The company released a three-quarter report

The company's 24Q3 revenue of 0.4 billion increased by 31%, while the net income of 0.036 billion increased 70%; 24Q1-3 revenue of 0.97 billion increased 35%, and the net income of 0.02 billion increased by 122%.

24Q1-3's gross profit margin of 44.1% decreased by 1.7 pcts; net profit margin of 2% increased by about 14 pcts.

Rich educational resources and product categories

The company has a solid foundation for developing various education service businesses, building a rich education service product matrix to provide C-end users with a complete educational service product system covering all age groups from young children to adults to meet the diverse learning needs of students of different types and ages; providing high-quality teaching courses, teaching talents and services, and overall operation services to B-side schools, institutions, etc., to empower B-side schools and institutions to improve the quality of teaching services.

The management of teaching centers is becoming more mature

The company promotes the layout of offline outlets in an integrated manner. It has a network of learning centers throughout the core area of Shanghai. It continues to expand the campus according to market demand, improve the offline network, and meet the needs of more users. At the same time, the company further promotes the integration of campus products and environmental innovation upgrades to provide students with a more diverse and high-quality learning experience and teaching services, and effectively guarantee the quality of teaching.

Iterative upgrading and innovation capabilities revealed

Over the course of 40 years of development, the company has continued to follow up market changes and upgrade business and product systems to meet changing customer needs. The company's innovative thinking has always penetrated various aspects such as business model innovation, management innovation, curriculum innovation, teaching innovation, and organizational innovation. In particular, in recent years, the company has accelerated innovation and development of non-disciplinary products, continued to iteratively lay out OMO products, and continued to pay attention to the application and development of artificial intelligence technology in the field of education. The company's accumulated product development capabilities, management ability, innovation ability and adaptability are continuously forging the company's core competitiveness for continuous and stable operation.

Adjust profit forecasts to maintain “buy” ratings

Generally, education and training institutions have a strong scale effect, and with revenue volume growth, we expect subsequent profitability to be gradually unleashed; based on 24Q1-3 performance, we adjusted profit forecasts. We expect EPS to be 0.12, 0.58, and 0.78 yuan (original values of 0.23, 0.59, and 0.76 yuan) for 24-26, respectively; PE is 124X, 25X, and 19X, respectively.

Risk warning: Increased competition risk in the industry; enrollment falls short of expectations; risk of losing key talent.