Investment Rating - The report maintains a "Buy" rating for the company [3][11] Core Views - The company is expected to achieve revenue of 4.96 billion, 6.09 billion, and 7.23 billion RMB for the years 2025, 2026, and 2027 respectively, with corresponding net profits of 0.28 billion, 0.47 billion, and 0.64 billion RMB [3][8] - The current price corresponds to a PE valuation of approximately 190.2, 116.0, and 85.0 times for the years 2025, 2026, and 2027 respectively [3][8] Revenue and Profit Forecast - The company's revenue for 2023 is projected at 4.10 billion RMB, with a growth rate of -6.76% compared to the previous year [8] - The net profit for 2023 is estimated at 0.10 billion RMB, with a significant increase of 321.88% expected in 2024 [8] - The diluted earnings per share are forecasted to be 0.068 RMB in 2023, increasing to 0.276 RMB by 2027 [8] Financial Performance - In the first half of 2025, the company reported a revenue of 1.18 billion RMB, a year-over-year decrease of 18.41% [9] - The gross margin for the first half of 2025 was 47.4%, reflecting a slight decline of 1.57 percentage points year-over-year [9] - The company’s expenses in R&D, sales, and management have increased, indicating a focus on expanding its sales network in the smart education sector [9] Business Segments - The smart education segment saw a revenue decline of 28.13% in the first half of 2025, while the smart examination segment grew by 32.06% [9] - The smart rail segment experienced a robust growth of 71.03% in the same period, indicating strong demand in that area [9] Valuation Metrics - The report provides a detailed breakdown of the company's valuation metrics, including a projected P/E ratio of 190.23 for 2025, which reflects the company's growth expectations [8][10] - The return on equity (ROE) is expected to improve from 0.68% in 2023 to 2.75% by 2027, indicating better profitability over time [8][10]