SPM(601900) Orient Securities·2025-05-04 10:23Investment Rating - The report maintains a "Buy" rating for the company [3] Core Views - The company reported strong profit performance in Q1 2025, with a significant increase in net profit by 110% year-on-year, reaching 320 million yuan [1] - The company is a leading publishing and distribution enterprise in Guangdong Province, with stable growth in core businesses such as educational materials and general books, while educational services are expected to become another growth point [2] - The company has announced a record high dividend payout ratio of 61%, reflecting its commitment to shareholder returns [7] Financial Performance Summary - In Q4 2024, the company achieved operating revenue of 2.69 billion yuan, a year-on-year decrease of 7.7%, and a net profit of 280 million yuan, down 53.5% year-on-year [1] - For the full year 2024, the company reported operating revenue of 9.17 billion yuan, a decrease of 2.1% year-on-year, and a net profit of 810 million yuan, down 36.9% year-on-year [2] - In Q1 2025, the company recorded operating revenue of 2.11 billion yuan, an increase of 1.2% year-on-year, and a net profit of 320 million yuan, up 110% year-on-year [1][2] Profit Forecast and Valuation - The forecasted net profits for 2025, 2026, and 2027 are 1.15 billion yuan, 1.19 billion yuan, and 1.25 billion yuan respectively, with corresponding EPS of 1.28 yuan, 1.33 yuan, and 1.39 yuan [2] - The target price for 2025 is set at 17.92 yuan, based on a P/E ratio of 14 times [2] Market Performance - The company's stock price as of April 30, 2025, was 16.49 yuan, with a 52-week high of 17.36 yuan and a low of 10.66 yuan [3] - The company has shown strong relative performance against the market, with a 1-week return of 5.5% and a 1-month return of 3.13% [4]