Core Viewpoint - Songcheng Performance experienced a decline of 4.19% on August 27, with a trading volume of 942 million yuan, indicating potential market volatility and investor sentiment concerns [1] Financing Summary - On August 27, Songcheng Performance had a financing buy-in of 174 million yuan and a repayment of 132 million yuan, resulting in a net financing buy of 41.67 million yuan [1] - As of August 27, the total financing and securities lending balance for Songcheng Performance was 1.077 billion yuan, with the financing balance at 1.071 billion yuan, accounting for 4.71% of the circulating market value, which is above the 90th percentile of the past year [1] - In terms of securities lending, on August 27, 1,300 shares were repaid while 4,400 shares were sold, with a selling amount of 38,200 yuan at the closing price [1] Business Overview - Songcheng Performance, established on September 21, 1994, and listed on December 9, 2010, is primarily engaged in live performance and tourism services [2] - The revenue composition includes: Hangzhou Songcheng Tourist Area (25.36%), e-commerce service fees (12.56%), and various scenic areas contributing between 1.04% to 9.88% [2] - For the first half of 2025, the company reported a revenue of 1.08 billion yuan, a year-on-year decrease of 8.3%, and a net profit attributable to shareholders of 400 million yuan, down 27.4% year-on-year [2] Dividend and Shareholder Information - Since its A-share listing, Songcheng Performance has distributed a total of 2.412 billion yuan in dividends, with 917 million yuan distributed in the last three years [3] - As of June 30, 2025, the top ten circulating shareholders included Hong Kong Central Clearing Limited as the second-largest shareholder with 65.5163 million shares, an increase of 25.1412 million shares from the previous period [3] - Other notable shareholders include E Fund's ChiNext ETF and China Europe Pension Mixed A, with varying changes in their holdings [3]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 15% compared to the market in the next six months [15]. Core Views - The company has shown strong revenue growth driven by new projects, with 2024 revenue reaching 2.417 billion yuan, a year-on-year increase of 25.49%, and a net profit of 1.049 billion yuan, marking a return to profitability [1][2]. - The light asset business has significantly contributed to revenue, achieving 1.85 billion yuan in 2024, a substantial increase of 118.56% year-on-year, and accounting for 7.65% of total revenue [2]. - The company is expected to benefit from favorable national and regional service consumption policies, with projected net profits for 2025-2027 at 1.163 billion, 1.295 billion, and 1.417 billion yuan respectively [3]. Summary by Sections Financial Performance - In 2024, the company achieved a gross margin of 67.60%, an increase of 1.25 percentage points year-on-year, while the sales expense ratio rose to 5.79% due to increased advertising expenditures [3]. - For Q1 2025, the gross margin slightly decreased to 68.09%, with a net profit margin of 45.10%, reflecting a minor decline of 0.44 percentage points year-on-year [3]. Revenue Breakdown - New projects have been a key growth driver, with the newly opened Guangdong Qian Guqing generating 256 million yuan in revenue, accounting for over 10% of total revenue [2]. - The Hangzhou Songcheng Tourist Area remains the largest revenue contributor, generating 637 million yuan in 2024, although it saw a decline of 2.71% year-on-year [2]. Profit Forecast - The company’s earnings per share (EPS) are projected to be 0.44, 0.49, and 0.54 yuan for 2025, 2026, and 2027 respectively, with corresponding price-to-earnings (PE) ratios of 21, 19, and 17 times [3][5].