 271 million CNY in 2024, 355 million CNY in 2025, and 455 million CNY in 2026, with growth rates of 44.0%, 31.1%, and 28.1% respectively [25]. - The company's earnings per share (EPS) is expected to be 1.18 CNY in 2024, 1.55 CNY in 2025, and 1.98 CNY in 2026 [25].