KEDA GROUP(SH:600986) Haitong Securities·2024-05-29 01:01Investment Rating - The investment rating for the company is "Outperform the Market" [2][10]. Core Viewpoints - The company has actively adjusted its business strategy to improve operational quality, resulting in a total revenue of 10.82 billion yuan in 2023, a year-on-year decrease of 26.6%. However, the gross profit margin increased to 6.3%, and the net profit attributable to shareholders rose by 136.1% to 1.92 billion yuan [5][8]. - The company is enhancing its comprehensive marketing capabilities, with brand marketing revenue increasing by 15.1% to 3.04 billion yuan, while performance marketing revenue decreased by 35.5% to 7.78 billion yuan. The focus is on optimizing the client structure and reducing low-margin businesses [6][8]. - The company is advancing its "AI+" initiatives, developing innovative products in virtual human technology and digital cultural services, and has established a wholly-owned subsidiary to support AI-related business and digital cultural development [7][8]. - The completion of a private placement has strengthened the company's financial position, with state-owned shareholder Zhejiang Cultural Investment increasing its stake to 16.47%, enhancing control and resource integration capabilities [7][8]. Financial Summary - The company forecasts revenue growth for brand marketing of 16% in 2024, 15.8% in 2025, and 15.5% in 2026. Performance marketing is expected to grow by 5% annually from 2024 to 2026 [8][10]. - The projected net profit for 2024 is 2.37 billion yuan, with a year-on-year growth of 23.2%, and the fully diluted EPS is expected to be 0.16 yuan [8][10]. - The overall revenue for 2024 is estimated at 11.69 billion yuan, reflecting an 8.1% increase from 2023 [8][10].