Chinese Media(SH:600373) East Money Securities·2024-05-13 08:00Investment Rating - The report assigns an "Accumulate" rating for the company, marking the first coverage [2]. Core Insights - The company reported a revenue of 10.084 billion yuan in 2023, a year-on-year decrease of 1.49%, while the net profit attributable to shareholders was 1.967 billion yuan, an increase of 1.88% [1][6]. - In Q1 2024, the company achieved a revenue of 2.161 billion yuan, down 13.24% year-on-year, and a net profit of 264 million yuan, down 38.32% year-on-year [1]. - The publishing business showed steady growth, with a sales revenue of 10.282 billion yuan in 2023, up 13.95% year-on-year [1][2]. Summary by Sections Financial Performance - In 2023, the company achieved a gross margin of 41.76%, with a net profit margin of 19.38%, reflecting a slight increase of 0.66 percentage points year-on-year [5][10]. - The company plans to distribute a cash dividend of 7.80 yuan per 10 shares, totaling 1.057 billion yuan [1]. Business Development - The company is actively pursuing new business models and technologies, including acquisitions of 100% of Jiangjiao Media and 51% of a university press, aiming to integrate AI and traditional publishing [2]. - The gaming segment is also expanding, with the launch of the product "Wilderness Maze" expected to contribute to revenue growth [2]. Future Projections - Revenue forecasts for 2024-2026 are 11.072 billion yuan, 11.799 billion yuan, and 12.120 billion yuan, respectively, with net profits projected at 1.777 billion yuan, 1.955 billion yuan, and 2.015 billion yuan [6][7]. - The report anticipates a gradual recovery in revenue growth rates, with a projected increase of 9.81% in 2024 [7].