盈利能力向好，智慧教育产品持续突破

Investment Rating - The report maintains an "Overweight" rating for Century Tianhong, with current valuations at 84.6x, 71.1x, and 59.9x for 2024-2026 respectively [12][61] Core Views - Century Tianhong's 2023 revenue reached RMB 507 million, a YoY increase of 17.2%, with net profit attributable to shareholders of RMB 42 million, up 18.9% YoY [1][64] - The company's gross margin improved significantly to 37.2% in 2023, up 4.1 percentage points YoY, driven by enhanced R&D capabilities and product quality [33][70] - Century Tianhong's smart education products continue to break through, with the "Xiaohong Teaching Assistant 4.0" version being upgraded and the "Bishen Composition" APP accumulating over 18 million users [21] Financial Performance Revenue and Profit - 2023Q4 revenue was RMB 139 million, up 3.3% YoY, with net profit attributable to shareholders of RMB 11 million, a 33.4% YoY increase [1] - Non-GAAP net profit attributable to shareholders in 2023 was RMB 39 million, up 27.2% YoY [1] Cost Structure - 2023 sales, management, and R&D expense ratios were 14.6%, 10.6%, and 1.0% respectively, with sales expenses increasing due to marketing and salary expenditures [2][21] - 2023Q4 sales, management, and R&D expense ratios were 18.2%, 11.0%, and 1.2% respectively, showing significant increases compared to the same period last year [2] Profitability - 2023 gross margin for educational materials was 35.0%, up 3.6 percentage points YoY, while consulting services gross margin reached 74.3%, up 4.7 percentage points YoY [16] - 2023Q4 gross margin was 42.2%, up 10.4 percentage points YoY, with a net margin of 8.0%, up 2.3 percentage points YoY [33] Business Development - The company published 2,818 books in 2023, totaling approximately 1.1 billion words, and upgraded the 2024 edition of the "Blue Book of College Entrance Examination" [59] - Century Tianhong's digital education solutions have been piloted and promoted in provinces such as Shandong and Guangdong, offering a comprehensive package of "technology platform + content resources + teaching research services" [21] Industry Outlook - The growth rate of the national birth rate and the number of K12 students is lower than expected, which may impact the demand for educational materials [8] - The rapid growth of short video and live e-commerce in retail channels may further intensify competition in the book industry, potentially squeezing profit margins [62]