Beijing Hanyi Innovation Technology (SZ:301270) Guoyuan Securities·2025-05-28 06:12Investment Rating - The report initiates coverage with a rating of "Buy" for the company [4][57]. Core Insights - The company is a leading player in the font library industry, continuously expanding its font application scenarios and aiming to become a diversified cultural technology group [2][11]. - The company has developed over 1,700 B-end fonts and more than 3,600 font products, maintaining a stable revenue with a gross margin around 80% from 2022 to 2024 [1][4]. - The "Ziyou" platform has introduced a new subscription-based licensing model, achieving over 13.2 million registered users and 370,000 daily active users by the end of 2024, indicating significant growth potential [2][32]. - Strategic investment from Founder Holdings enhances the company's access to industry resources and collaboration opportunities, particularly in AI and font technology [3][46]. Summary by Sections Company Overview - Founded in 1993, the company specializes in font design, font library development, and Chinese information technology research, holding core intellectual property rights [11][12]. - The company has a strong design team and has created numerous custom fonts for major brands like Huawei and Xiaomi [11][12]. Market Potential - The font library industry is projected to grow significantly, with the market size expected to exceed 1.5 billion by 2026, driven by digital economy expansion and improved copyright markets [17][20]. Financial Performance - In 2024, the company reported a revenue of 190.72 million, a decrease of 12.17% year-on-year, with a net profit of 8.81 million, down 78.74% [23][53]. - The core business segments include font software licensing (68.97% of revenue) and internet platform licensing (23.88% of revenue), both showing strong gross margins [27][34]. Strategic Initiatives - The company is actively exploring AI applications in font design and recognition, enhancing its competitive edge in the industry [40][47]. - The partnership with Founder Holdings is expected to accelerate development in the font library sector and improve profitability [46][47]. Profit Forecast and Investment Advice - The company forecasts revenues of 238.21 million, 284.88 million, and 325.70 million for 2025, 2026, and 2027 respectively, with corresponding net profits of 50 million, 63 million, and 72 million [4][57]. - The report emphasizes the company's potential for sustained growth and recommends a "Buy" rating based on its market position and future prospects [4][57].