University Education grants reserved restricted shares
In view of the fulfillment of the conditions for the 2023 Restricted Stock Incentive Plan, the company awarded a total of 1.10 million restricted shares to 241 eligible incentive recipients on June 19, 2024. The grant price was 14.05 yuan/share. The source of the shares was the company's targeted issuance of additional A shares.
The lifting of sales restrictions is divided into two phases, with a ratio of 50% for each period. The corresponding assessment years are 2024 and 25. Among them, the first period of lifting the sales restriction requires a net profit of not less than 80 million in 2024 and 2025, and the second period for lifting the sales restrictions requires a cumulative net profit of not less than 20,000 million in 2024 and 2025.
The closing price of the company's stock on the grant date was 63.04 yuan/share, and the estimated confirmation incentive cost was 53.889 million. The company's amortization schedule is based on the cancellation of sales restrictions in the incentive plan, which is expected to have an impact on operating performance of 20.84 million, 26.945 million, and 6.7361 million in 2024, 25, and 26, respectively.
Xueyang Modern Service Vocational College is strategically cooperating with Yueyang Modern Service Vocational College. After the completion of the site of the first year of September this year, Xueyang Modern Service Vocational College will participate in the cooperative operation of Yueyang Modern Service Vocational College to jointly carry out high-quality vocational education practices focusing on the fields of “specialization and innovation” and “scarce talents”.
At the same time, Yueyang Modern Service Vocational College has also signed school-enterprise cooperation agreements with JD, Ziguang, Chery, and Yuansong. The various parties will form a joint effort to establish a new innovation-driven mechanism for industry-education integration and school-enterprise cooperation to cultivate talents urgently needed by the market to drive industrial development, and further promote the organic connection of the education chain and talent chain with the industrial chain and innovation chain.
The Chenglingji Xingang Campus of Yueyang Modern Service Vocational College is expected to be put into use in September this year. The plan is to enroll 4,500 students from all over the country in the first year, and the fall of 2025 can reach 10,000 students.
The university has already explored a characteristic vocational education path. Through models such as joint operation of schools, school-enterprise cooperation, investment and joint professional construction, it has established a comprehensive training system for highly qualified technical skilled talents integrating centralized vocational education, higher vocational education, integration of industry and education, and vocational skills training.
Xueda Education Group has completed the acquisition and management of nearly 10 secondary vocational schools, and has reached cooperation with many higher vocational colleges and industry enterprises across the country, focusing on the two major directions of “specialization and innovation” and “scarce talents”. The project covers various aspects such as the joint construction of industrial colleges, second-level colleges, internship training bases, maternity and education integration bases, and industry-education integrated talent training, and industry-education integrated school-enterprise cooperation.
Maintain profit forecasts and maintain “buy” ratings
As the company's incentive plan progresses steadily, we believe that it may cause incentive costs and stock price fluctuations in the short term, and in the long run, it will significantly increase employee motivation and company operating efficiency, thereby enhancing the company's intrinsic value. At the same time, the operation of vocational education is expected to open up new growth space. We expect net profit from 24-26 to mother of 2.5/3.40 billion yuan, EPS of 2.08/2.70/3.44 yuan/share, respectively, and corresponding PE of 32/24/19X, respectively.
Risk warning: policy risk; management risk; new business risk; risk of rising operating costs, etc.