JIAFAET(SZ:300559) Changjiang Securities·2024-05-06 01:32Investment Rating - The report maintains a "Buy" rating for the company [19][37]. Core Insights - The company achieved significant growth in 2023, with total revenue reaching 604 million yuan, a year-on-year increase of 46.47%. The net profit attributable to shareholders was 131 million yuan, up 90.05% year-on-year, and the net profit excluding non-recurring items was 127 million yuan, reflecting an 81.15% increase. Operating cash flow also saw a substantial rise, reaching 180 million yuan, a 72.35% increase year-on-year [3][5][19]. - The company is a leader in standardized examination point construction, focusing on smart examination and smart education. The integration of AI is expected to drive a new growth curve for the company [3][19]. - The standardized examination business has returned to a high growth cycle, with revenue from educational examination standardized solutions reaching 421 million yuan, a 69.58% increase year-on-year. The introduction of security gates has contributed to this growth, particularly in response to new regulations aimed at preventing cheating during exams [5][19]. Financial Performance Summary - In 2023, the company reported total revenue of 604 million yuan, with projections for 2024, 2025, and 2026 to reach 795 million yuan, 1.074 billion yuan, and 1.368 billion yuan, respectively. The net profit attributable to shareholders is expected to grow to 180 million yuan in 2024, 244 million yuan in 2025, and 314 million yuan in 2026 [9][19]. - The company's gross profit margin for 2023 was 52%, with expectations to maintain a similar margin in the coming years [9]. - The report highlights a significant increase in R&D expenses, which are projected to rise from 45 million yuan in 2023 to 123 million yuan by 2026, indicating a strong commitment to innovation and product development [9]. Business Development - The company has launched new AI-driven educational solutions, including "Physics, Chemistry, and Biology Experiment AI Solutions," "Sports Education AI Solutions," and "English Computer-Based Testing AI Solutions," which contributed to a 19.29% year-on-year revenue increase in the smart education segment, totaling 117 million yuan in 2023 [32]. - The company is leveraging AI technology to enhance its product offerings and expand into new market segments, positioning itself for future growth [32].