The company released the 2024Q3 quarterly report

The company's 24Q3 revenue was 0.62 billion; net profit due to mother was 0.008 billion, net profit not returned to mother was 0.004 billion; 24Q1-3's net profit was 2.1 billion, net profit due to mother was 0.13 billion, not 0.1 billion yuan after deduction.

24Q1-3's gross profit margin was 58%, up 41.2pct; net profit margin was 6%.

Growth rate recorded in 2025 national examination

In 2025, a total of 3.416 million people passed the employers' qualification examination in the civil service examination (that is, the national examination). The ratio between the number of people who passed the qualification examination and the number of employment plans was about 86:1 (the ratio of the number of people who passed the qualification examination in 2024 to the number of employment plans was about 77:1).

This year's national examination report ratio has expanded, compounded by the employment background of the past two years. We expect it to drive up the number of participants, training time, training unit price, etc.; the recruitment market is developing in a steady, healthy and orderly manner.

Give full play to the advantages of strong teaching and teaching ability

In terms of teaching, research and teaching, ① has a team of professional teachers. Teachers are experienced in teaching and can provide students with accurate guidance in line with the latest policy developments. ② Formulate strict standards for teacher development. Early training teachers who pass the interview are required to go through strict training procedures such as “pre-training for each branch - pre-entry study tasks - online theoretical training - offline practical training - mid-term assessment - final assessment - departure”. ③ We have a strict teaching and research system. Continuously track exam trends, adjust teaching and research priorities in a timely manner, conduct in-depth and accurate analysis of exam conditions in different regions, and develop teaching materials such as targeted simulation questions and problem solving techniques to help students prepare for the exam efficiently. ④ There is a strict feedback mechanism. The company regularly collects feedback on teaching and research, and continuously optimizes teaching and research content through data analysis to form a virtuous cycle; ⑤ The company has a perfect practical simulation and evaluation mechanism. ⑥ Provide a full range of learning support.

In terms of products, innovation in product strategies has led to the improvement of the advanced position of the company's products in the industry.

Product strategies are formulated on the basis of comprehensive insight, and unified plans are formulated in the four major sectors of teaching and research, enrollment, marketing, and delivery to form a coordination and linkage working mechanism for each business line to systematically improve product strength and ensure product quality.

Adjust profit forecasts and lower the “gain” rating

Based on the 24Q1-3 performance, the current consumption environment, issues such as uncertainty about students' intention to purchase courses and participate in training; we adjusted the profit forecast. The company's EPS for 24-26 is 1.5 yuan, 1.9 yuan, and 2.5 yuan (the original value was 3 yuan, 3.6 yuan, and 4.4 yuan), respectively, and PE is 50X, 39X, and 30X, respectively.

Risk warning: Market operation risks, sales falling short of expectations, loss of core executives.