NETDRAGON(00777) 智通财经·2024-02-01 05:57Core Viewpoint - The rapid development of AI continues to disrupt the market, with NetDragon (00777) emphasizing its dual-driven strategy in gaming and education, particularly focusing on its education business following the successful spin-off and listing of its overseas education segment as "Mynd.ai" [1][4] Company Strategy - NetDragon's education business accounts for over 50% of its revenue, with the recent spin-off allowing for a focused approach on AI in education, aiming to establish Mynd.ai as a global SaaS company [1][4] - The management highlighted three reasons for the spin-off: better understanding of the company's value by local investors, potential for stock price and market value enhancement, and the release of company potential to pursue its vision [1][3] Market Position - NetDragon's education segment has shown a compound annual growth rate (CAGR) of 14.01% from 2018 to 2022, with its interactive flat panel (IFPD) products leading the global market with over 20% market share [1][2] - The company has established a competitive advantage through an integrated hardware-software-content model, targeting schools with its products [2][3] Financial Impact - The spin-off of Mynd.ai is expected to improve cash flow significantly, allowing for independent financing and reducing reliance on the parent company for funding [3][4] - The education business is projected to accelerate growth through AI+education SaaS services, enhancing profitability and optimizing the company's overall financial performance [4][5] Industry Outlook - The global education information technology market is expanding, with a market size exceeding 2.5 trillion yuan in 2020, and AI is anticipated to further upgrade educational products [2][3] - NetDragon's early investment in AI technology positions it well to capitalize on the evolving educational landscape, with plans to integrate AI into its existing product offerings [2][3] Valuation Insights - The dual strategy of gaming and education remains unchanged, with the gaming segment continuing to contribute significantly to profits and cash flow [4][5] - Analysts express optimism regarding the spin-off, suggesting it will enhance the company's focus on AI+education and improve overall valuation, with target prices indicating substantial upside potential [4][5]