Introduction to this report:
With the accelerated implementation of education informatization policies, the upgrading of technical requirements for rail transit systems, and the release of demand for vocational colleges and rail transit systems, combined with the huge market potential of emergency safety services, the company's performance is expected to increase rapidly in the future.
Key points of investment:
The first coverage gave an “increase in holdings” rating, with a target price of 28.16 yuan. The company's revenue for 2023-2025 is estimated to be 401, 567, and 816 million yuan respectively, net profit of the mother is 0.85, 117 and 165 million yuan respectively, and EPS is 0.77, 1.05 and 1.49 yuan respectively. As a leading virtual simulation training solution service provider in China, the company gave a target price of 28.16 yuan based on PE and PS valuations, first coverage, and a “increase in holdings” rating.
China's leading virtual simulation training solution service provider. Relying on computer simulation and virtual reality technology, the company focuses on providing comprehensive solutions for systematic simulation training covering railway transportation and urban rail transit for schools that have established rail transport-related majors, local railway administrations and their subordinate units, subway companies, etc. Furthermore, the company has expanded horizontally and has now formed four major business modules: rail transit, emergency safety, navigation ships, and general aviation.
With the support of favorable policies for informatization in vocational education, demand highlights the broad market space. The company is deeply involved in the vocational college market. In the context of medium- and long-term loans for education information+key development of vocational colleges and universities, demand for vocational education, especially practical training systems, is strong. Coupled with the further release of the demand for informatization upgrades in vocational colleges and universities that were previously suppressed, practical training in vocational colleges and universities and related informatization will maintain a dominant growth position.
The rail transit industry as a whole has high-quality catalysis, and the emergency safety market potential is huge. The China Railway Administration emphasized accountability mechanisms, the rail transit simulation training system became the solution, and new market space opened up. Emergency awareness is gradually increasing, and the promotion of standardized emergency drill centers is imminent. The company cooperates extensively with public security and fire departments, enterprises, and colleges, and emergency safety business performance is expected to improve.
Risk warning. The implementation of the policy fell short of expectations; the progress of project implementation fell short of expectations.