Guotai Junan Securities: Initiate coverage on Maoyan Entertainment (01896.HK) with a target price of 9.43 Hong Kong dollars and a "Buy" rating.

According to the Securities Times app, Guotai Junan released a research report stating that Maoyan Entertainment (01896.HK) had a total revenue of 2.47 billion yuan in the first half of this year (a 13.9% increase year-on-year); gross profit margin of 37.9% (a 15.4 percentage point decrease year-on-year), mainly due to the increase in content production and promotion, as well as internet infrastructure costs. The profit for the period was 180 million yuan (a 37.3% decrease year-on-year). The bank predicts that Maoyan Entertainment's earnings per share for 2025 to 2027 will be 0.25 yuan, 0.42 yuan, and 0.54 yuan respectively, using the average of the price-to-earnings ratio and price-to-sales ratio (PS) valuation method, corresponding to a target price of 9.43 Hong Kong dollars in 2025 for the company. This is the first time it has been covered, and a "hold" rating is given.