We Publish a Deep Dive on [Chuanzhi Education]: The First AI Talent Training Stock with Significant Room for Bottom Reversal

English summary

As a leading AI talent training company in China, amid sufficient industry supply clearance and continuous optimization of the competitive landscape, the company is expected to fully benefit from the era dividends brought by the accelerated development of the AI industry, leveraging its comprehensive advantages in curriculum development, teaching delivery, and more. Investment Advice: Benefiting from the high popularity of AI training, industry supply clearance, and optimized competition, we believe Chuanzhi Education can achieve earnings recovery through strong product strength, channels, and reputation. We forecast net profit attributable to shareholders of RMB 0.58/1.01/1.94 billion for 2026/2027/2028, corresponding to EPS of RMB 0.15/0.25/0.48. We assign a higher 60x PE than the industry, with a target price of RMB 9.00, and an 'Overweight' rating. The expansion of AI demand and industry supply clearance resonate, and the company is expected to see an operational inflection point. In H1 2026, new AI job positions increased by 21.08% YoY; the structural mismatch between talent capabilities and job requirements continues to generate training demand.…