Introduction to this report:

The company's business in various sectors progressed steadily in the first half of the year, and autonomous IP exhibitions continued to grow. At the same time, we will firmly promote the two major strategies of “Exhibition China” and “Digital Exhibition”, actively explore international development paths, and open up space for development.

Key points of investment:

Considering that the company's other recurring profit and non-operating profit and loss fluctuated greatly, the 2024/25/26 EPS was lowered to 0.30/0.32/ 0.34 yuan (previous value was 0.42/0.44/0.46 yuan). Considering the continuous growth of independent IP exhibitions, 2024 was given a slightly higher than 24.7xPE of the industry, and the target price was lowered to 7.45 yuan (previous value 8.39 yuan) to maintain the increase in wealth.

Performance summary: Performance fell short of expectations, 24H1 operating income of 0.59 billion/ +4.36%, net profit to mother 0.082 billion/ -57.43%, net profit after deducting 0.093 billion/ -15.47%, mainly due to a decrease in other recurring profit and loss and non-operating profit and loss compared to the same period in 2023. In terms of other recurring profit and loss, dividend income from financial assets obtained in the current period decreased year-on-year. In terms of non-operating profit and loss, the current period was greatly affected by fluctuations in the secondary market. 24Q2 operating income 0.413 billion/ -19.23%, net profit attributable to mother 0.087 billion/ -56.69%, net profit not attributable to mother 0.097 billion/ -33.26%.

Deeply involved in the main business in various sectors, the autonomous IP exhibition continues to grow. The company's business in all sections of exhibition organization, event operation, venue operation, and exhibition services is progressing steadily. In the first half of the year, the company hosted 12 exhibitions and held 4 road running and water events. A total of 43 events were held at the Shanghai World Expo Exhibition Hall. The Convention and Exhibition Group withheld non-net profit of 83.0217 million/ + 33.51%. In addition, the number of autonomous IP exhibition projects has increased significantly. The Guangzhou Printing Exhibition had the highest number of overseas visitors ever. The grocery fair has grown into the largest project logistics exhibition in Asia, and its expo has also increased across the board.

It anchors the two major strategies of “Exhibition China” and “Digital Exhibition”, while actively exploring internationalization strategies. Focus on the “Exhibition China” strategy, endogenous development and epitaxial mergers and acquisitions of two-wheel drives. The company has successively invested in mergers and acquisitions of the CMM Electronics Manufacturing Automation & Resources Exhibition, and the General Goods Fair. Looking forward to the future, well-funded and high-quality projects can be discovered through the World Expo Hall, and the company will acquire upstream and downstream in an orderly manner. The company accelerates digital transformation with four key directions: digital strategic blueprint, digital business innovation, data asset accumulation and application, and unified technology management. In addition, the company is exploring international exhibition strategies in line with the trend of going overseas, and projects such as WAIC, miscellaneous goods fair, and wide printing exhibition are all actively going overseas.

Risk warning: Exhibitors are less willing to pay, competition intensifies, and overseas trips fall short of expectations;