Investment Rating - The investment rating for the company is "Buy" and is maintained [1] Core Views - The company is focusing on shareholder returns and the new park's establishment is expected to empower diversified development [4] - The traditional main business is under pressure, while the digital and media segments show impressive growth [5] - The company plans to distribute dividends of approximately 1.8 billion yuan, reflecting its commitment to shareholder returns [8] Company Overview - Latest closing price: 12.20 yuan - Total shares: 1.796 billion - Total market capitalization: 21.9 billion yuan - 52-week high/low: 15.14/12.02 yuan - Debt-to-asset ratio: 40.1% - Price-to-earnings ratio: 16.05 [3] Financial Performance - In H1 2025, the company achieved revenue of 6.335 billion yuan, a year-on-year decrease of 8.09%, and a net profit of 1.017 billion yuan, down 31.46% [4] - The publishing business generated revenue of 5.327 billion yuan in H1 2025, a decline of 9.26%, while the digital and media business saw revenue growth of 44.89% [5][6] - The comprehensive gross margin improved to 45.84%, an increase of 1.26 percentage points year-on-year [6] Future Projections - Expected revenues for 2025, 2026, and 2027 are 13.7 billion, 14.2 billion, and 14.8 billion yuan respectively, with corresponding net profits of 1.72 billion, 1.83 billion, and 1.89 billion yuan [9] - Earnings per share (EPS) are projected to be 0.96, 1.02, and 1.05 yuan for the years 2025, 2026, and 2027 [9] Valuation Metrics - The company is expected to have a price-to-earnings ratio of 13, 12, and 12 times for the years 2025, 2026, and 2027 respectively [9]

Core Insights - The company reported a revenue of 6.335 billion yuan, a year-on-year decrease of 8.09%, while the net profit attributable to shareholders was 1.017 billion yuan, a year-on-year increase of 31.46% [1][2] - The company continues to implement a strategy of multiple dividends per year, with a proposed cash dividend of 1 yuan per 10 shares for the mid-2025 period, totaling nearly 180 million yuan [2] Business Performance - In the publishing sector, the company achieved a market share of 5.25% in the national book retail market, an increase of 0.05 percentage points year-on-year, ranking second; in the new book retail market, the share was 6.07%, ranking first [1] - The company’s educational service market initiatives, including the "Four-Dimensional Reading" series and "Primary and Secondary School Reading Action" series, generated sales of 338 million yuan, a year-on-year increase of 9% [1] Digital Education Sector - The total number of users for the "Beike Network" reached 8.52 million, while the "Xiangjiao Smart Cloud" had 700,000 users, with a total platform access of over 39 million times in the first half of the year [2] - The mobile application "A+ Education" had 6.37 million users, with an increase of 100,000 in the half-year period [2] Future Plans - The company plans to focus on cultivating new productive forces, emphasizing the integration of "culture + technology," and aims to enhance operational efficiency and governance capabilities [2] - The company intends to deepen the development of quality content and improve educational service capabilities to drive high-quality growth [2]