Soochow Securities·2026-04-01 08:11Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported a revenue of 4.48 billion yuan for 2025, a decrease of 26% year-on-year, with a net profit attributable to shareholders of 150 million yuan, down 51% year-on-year. The decline in profit was primarily due to cryptocurrency impairment losses and one-time costs related to employee optimization [7] - The gaming segment performed better than expected, with revenue of 3.28 billion yuan, a 17% decline year-on-year. Cost optimization led to a smaller decline in operating profit, which reached 900 million yuan, down only 3% year-on-year. The operating profit margin improved by 3.9 percentage points to 27.4% [7] - The education segment faced short-term pressure, with revenue of 1.2 billion yuan, down 43% year-on-year, and an operating loss of 360 million yuan, which widened from a loss of 300 million yuan in the previous year. The decline was attributed to increased uncertainty in budget allocation from overseas clients [7] - The company is focusing on AI-driven cost reduction and efficiency improvements in its gaming business, while the education business is expected to benefit from a new round of equipment replacement cycles in the medium term [7] Financial Summary - The company’s total revenue is projected to be 4.48 billion yuan in 2025, with a net profit of 150 million yuan. The earnings per share (EPS) is expected to be 0.28 yuan, with a price-to-earnings (P/E) ratio of 28.58 [1][8] - For 2026, the net profit is forecasted to increase to 477.89 million yuan, with an EPS of 0.90 yuan and a P/E ratio of 9.03. By 2028, the net profit is expected to reach 742.16 million yuan, with an EPS of 1.40 yuan and a P/E ratio of 5.82 [1][8] - The company’s gross margin improved to 70.3% in 2025, up 5.1 percentage points year-on-year, while overall operating expenses decreased by 22% [7]