SPM(SH:601900) Guohai Securities·2024-05-12 08:30Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [13]. Core Views - The company has shown stable growth in its main business, although its Q1 2024 performance was impacted by changes in income tax rates [2][3]. - The company is actively pursuing digital transformation and educational service expansion, leveraging its core strengths in educational materials [5][6]. - The company is expected to face some pressure on earnings growth in 2024 due to tax rate changes, but it is projected to achieve revenue growth in the coming years [13]. Financial Performance Summary - In 2023, the company achieved a revenue of 9.365 billion yuan, a year-on-year increase of 3.35%, and a net profit of 1.284 billion yuan, up 34.39% year-on-year [10][32]. - For Q1 2024, the company reported a revenue of 2.088 billion yuan, down 4.86% year-on-year, and a net profit of 152 million yuan, down 33.96% year-on-year [3][10]. - The decline in Q1 revenue was primarily due to the delay in the collection of expected receivables from educational materials [3]. Business Strategy and Growth Drivers - The company is focusing on consolidating its core advantages in educational materials while expanding its after-school services and building a digital education platform [5][12]. - The "Yuejiao Xiangyun Digital Textbook Application Platform" has seen significant user engagement, with nearly 43 million active users, reflecting a year-on-year increase of 95.77% [6]. - The company is exploring new business avenues, such as children's programming, through joint ventures [33]. Earnings Forecast - The company is projected to achieve revenues of 10.256 billion yuan, 11.194 billion yuan, and 12.424 billion yuan for 2024, 2025, and 2026, respectively [13][15]. - Corresponding net profits are expected to be 1.011 billion yuan, 1.083 billion yuan, and 1.185 billion yuan for the same years [13][16].