The Zhitong Finance App learned that Xinhua Wenxuan (00811) rose more than 4% in early trading. As of press release, it had risen 3.92% to HK$8.21, with a turnover of HK$136.693 million.

According to news, Xinhua Wenxuan recently announced results. In 2023, it achieved main revenue of 11.87 billion yuan, an increase of 8.6% year on year; net profit to mother of 1.58 billion yuan, up 13.1% year on year; net profit after deducting non-return to mother of 1.62 billion yuan, an increase of 11% year on year. In 2024Q1, we achieved revenue of 2.47 billion yuan, up 7% year on year; net profit to mother was 210 million, down 3.3% year on year.

Southwest Securities pointed out that according to the company's 2023 profit distribution, a cash dividend of 4 yuan (tax included) will be distributed to shareholders for every 10 shares, corresponding to the current Hong Kong stock price, and the dividend rate is about 5.2%. The company's business situation is steady, maintaining continuous dividends. The dividend rate for the year 2021-2024 is about 30%, and special dividends are paid at the end of 23 to give back to shareholders steadily.

The bank pointed out that the company is a leading organization in a local publishing group, and the publishing and distribution business is Hengqiang. The education information technology business is expected to open up a new growth curve and benefit from the Western Development Strategy. The company is expected to obtain income tax benefits and the company will maintain a stable high level of dividend rates.