7 月发布全新数智化战略，产品模块初成型。为响应中信集团的数字化转型目标，公司加紧入局AI 领域，基于自身资源优势推出出版知识库、垂类夸父AI 平台。此外为满足版权溯源和商品化、出版流程数字化等行业需求，推出书讯出版平台。场景方面，公司积极探索数字阅读、虚拟互动等C 端场景，以及学习培训等B 端场景。从平台到场景，各类产品已具备输出能力。Core views
The results of reducing costs and increasing efficiency in the second quarter were evident. The 2Q24 company's gross margin was 39.05%, up 4.04pct year on year; the absolute value of expenses for the period remained flat year on year. In 2Q24, with revenue falling slightly by 9.63% year over year to 0.403 billion yuan, profit before tax increased 27.44% year over year to 0.068 billion yuan.
High-quality IP reserves are abundant to accelerate the promotion of animation cultural and creative strategies. Facing fluctuations in the publishing industry, the company collaborated with high-quality IPs to drive 1H24 animation book publishing revenue +30% year-on-year; at the same time, expanding IP derivatives and themed bookstores, it is expected to contribute to new business growth.
A new digital intelligence strategy was released in July, and the product module was initially formed. In response to CITIC Group's digital transformation goals, the company stepped up its entry into the AI field and launched a publishing knowledge base and exaggerated AI platform based on its own resource advantages. Furthermore, in order to meet industry needs such as copyright traceability and commercialization, and digitization of publishing processes, a book news publishing platform was launched. In terms of scenarios, the company actively explores C-side scenarios such as digital reading and virtual interaction, as well as B-side scenarios such as learning and training. From platforms to scenarios, all kinds of products already have output capabilities.
We expect that in 2024-2026, the company will achieve a net profit of 1.35/1.54/1.7.3 billion yuan, a year-on-year increase of 15.91%/14.02%/12.65%. The PE corresponding to the closing price on August 30 is 35.22/30.89/27.42x, giving it a “buy” rating.
occurrences
The company published its 24-year semi-annual report. The first half of 2024 achieved operating income of 0.805 billion yuan, down 7.75% year on year; net profit to mother was 0.093 billion yuan, up 2.25% year on year; net profit after deducting non-return to mother was 0.091 billion yuan, up 1.78% year on year. Looking at a single quarter, Q2 achieved operating income of 0.403 billion yuan, -9.63%; net profit to mother of 0.055 billion yuan, +12.70% year-on-year; net profit after deducting non-attributable net profit of 0.055 billion yuan, or +10.77% year-on-year.
Investment advice: The results of cost reduction and efficiency improvement in the second quarter were evident. The 2Q24 company's gross margin was 39.05%, up 4.04pct year on year; the absolute value of expenses for the period remained flat year on year. In 2Q24, with revenue falling slightly by 9.63% year over year to 0.403 billion yuan, profit before tax increased 27.44% year over year to 0.068 billion yuan. Facing fluctuations in the publishing industry, on the one hand, the company collaborates with high-quality movies, TV series and animation IPs to create phenomenal book content, driving 1H24 animation book publishing revenue +30% year-on-year; on the other hand, expanding IP derivatives and themed bookstores, which is expected to contribute to new business growth. Looking forward to the future, digital intelligence strategies are expected to empower the business. The company released a new digital intelligence strategy in July. Based on its own resource advantages, it launched products such as a publishing knowledge base and an AI platform. Various products already have output capabilities.
We expect that in 2024-2026, the company will achieve net profit of 0.135/0.154/0.173 billion yuan, a year-on-year increase of 15.91%/14.02%/12.65%. The PE corresponding to the closing price on August 30 is 35.22/30.89/27.42x, giving it a “buy” rating.
Risk warning: risk of sales recovery in offline physical bookstores falling short of expectations, risk of increased channel discounts on short video platforms, risk of limited online shopping logistics, risk of macroeconomic fluctuations, risk of rising raw materials or logistics costs, risk of declining population, risk of education policy regulation, risk of changes in user consumption habits, risk of copyright protection falling short of expectations, risk of loss of copyright resources, risk of declining IP influence, risk of changes in popular aesthetic orientation, risk of new business expansion falling short of expectations, generative AI The risk that technology development falls short of expectations, and the risk that future cost reduction and efficiency will fall short of expectations.
