WANXIN MEDIA(601801) 海通证券·2024-09-10 08:38Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The company experienced a decline in revenue and net profit in the first half of 2024, with revenue at 5.212 billion yuan, down 13.59% year-on-year, and net profit at 579 million yuan, down 20.09% year-on-year. However, the gross margin improved to 24.87%, an increase of 4 percentage points [4] - The company plans to distribute a cash dividend of 1.00 yuan per 10 shares, totaling approximately 196 million yuan, which represents 60.85% of the net profit for the first half of 2024 [4] - The company is focusing on expanding its educational services and has made significant progress in its research and study business, serving 88,000 students in the first half of 2024, with revenue growth of 80.22% [4] - The company is also exploring the gaming business, developing a supply chain for game products, and has established partnerships for overseas distribution [4] - The online bookstore matrix has been expanded, achieving sales of 370 million yuan in the first half of 2024, a year-on-year increase of 34.5% [5] Summary by Sections Financial Performance - In the first half of 2024, the company reported revenue of 5.212 billion yuan, a decrease of 13.59% year-on-year, and a net profit of 579 million yuan, down 20.09% year-on-year. The gross margin improved to 24.87%, an increase of 4 percentage points [4] - The company expects revenues to decline slightly in 2024, with projected revenues of 10.832 billion yuan, down 3.66% year-on-year, and a net profit of 831 million yuan, down 11.2% year-on-year [6][10] Business Development - The company is actively developing its educational services, having issued 1.8 billion textbooks and auxiliary materials in the spring of 2024, and is enhancing its online education platform, which has 5.254 million users and generated 730 million yuan in revenue, a 120% increase year-on-year [4] - The gaming business is being developed with a focus on creating a supply chain for game products, including notable titles such as "The Legend of Sword and Fairy" and "Black Myth: Wukong" [4] - The company has established a matrix of 36 online bookstores, achieving sales of 370 million yuan in the first half of 2024, a year-on-year increase of 34.5% [5] Earnings Forecast - The company is projected to have earnings per share (EPS) of 0.42 yuan in 2024, 0.49 yuan in 2025, and 0.54 yuan in 2026, with a dynamic price-to-earnings (PE) ratio of 17-20 times, indicating a reasonable value range of 7.14-8.40 yuan per share [7]