KINGSWOOD EDUCATION(SZ:300192) KAIYUAN SECURITIES·2024-04-28 04:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company reported a revenue of 188 million yuan in Q1 2024, representing an increase of 83.6% year-on-year, with a net profit margin of 17.96% [2] - The company announced a cash dividend of 2.5%, reflecting a commitment to returning value to shareholders [2] - The forecast for net profit for 2024-2026 is adjusted to 168 million, 201 million, and 235 million yuan respectively, with year-on-year growth rates of 21.7%, 19.7%, and 17.0% [2] - The company is expected to benefit from the steady growth of its vocational education business and improvements in its ink business [2] Financial Performance Summary - In 2023, the company's revenue from vocational schools and repeat students was 353 million yuan, up 23.74% year-on-year, while the ink business generated 414 million yuan, up 7.49% year-on-year [2] - The overall gross margin for the company in 2023 was 33.26%, an increase of 2.39 percentage points year-on-year [4] - The net profit for 2023 was approximately 95.49 million yuan, with a contribution of 7.36 million yuan from the investment in AI chip company Zhonghao Xinying [2][4] Business Segments - The education business has a gross margin of 48.35%, while the ink business has improved its gross margin to 20.33%, an increase of 10.33 percentage points year-on-year [2] - The company is focusing on expanding its vocational education offerings, which are seen as having high scarcity and significant growth potential [2] AI Chip Investment - The company holds a 7.8% stake in Zhonghao Xinying, which achieved a revenue of 485 million yuan in 2023, significantly exceeding its performance targets [2] - Zhonghao Xinying specializes in AI training chips (TPU), which are expected to drive value re-evaluation for the company [2]