JIAFAET(300559) 长江证券·2024-09-23 02:39Investment Rating - The report maintains a "Buy" rating for Jiafa Education (300559 SZ) [5] Core Views - Short-term performance pressure due to market and macroeconomic factors, with H1 2024 revenue down 14 66% YoY to RMB 260 million and net profit down 51 56% YoY to RMB 43 million [1][3] - AI-powered smart education is expected to become a new growth driver, with the company transitioning from a single product sales model to a diversified model integrating sales, solutions, operations, and leasing services [4] - The company is a leader in standardized examination site construction, focusing on smart examination and smart education businesses [1][3] Financial Performance - H1 2024 revenue decreased by 14 66% YoY to RMB 260 million, with net profit down 51 56% YoY to RMB 43 million [1][3] - Q2 2024 revenue declined 38 33% YoY to RMB 146 million, with net profit down 57 26% YoY to RMB 36 million [3] - Gross margin improved by 1 81 percentage points to 54 89% in H1 2024 [3] - Operating cash flow decreased by 53 36% YoY to RMB 43 million in H1 2024 [1][3] Business Segments - Smart examination business revenue decreased by 24 39% YoY to RMB 174 million in H1 2024, with gross margin increasing by 2 88 percentage points to 60 18% [4] - Smart education business revenue increased by 14 35% YoY to RMB 57 million in H1 2024, with gross margin up 1 05 percentage points to 43 87% [4] - The company is expanding into C-end markets with AI-powered products, including an AI English learning assistant expected to launch in H2 2024 [4] Future Outlook - Revenue is projected to grow to RMB 671 million in 2024, RMB 861 million in 2025, and RMB 1 077 billion in 2026 [4] - Net profit is expected to reach RMB 140 million in 2024, RMB 185 million in 2025, and RMB 231 million in 2026 [4] - The company's PE ratio is forecasted to be 23x in 2024, 17x in 2025, and 14x in 2026 [4]