Investment Rating - The report maintains a "Buy" rating for the company [7][5]. Core Insights - The company's Q3 revenue decreased to 2.153 billion RMB, down 12.94% year-over-year and 37.79% quarter-over-quarter, with a net profit of 153 million RMB, down 16.33% year-over-year and 76.35% quarter-over-quarter [1]. - The decline in revenue is attributed to a reduction in the material trading segment and adjustments in the general book business, along with the impact of settlement rhythms on the distribution side [1]. - The report highlights that the company's publishing business has a strong brand advantage, with a market share of 5.25% in the national book retail market, ranking second, and a 6.07% share in the new book retail market, ranking first [3]. Financial Performance - The gross margin for Q3 was 46.96%, an increase of 4.13 percentage points year-over-year [2]. - The total operating revenue for the first three quarters was 8.488 billion RMB, down 16.56% year-over-year, while the net profit attributable to the parent company was 1.170 billion RMB, up 22.32% year-over-year [1]. - The report projects a decrease in net profit forecasts for 2025-2027, with estimates of 1.458 billion RMB, 1.445 billion RMB, and 1.426 billion RMB respectively, reflecting a downward adjustment of 14.57%, 18.22%, and 19.32% [5]. Business Strategy - The company is leveraging artificial intelligence to build a comprehensive educational product matrix covering all scenarios of "teaching, learning, assessment, and testing" [4]. - The report notes the establishment of a new media platform at various administrative levels, enhancing the company's influence in local news [3]. Valuation - The target price for the company is set at 13.31 RMB, corresponding to a 16.4X PE for 2025, reflecting the company's status as a leading publisher with brand and channel advantages [5].