JIAFAET(SZ:300559) Tianfeng Securities·2024-03-28 16:00Investment Rating - The report maintains a "Buy" rating for the company [2][8]. Core Views - The company's smart examination business is experiencing increased demand due to product variety and upgrades, as well as expanded application scenarios. The company has strategically positioned itself in the smart education sector, particularly in smart sports and English listening and speaking, and is now entering a phase of rapid market growth. The introduction of AI-enabled products is expected to enhance revenue potential in the consumer segment [2][8]. - The company reported a significant revenue increase of 171% year-on-year in Q4 2023, with a net profit increase of 174%. For the full year 2023, revenue reached 604.37 million yuan, a 46.5% increase, and net profit was 131.04 million yuan, up 90.1% [8]. Financial Data and Valuation - Revenue projections for 2024, 2025, and 2026 are estimated at 879.18 million yuan, 1,152.87 million yuan, and 1,547.39 million yuan, respectively, with growth rates of 45.47%, 31.13%, and 34.22% [2][3]. - The company's net profit for the same years is projected to be 214.14 million yuan, 281.26 million yuan, and 366.56 million yuan, reflecting growth rates of 63.42%, 31.35%, and 30.33% [2][3]. - Earnings per share (EPS) are expected to be 0.54 yuan, 0.70 yuan, and 0.92 yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (P/E) ratios of 24, 18, and 14 [2][3]. - The company reported a gross margin of 51.8% in 2023, a decrease of 2.1 percentage points year-on-year, while the net profit margin increased by 7.5 percentage points to 21.4% [8]. Business Developments - The company has launched several new AI solutions, including the "Smart Security Gate Solution" and "AI Solutions for Physics, Chemistry, and Biology Experiments," which have received positive market feedback [8]. - The report highlights the company's proactive approach in the smart education sector, focusing on tailored products that meet market needs, particularly in smart sports and English language training [8].