Event: the company achieved operating income of 873 million yuan in the first half of 2023, an increase of 2.92% over the same period last year, and a net profit of 91 million yuan, an increase of 1.35% over the same period last year.
The advantages of subdivision in the field are steadily rising. From the perspective of business, the revenue of the company's book and publishing business increased by 3.25% to 688 million yuan compared with the same period last year, while the cultural consumption business (mainly bookstore revenue) decreased by 0.22% to 229 million yuan. The sales performance of online and offline channels is better than that of the book industry. According to the company's report, the company's market share in the book market reached 3.47% in the first half of this year, up 0.48 percentage points from the same period last year, and continues to rank first among publishers. The company has steadily increased its market share in subcategories such as economics and management, children's, psychological self-help and biographies. The real market share of economic and management books is 14.19%, up 0.43% from the same period last year, ranking first among publishers. Children's real foreign market share is 4.32%, up 1.02% from the fourth in the same period last year. The market share of psychological self-help and biography increased by 1.01 and 0.74 percentage points respectively compared with the same period last year, ranking first.
Live e-commerce channels are growing at a high speed. The company actively grasps the channel development opportunity of short video e-commerce. According to the open-book data, the channel sales of short video e-commerce increased by 47% in the first half of 2023 compared with the same period last year. The company increased its investment in this channel during the reporting period, and the average GMV of the official live broadcast interval increased by 329% in the first half of 2023 compared with the same period last year.
The production capacity of head books has been enhanced, and it is optimistic that AIGC will help the transformation and upgrading of book publishing. The company's refined operating strategy has achieved sustained results, with an increase in the number of head books. In the first half of 2023, the company made a total of 311 TOP 500 bestsellers in 10 major categories, an increase of 4.4% from a year earlier.
In the face of emerging technologies, the company actively explored various application scenarios of AIGC technology in publishing, set up a parallel publishing laboratory during the reporting period, and basically completed the construction of AIGC Mathematical Intelligence Publishing integrated tool platform. AIGC tools have played a significant role in book topic selection, translation, revision and marketing.
Profit forecast and investment advice: the company's annual return net profit in 2023-24-25 is expected to be 1.85% 2.44 / 294 million yuan, compared with the same period last year, + 47%, 32%, 20%. Maintain the "overweight" rating.
Risk hint: the recovery of the book industry is not as expected; market competition intensifies.