Maintain an increase in holdings. Considering the full recovery of the company's various businesses, maintain the 2024/25 EPS of 0.58/0.61 yuan, and add the 2026 EPS of 0.65 yuan. A valuation of 21xPE was given in 2024, and the target price was maintained at 12.08 yuan, and the increase was maintained.
Performance summary: In 2023, we achieved operating income of 1,422 million/ +83.93%, net profit attributable to mother of 275 million yuan/ +140.46%, after deducting net profit of 221 million/ +60.45%. Looking at a single quarter, Q4 achieved operating income of 459 million/ -18.35%, net profit attributable to mother of 33 million/ -72.66%, and net profit not attributable to mother of 59 million/ -49.02%. In 2023, it is planned to distribute RMB 2.8 for every 10 shares transferred by 4.0 shares, for a total cash dividend of RMB 146 million.
The company's various businesses have fully resumed, and regional expansion has been achieved in various ways. The company's conference, exhibition, competition, and hall businesses have fully recovered. A total of 13 large-scale conference events have been held throughout the year, 18 exhibitions have been hosted, and 8 events have been held. The Shanghai World Expo Exhibition Hall in operation has undertaken a total of 95 projects. Focus on the “Exhibition China” strategy and vigorously achieve regional expansion through various methods such as project cooperation, equity cooperation, and strategic cooperation.
Digitization capabilities are constantly improving, and management levels are constantly improving. The company has comprehensively sorted out the existing digital architecture and built a comprehensive “digital exhibition” management system from six dimensions, which has greatly enhanced its digital capabilities. The company initiated the construction of a brand planning system and set sail with a new image of “DEPO”. At the same time, corporate governance, internal control, etc. have all been upgraded, and management capabilities have been effectively improved.
Risk warning: macroeconomic downturn, IP influence weakens; strategic progress falls short of expectations.