Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook based on its performance and growth potential [9]. Core Insights - The company has demonstrated significant growth in IP-derived revenue, which has more than doubled, alongside diversified exploration in its performance business [2][9]. - For FY26H1, the company reported a revenue of 4.05 billion RMB, a year-on-year increase of 33%, and a net profit attributable to shareholders of 520 million RMB, reflecting a 54% growth [6][9]. - The adjusted EBITDA for FY26H1 was 550 million RMB, showing a 14% increase after excluding a one-time financial asset impairment reversal from FY25H1 [6][9]. Financial Data and Profit Forecast - The company’s revenue projections for FY2024 to FY2028 are as follows: - FY2024: 5.036 billion RMB (YoY +43%) - FY2025: 6.702 billion RMB (YoY +33%) - FY2026E: 8.510 billion RMB (YoY +27%) - FY2027E: 9.982 billion RMB (YoY +17%) - FY2028E: 11.336 billion RMB (YoY +14%) [8][10]. - Net profit attributable to ordinary shareholders is forecasted to grow significantly, with FY2026E projected at 1.043 billion RMB, a 187% increase from FY2025 [8][10]. - The report highlights an improvement in management efficiency, with a decrease in management expense ratio to 16.5% in FY26H1, down 3.1 percentage points year-on-year [9]. Business Segments Performance - The IP-derived business segment saw a revenue of 1.16 billion RMB in FY26H1, up 105% year-on-year, with a gross profit of 230 million RMB, reflecting a 44% increase [9]. - The performance segment generated 1.34 billion RMB in revenue, a 14.5% increase year-on-year, with a segment profit of 750 million RMB, up 4.7% [9]. - The film segment reported a revenue of 1.06 billion RMB in FY26H1, a decrease of 15% year-on-year, while the series production segment turned profitable with a revenue of 480 million RMB [9].

Investment Rating - The report maintains an "Accumulate" rating for Lijiang Co., indicating a forecasted relative performance increase of 5% to 15% over the next 6 to 12 months [2][8]. Core Views - The company is expected to achieve stable operations in 2024, with Q4 revenue performance showing double growth. The dividend proposal remains consistent with the previous year, yielding a dividend rate of 3.5% based on the closing price on March 18 [3][5]. - The company’s 2024 revenue is projected at 808 million yuan, reflecting a year-on-year growth of 1.2%, while the net profit attributable to shareholders is expected to be 211 million yuan, down 7.3% year-on-year due to fluctuations in gross margin and expense ratios [5][6]. Financial Performance Summary - **Revenue Forecast**: - 2023A: 799 million yuan - 2024A: 808 million yuan - 2025E: 866 million yuan - 2026E: 936 million yuan - 2027E: 967 million yuan - Year-on-year growth rates: 152% (2023A), 1% (2024A), 7% (2025E), 8% (2026E), 3% (2027E) [2][5]. - **Net Profit Forecast**: - 2023A: 227 million yuan - 2024A: 211 million yuan - 2025E: 250 million yuan - 2026E: 283 million yuan - 2027E: 303 million yuan - Year-on-year growth rates: 6072% (2023A), -7% (2024A), 18% (2025E), 13% (2026E), 7% (2027E) [2][5]. - **Earnings Per Share (EPS)**: - 2023A: 0.41 yuan - 2024A: 0.38 yuan - 2025E: 0.45 yuan - 2026E: 0.52 yuan - 2027E: 0.55 yuan [2][5]. - **Valuation Ratios**: - P/E: 24.0 (2023A), 25.9 (2024A), 21.9 (2025E), 19.3 (2026E), 18.0 (2027E) - P/B: 2.2 (2023A), 2.2 (2024A), 2.0 (2025E), 1.9 (2026E), 1.8 (2027E) [2][5]. Business Segment Performance - The company’s core business segments, including cableway and performance services, continue to show growth. In 2024, the total number of visitors to the three cableways reached 6.6684 million, an increase of 8.9% year-on-year. The revenue from cableway services was 410 million yuan, up 7.0% year-on-year, while performance revenue was 140 million yuan, reflecting a 2.5% increase [5][6]. - The hotel business remains under pressure, with a revenue of 167 million yuan in 2024, down 11.1% year-on-year. The company continues to expand its hotel offerings, including the opening of a luxury hotel in July 2024 [5][6].