核心业务教育服务及托管业务增长43%/53%，教育服务中包含游学高增。1）公司综合教育服务/餐厅运营/销售产品/管理及特许经营费收入分别为17.45/9.19/5.97/0.60 亿元，同比增长42.7%/65.5%/23.2%/52.9%。其中综合教育服务和提升主要由于高中入读人数增长及游学业务爆发式增长。管理及特许经营费收入增加主要是由于FY2024 新增3 所托管学校。销售产品收入增长主要由于在山东、甘肃、广西及云南省的加密供应链渠道布局带来的收益增加。2)从教学效果来看，2024 年高考考生中，约90%超过中国大学本科分数录取线，同比提升6.5PCT，约55%超过中国一本大学本科录取线，同比提升4.7PCT，有272 人收到世界排名前50 的大学（其中9人升入QS 前10），同比增加114%。An overview of all things _ s description um mary]
FY2024 Group's total revenue/ annual profit/ adjusted net profit was 3.321/0.556/0.577 billion yuan respectively, up 44.2%/66.3%/56.4% year-on-year, and the performance was in line with market expectations. The total amount of adjustments was $0.011 billion ($0.041 billion in share return award scheme and share option plan expenses, $0.009 billion in foreign exchange losses, $0.011 billion in depreciation and amortization due to appreciation, profit from joint ventures — $-0.014 billion, and revenue from acquisition of subsidiaries — $-0.026 billion). A final dividend of 4.07 points was paid, and the interim dividend was 4.17 points. The dividend rate was maintained at 30%, corresponding to a dividend rate of 2.1%.
Analytical judgment:
The core business education services and hosting business grew by 43%/53%, and education services included a high increase in study tours. 1) The company's revenue from comprehensive education services/restaurant operation/sales products/management and franchise fees was 17.45/0.919/0.597/0.06 billion yuan respectively, up 42.7%/65.5%/23.2%/52.9% year-on-year. Among them, comprehensive education services and upgrades are mainly due to the increase in the number of high school enrollees and the explosive growth of the study tour business. The increase in management and franchise fee revenue is mainly due to the addition of 3 new trusteeship schools in FY2024. The increase in revenue from sales products is mainly due to increased revenue from the distribution of encrypted supply chain channels in Shandong, Gansu, Guangxi and Yunnan provinces. 2) Judging from the teaching results, of the 2024 college entrance examination candidates, about 90% surpassed the Chinese undergraduate score admission line, an increase of 6.5 PCT over the previous year, and about 55% surpassed the undergraduate admission line of a Chinese university, an increase of 4.7 PCT over the previous year. 272 received the top 50 universities in the world (9 of them were promoted to the top 10 QS), an increase of 114% over the previous year.
The increase in net profit margin higher than gross margin was mainly due to a decrease in administrative expenses and an increase in the share of other income. FY2024 gross margin was 33.8%, down 0.1 PCT year on year. Our analysis was mainly due to the increase in the share of sales product business with relatively low gross margin; net interest rate/adjusted net interest rate was 16.7%/17.4%, up 2.2/1.4PCT year on year: (1) sales expenses/revenue increased 0.6 PCT to 2.1%; (2) administrative expenses/revenue decreased by 2.7 PCT to 7.8%. Our analysis was mainly due to a decrease in employee costs and office administrative expenses; 3) Other revenue/revenue increased 0.5 PCT to 1.5% ; 4) The share of other expenses increased by 0.1 PCT to 0.8%; 5) Income tax/revenue increased by 0.8 PCT to 5.5%; 6) Financial costs/revenue decreased by 0.1 PCT to 2.6%.
Contract liabilities have grown, capital expenses have declined, and ROE has reached record highs. The FY2024 contract debt was 1.346 billion yuan, an increase of 2.4% over the previous year. Our analysis mainly caused delays in receipt of payments due to high temperatures in Sichuan. FY24 capital expenditure was $0.407 billion, down from 0.6 billion yuan last year, and ROE was 24%. Our analysis is mainly due to the company slowing down the high speed of self-construction and expanding more in the form of leasing.
Investment advice
We analyzed and looked forward to the future: 1) The core business of high schools is expected to maintain revenue growth of about 30% every year, and the net interest rate is expected to rise steadily during the climbing period: in the fall of 2024, the school network had 5,3900 high school students, an increase of 46.8% over the previous year. By 2027, 40-50 high schools will be operated nationwide, providing comprehensive education services to 0.06-0.08 million high school students, and the number of high school students is expected to double. 2) A breakthrough has been made in the high net interest rate trusteeship business, but the escrow business is currently limited by the low cost of early projects, which has a slight impact on revenue growth. It is expected that it will gradually increase in the future. Currently, 10 trusteeship schools (assuming that each school signs 3 classes) are expected to increase to 100 classes in 27 years. 3) The high net interest rate literacy business is currently growing steadily. It is expected to infiltrate the trusteeship school business in the future, and companies such as travel research, competition, AI, and supply chain are still growing.
Considering the reduced impact of high net interest fees on the growth rate, the company's revenue for the 2025-2026 fiscal year was reduced by 4.539/6.117 billion yuan to 4.489/5.966 billion yuan, adding 7.843 billion yuan in revenue for fiscal year 27; reducing net profit to mother of 0.931/1.334 billion yuan to 0.757/1.016 billion yuan in fiscal year 25-26, and adding 1.329 billion yuan in net profit to mother for fiscal year 27; corresponding reduction EPS was 0.43/0.62 yuan in 25-26 to 0.36/0.48 yuan, and an additional EPS of 0.65 yuan in fiscal year 27. The company's latest closing price (November 25, 2024) was HK$4.24, corresponding to 25-27PE of 11/8/6X (HKD1 = $0.93), maintaining a “buy” rating. The company plans to repurchase HK$0.2 billion, and has now repurchased HK$0.14 billion.
Risk warning
Risk of school expansion falling short of expectations; risk of fees for hosting projects falling short of expectations; risk of loss of management team and teaching staff; systemic risk
