Songcheng Performance(300144) 长江证券·2025-04-29 11:12Investment Rating - The report maintains a "Buy" rating for the company [8]. Core Views - In 2024, the company achieved operating revenue of 2.417 billion yuan, a year-on-year increase of 25.49%, and a net profit attributable to shareholders of 1.049 billion yuan, turning from loss to profit. For Q1 2025, the company reported operating revenue of 561 million yuan, a slight increase of 0.26%, while the net profit attributable to shareholders was 246 million yuan, a decrease of 2.18% [2][6]. - The company is focusing on its core performing arts business, streamlining operations. Upgrades to existing projects are enhancing reception capacity and economic efficiency, while new projects are gradually maturing and generating new contracts, establishing a foundation for stable long-term growth. The projected net profits for 2025-2027 are 1.215 billion, 1.363 billion, and 1.477 billion yuan, with corresponding P/E ratios of 21, 18, and 17 times [2][6]. Summary by Sections Financial Performance - In 2024, the company's cultural and artistic business revenue from live performances and tourism services grew by 17.5% and 76.79% respectively, driven by the success of the Xi'an and Guangdong "Eternal Love" performances. The Xi'an venue achieved a record of 17 shows per day, while the Guangdong venue opened on February 10 and quickly became profitable [12]. - The company's net profit margin turned positive at 44.47% in 2024, compared to a negative margin in 2023 due to impairment losses. The gross margin increased by 1.26 percentage points to 67.61%, although operating expense ratios also rose [12]. Project Development - The company is actively upgrading existing projects and signing new ones. In 2024, it continued to enhance projects like Hangzhou Paradise and Sanya "Eternal Love". A new light-asset project, "Silk Road Eternal Love", is expected to open in July 2026, contributing to the company's growth [12]. Earnings Forecast - The company is expected to see net profits of 1.215 billion, 1.363 billion, and 1.477 billion yuan for 2025, 2026, and 2027 respectively, with P/E ratios of 21, 18, and 17 times. The focus on the performing arts sector and the successful execution of new projects are key drivers for this growth [2][12].