Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company reported a revenue of 579 million yuan in 2024, a year-on-year decrease of 14.42%, and a net profit of 41.77 million yuan, with a proposed cash dividend of 2.1 yuan per 10 shares, a decrease of 68.94% year-on-year [2] - In Q1 2025, the company achieved a revenue of 94 million yuan, a year-on-year increase of 171.12%, but reported a net loss of 1.32 million yuan [2] - The company is focusing on cultural and technological innovation, exploring C-end business through immersive experiences and AR technology [4] Summary by Sections Revenue and Profitability - The company's gross margin in 2024 was 32.14%, down 5.23 percentage points year-on-year. The gross margin for large cultural performances was 28.65%, down 8.80 percentage points, while the cultural tourism performance margin was 34.22%, down 0.96 percentage points [3] - The company had a total order backlog of 368 million yuan at the end of 2024, with 87.88 million yuan from large cultural performance projects and 280 million yuan from cultural tourism performance projects [3] Business Strategy - The company has been transitioning from B-end large events to C-end cultural tourism consumption since 2022, with projects like the Shanghai 632 project generating 32.20 million yuan in revenue and 7.67 million yuan in net profit in 2024 [4] - The company is leveraging technology in cultural performances, including the use of AR, 3D technology, and drone shows to enhance user experience [4] Market Outlook - The "first launch economy" has been identified as a key task by the central economic work conference, which is expected to boost domestic demand and benefit the cultural tourism sector [5] - The tourism economy index has shown a year-on-year increase of 2.1%, indicating a positive trend in the industry [5] Financial Forecast - Revenue projections for 2025-2027 are 693 million yuan, 783 million yuan, and 866 million yuan respectively, with net profits expected to be 140 million yuan, 153 million yuan, and 167 million yuan [6] - The estimated EPS for 2025-2027 is 0.73 yuan, 0.80 yuan, and 0.87 yuan, with corresponding PE ratios of 36, 33, and 30 times [6]

Financial Performance - The company achieved operating revenue of 57,918.77 million yuan, a decrease of 14.42% compared to the same period last year [3] - The net profit attributable to shareholders was 4,177.25 million yuan, down 68.94% year-on-year, primarily due to increased credit impairment losses and declining operating revenue [3] Project Updates - The opening ceremony project for the 2025 Asian Winter Games was successfully premiered on February 7, 2025, with a project amount of 8,788 million yuan, recognized in Q1 2025 [3] - The large-scale performance project "Dreaming Dazhong" is valued at 8,990 million yuan, with expected revenue recognition in Q2 2025 [3] C-end Business Operations - The company has several C-end operational projects, including: - "Sky632" located on the 126th floor of Shanghai Tower, with a 60% ownership stake [4] - "Xianghu Yuyun" in Hangzhou, with a 75% ownership stake, set to premiere on June 30, 2024 [4] - "On the Sea of Qingdao" in Shandong, with a 30% ownership stake, scheduled to premiere on July 12, 2024 [5] - The focus on C-end business is expected to provide more opportunities and enhance business stability and sustainability [5] Strategic Initiatives - The company plans to expand its business scope to include import and export activities, responding to the "cultural going global" strategy [5] - The company is actively exploring the integration of AI and performance arts, considering strategic mergers and acquisitions to diversify its business [9] Financial Management - The company has accumulated cash dividends of 193 million yuan and share repurchases of 100 million yuan from 2020 to 2024 [11] - As of December 31, 2024, the accounts receivable amounted to 613 million yuan, with a bad debt provision of 307 million yuan, representing a provision rate of approximately 50.08% [12] Shareholder Engagement - The company plans to offer limited edition performance tickets for specific cultural tourism projects as a gesture of appreciation to shareholders [11] - As of April 18, 2025, the number of shareholders was 14,419 [16]

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company experienced a significant revenue increase in Q1 2025, driven by the completion of the Harbin Winter Games project, which contributed 87.88 million yuan to revenue. The net loss for Q1 2025 was reduced by 77.58% year-on-year [4] - The company is optimistic about the continuous expansion of its C-end projects, which are expected to provide growth opportunities [4] Financial Performance Summary - In 2024, the company's operating revenue was 579 million yuan, a decrease of 14.42% year-on-year, while the net profit attributable to the parent company was 41.77 million yuan, down 68.94% year-on-year. For Q1 2025, the operating revenue was 94 million yuan, an increase of 171.12% year-on-year, with a net loss of 1.32 million yuan [4][5] - The company forecasts net profits for 2025-2027 to be 117 million, 168 million, and 204 million yuan respectively, with corresponding EPS of 0.61, 0.88, and 1.07 yuan [4][7] Revenue Structure and Profitability - The revenue from large-scale performance activities in 2024 was 217 million yuan, a decrease of 52.06% year-on-year, while the revenue from cultural tourism performances was 352 million yuan, an increase of 65.45% year-on-year, accounting for 60.83% of total revenue [5] - The gross profit margin for cultural tourism performances was 34.22%, showing a slight decrease of 0.96 percentage points year-on-year [5] Order Backlog and Technological Innovation - As of the end of 2024, the company had a total order backlog of 368 million yuan, including several significant projects [6] - The company is leveraging innovative technologies such as motion capture and 3D displays to enhance its performance offerings, which is expected to improve the immersive experience [6] Valuation Metrics - The company's projected P/E ratios for 2025, 2026, and 2027 are 40.4, 28.2, and 23.2 respectively, indicating a potential for valuation improvement as earnings grow [7]