WANXIN MEDIA(SH:601801) Guoyuan Securities·2024-05-12 06:00Investment Rating - The report maintains a "Buy" rating for the company [2][17]. Core Views - The company's core business shows steady growth, with a focus on digital upgrades that are expected to yield positive results in the future [2]. - In 2023, the company achieved a revenue of 11.244 billion yuan, a slight decrease of 3.79% year-on-year, while the net profit attributable to shareholders increased by 32.21% to 936 million yuan [2]. - The company has actively engaged in shareholder returns through dividends, distributing 3.05 yuan per 10 shares [2]. Summary by Relevant Sections Financial Performance - In 2023, the company's revenue was 11.244 billion yuan, with a net profit of 936 million yuan, reflecting a year-on-year increase of 32.21% [2]. - The first quarter of 2024 saw a revenue of 2.929 billion yuan, down 5.44% year-on-year, with a net profit of 293 million yuan [2]. - The gross profit margin for the core business improved, with the educational materials segment achieving a revenue of 1.751 billion yuan, up 2.43% year-on-year [2]. Business Development - The company is enhancing its supply chain services and integrating online and offline bookstore operations, covering 200 stores and serving 420,000 users, a 203% increase year-on-year [2]. - The logistics service segment generated a revenue of 3.798 billion yuan, a slight decrease of 3.54% year-on-year, while the educational research segment saw a remarkable growth of 607.33% in sales revenue [2]. Future Outlook - The company is expected to benefit from its focus on AI and smart education, with projected net profits of 775 million yuan, 969 million yuan, and 1.148 billion yuan for 2024, 2025, and 2026 respectively [2]. - Earnings per share (EPS) are forecasted to be 0.39 yuan, 0.49 yuan, and 0.58 yuan for the same years, with corresponding price-to-earnings ratios of 19, 15, and 13 times [2].