Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Views - The company achieved a revenue of 4.19 billion RMB in H1 2024, representing a year-on-year increase of 27.7%. Gross profit reached 2.08 billion RMB, up 29.8%, while Non-IFRS net profit was 700 million RMB, an increase of 16.4%. The profit attributable to equity holders was 500 million RMB, up 33.9% [2]. - The revenue growth was primarily driven by the release of popular TV series. The revenue from New Classics Media surged to 1.05 billion RMB in H1 2024, a 93.2% increase compared to H1 2023, supported by the concentrated airing of several series [2]. - The company faced some profit pressure due to impairment losses on certain film and television projects amounting to 190 million RMB in H1 2024, which was not present in the same period of 2023 [2]. - The reading business saw a slight decline in revenue by 2.2% year-on-year, while copyright operations revenue increased by 73.3% [2]. - The company has a rich pipeline of TV series for 2025-2026, with over 10 series planned, including titles like "The Drug Storm" and "The Independent Woman" [2]. Financial Summary - The company is projected to achieve Non-IFRS net profits of 1.4 billion RMB, 1.5 billion RMB, and 1.6 billion RMB for the years 2024, 2025, and 2026 respectively, with growth rates of 23.97%, 7.45%, and 6.30% [3]. - The expected revenue for 2024 is 7.01 billion RMB, with a growth rate of 17.03% [3]. - The company's gross margin is expected to improve to 50.73% in 2024, with a net margin of 12.18% [3]. Business Developments - The company has seen a rise in paid user numbers from 7.9 million in 2022 to 8.8 million in H1 2024, with the payment rate increasing from 3.2% in 2022 to 5.0% in H1 2024 [2]. - The company is actively expanding its overseas web literature offerings, with approximately 5,000 Chinese translated works and 650,000 local original works available as of June 2024 [2]. - The integration of AI in translation has significantly improved efficiency, reducing costs by 90% and increasing output by 100 times compared to manual translation efforts [2].
阅文集团：IP联动日趋成熟，腾讯动漫注入