JIAFAET(SZ:300559) Tianfeng Securities·2025-04-28 03:23Investment Rating - The report maintains a "Buy" rating for the company, with a target price yet to be specified [4]. Core Insights - The company is experiencing a revenue decline due to insufficient market demand and project delays, with a projected revenue of 4.3 billion in 2024, down 29% year-on-year [1]. - The company is adapting its market strategy by offering diverse models such as rental and operational services to meet varying customer needs [1]. - The introduction of new products in English testing, smart sports, and experimental exams is expected to enhance the company's product line and market reach [1]. - The company's "AI+" strategy has successfully been implemented in various educational scenarios, contributing to the development of national standards in sports education [2]. - The new AI solutions for English speaking and listening have been deployed in multiple provinces, significantly improving examination efficiency [2]. Financial Performance Summary - The company's revenue for 2023 was 604.37 million, with a projected decline to 429.92 million in 2024, followed by a slight recovery in subsequent years [8]. - The net profit for 2023 was 131.04 million, expected to drop to 36.39 million in 2024, with a gradual increase to 141.75 million by 2027 [8]. - Earnings per share (EPS) are projected to be 0.33 in 2023, decreasing to 0.09 in 2024, and then increasing to 0.35 by 2027 [8]. - The company’s price-to-earnings (P/E) ratio is expected to decrease from 30.21 in 2023 to 27.93 by 2027, indicating a potential improvement in valuation over time [8]. Market Position and Strategy - The company is transitioning from a single product sales model to a more integrated approach that includes product sales, solutions, operational services, and leasing [1]. - The customer base is expanding from government and business clients to include trials with individual consumers [1]. - The company is actively participating in national standard formulation, which is expected to enhance its influence in the education sector [2].