Astro-century(SZ:300654) Southwest Securities·2024-03-28 16:00Investment Rating - The report maintains a "Hold" rating for the company, indicating that it is expected to perform in line with the market over the next six months [10][12]. Core Views - The company is projected to achieve revenue growth of 16% in 2024, followed by 6.9% in 2025 and 6.4% in 2026, with net profit growth rates of 33.5%, 11.7%, and 8.1% respectively [2][12]. - The integration of research and marketing activities is expected to enhance market penetration and drive sales growth [11][24]. Financial Summary - The company reported a revenue of 510 million yuan in 2023, representing a year-on-year increase of 17.2%, with a net profit of 42.34 million yuan, up 18.9% [10][12]. - Forecasted revenues for 2024, 2025, and 2026 are 588.4 million yuan, 629.3 million yuan, and 669.5 million yuan respectively, with corresponding net profits of 56.53 million yuan, 63.15 million yuan, and 68.23 million yuan [2][13]. - The projected PE ratios for 2024, 2025, and 2026 are 84, 75, and 69 respectively [12][13]. Business Segments - The company anticipates a 15% growth in the issuance of educational supplementary books in 2024, with a gradual decline to 5% in subsequent years, while maintaining stable pricing [18][30]. - The gross margin for educational supplementary books is expected to improve slightly, reaching 35.5% in 2024 and 36.5% by 2026 [30]. Market Position - The company is positioned as a leading player in the private publishing sector, with a focus on AI in education, which is expected to further open growth opportunities [12][25]. - The integration of AI technology in products like "Xiao Hong Assistant" is showing initial success, with significant user engagement and content generation capabilities [25][26].