CIWEN(SZ:002343) Haitong Securities·2024-05-15 00:32Investment Rating - The investment rating for the company is "Outperform the Market" [15][22]. Core Insights - The company is a leading state-owned film and television enterprise, initiating a diversified strategic transformation in 2024. The main business of film and television is strengthening high-quality development, establishing close cooperation with major platforms. In 2023, the total revenue was 460 million yuan, a year-on-year decrease of 1.1%, with a net profit attributable to the parent company of 276.3 million yuan, down 43.9% year-on-year, primarily due to receivables impairment reversal and project debt restructuring [3][21][29]. Financial Performance Summary - In 2023, the film and television segment generated revenue of 459 million yuan, a decrease of 1.46% year-on-year, mainly from projects like "Fenghuo Liujin" and "Zichuan Guangming Sanjie" [3][21]. - The gross profit margin for 2023 was 7.8%, down 15.2 percentage points year-on-year [3]. - The company expects total revenue for 2024-2026 to be 638 million yuan, 777 million yuan, and 828 million yuan, with year-on-year growth rates of 38.3%, 21.8%, and 6.6% respectively [29]. Business Segment Insights - The film and television business is the largest segment, with a projected revenue increase to 632 million yuan in 2024, reflecting a growth rate of 37.7% [21]. - The gaming and internet services segment is expected to grow significantly, with revenues projected at 500,000 yuan, 1 million yuan, and 1.5 million yuan for 2024-2026, representing growth rates of 286.2%, 100%, and 50% respectively [21]. Valuation and Price Target - The company is valued using both PE and PB methods, with a reasonable value range of 7.93 yuan to 8.85 yuan per share based on a combination of both valuation methods [22]. - The projected fully diluted EPS for 2024-2026 is 0.15 yuan, 0.20 yuan, and 0.22 yuan per share [22]. Strategic Initiatives - The company aims to build its own short drama platform and develop a combination of long, medium, and short drama production clusters. It is also exploring collaborations in gaming, animation, and derivative products with major platforms [12][29]. - Strategic partnerships have been established with various banks and technology companies to enhance capital market utilization and expand financing channels [29].