Core Viewpoint - The article highlights the significant growth and transformation of Zhao Xun Media, emphasizing its role in the digital media landscape, particularly in high-speed rail and urban advertising sectors, as well as its commitment to sustainability and technological innovation [1][11]. Group 1: Business Transformation and Growth - Zhao Xun Media has evolved from a simple media supplier to a comprehensive solution provider integrating media resources, digital technology, and marketing services over the past five years [2]. - The company has expanded its high-speed rail digital media resources, adding over a hundred new station resources, and now covers 493 railway passenger stations, with 98.8% being high-speed rail stations [4]. - By June 2025, Zhao Xun Media's digital media resources are expected to reach an annual passenger flow of over 2 billion people [4]. Group 2: Technological Innovation - The company has replaced traditional television video machines with digital display technology, enhancing advertising conversion rates and brand communication effectiveness [4]. - Zhao Xun Media has invested in advanced technologies such as virtual reality (VR), naked-eye 3D, and artificial intelligence-generated content (AIGC) to innovate outdoor advertising and create new growth points [5]. - The integration of AI and 3D technology in outdoor advertising has led to significant improvements in content creation efficiency and quality [8]. Group 3: Market Position and Consumer Engagement - Zhao Xun Media has established a nationwide digital media network, covering approximately 97% of high-speed rail stations, which allows for integrated advertising services across regions [7]. - The company has diversified its client base, extending from home appliances and liquor to international brands, fast-moving consumer goods, luxury goods, and automotive sectors [7]. - The rise in railway passenger flow has led to a concentration of advertising budgets on high-quality media, benefiting Zhao Xun Media's operations [7]. Group 4: Sustainability and ESG Initiatives - Zhao Xun Media has adopted a green low-carbon development approach, implementing smart lighting technology in LED screens to reduce energy consumption [11]. - The company has achieved UL energy-saving certification for its LED screens, becoming one of the first outdoor advertising media in China to receive international environmental certification [11]. - In 2024, Zhao Xun Media launched 52 public welfare advertisements, addressing various social issues and enhancing public education [11]. Group 5: Future Outlook - The company aims to continue its growth trajectory by integrating ultra-high-definition video and AI technologies, positioning itself as a leader in the digital advertising industry [12].

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Insights - The company reported a total revenue of 3.509 billion yuan in 2024, a year-on-year increase of 2.87%, while the net profit attributable to shareholders decreased by 23.29% to 659 million yuan, primarily due to asset impairment losses and increased media resource costs [6] - In Q1 2025, the company achieved a revenue of 1.698 billion yuan, a slight decrease of 1.06% year-on-year, but the net profit attributable to shareholders rose by 9.56% to 618 million yuan, aligning with expectations [6] - The heating and steam business revenue grew by 4.05% to 2.275 billion yuan in 2024, with a gross profit of 556 million yuan, reflecting a 10.96% increase [6] - The company has a strong cash position with 7.393 billion yuan in cash, representing 43% of total assets, which supports its dividend and share repurchase strategies [6] Financial Data and Profit Forecast - Total revenue forecast for 2025 is 3.632 billion yuan, with a year-on-year growth of 3.5% [5] - The net profit attributable to shareholders is projected to be 841 million yuan in 2025, reflecting a significant increase of 27.6% [5] - The company plans to distribute a cash dividend of 0.2 yuan per share, which is 67.5% of the net profit, along with a special dividend of 0.12 yuan per share, totaling 712 million yuan in dividends [6] - The estimated PE ratios for 2025 and 2026 are 16 and 15, respectively, with a reasonable market value of 165 billion yuan, indicating a potential upside of 22% from the current market capitalization [6]