The company's FY24 revenue of 6.58 billion yuan increased by 17.1%, and net profit to mother increased by 3.3% after adjustment. The company maintained a stable dividend ratio and paid a final dividend of RMB 10.28 points per share. The dividend ratio was approximately 40% of the adjusted net profit to mother. As of 2024.8.31, cash reserves were RMB 6.63 billion.

By revenue market, domestic revenue was 6.34 billion, up 17.4%, and the performance was 2.82 billion, up 13.7%. The sharp increase in revenue was mainly driven by the increase in the number of students enrolled in the domestic market and the average income per student; the revenue of the international market segment was 0.24 billion, up 10.9%, and the performance was 0.05 billion, up 50%.

The number of students is growing steadily to promote high-quality employment

As of August 2024, the total number of full-time students enrolled in the Group was about 0.27 million, an increase of about 9%, including about 0.224 million higher education students, an increase of 12.5%. Member schools offered a total of 384 applied undergraduate majors, an increase of 12 over the previous year; the number of specialist majors increased to 206.

As of August 2024, the number of school-enterprise partners increased to 3,980, bringing the total number of industrial colleges to 61, covering the Huawei ICT Academy, Baidu School of Artificial Intelligence and Big Model Industry, etc., further promoting high-quality employment for graduates. Group member schools sent about 0.075 million applied graduates to the community in 2023/24, sending high-quality talents to the regional economy.

Deepen the development of key regions and internationalization, and embrace the continuous expansion of artificial intelligence and digital groups in strategic economic regions of countries such as the Guangdong-Hong Kong-Macao Greater Bay Area and the Chengdu-Chongqing Shuangcheng Economic Zone. As of September 2024, the expansion projects for the Shandong campus and Zhaoqing campus in Guangdong have been successfully completed, adding a capacity of nearly 0.04 million students, and increasing the number of campuses to 23. The number of students enrolled in the Group's international education courses has also increased by more than 100%, and has carried out in-depth cooperation with more than 200 well-known institutions around the world to launch various joint training programs to provide students with more opportunities for international development.

Launch the “Smart Campus” project to promote the deep integration of digital technology with teaching, scientific research and management.

Innovative teaching scenarios such as smart classrooms and virtual simulation laboratories are widely used to further enhance educational efficiency and students' learning experience, and enhance the overall strength of education.

Promote internal talent development and comprehensively enhance professional ability

The Group attaches great importance to internal talent development, and has provided member schools with 7 major training series covering education and teaching, financial management, and informatization through the training platform. The Group promotes resource sharing and teaching innovation among member schools by organizing teaching skills exchange activities.

Looking forward to the future, we will continue to adhere to the path of high-quality development, deepen the integration of industry and education, innovate international education models, cultivate skilled talents, and contribute to building a strong nation of education, science and technology, and talents.

Adjust profit forecasts to maintain “hold” rating

Based on FY24's performance, the company increased investment in education resources. We adjusted the FY25 profit forecast and added the FY26-27 profit forecast; we expect FY25 revenue to be 6.78 billion yuan (original value 7.5 billion yuan), FY25 adjusted net profit of 2.05 billion yuan (original value was 2.42 billion yuan), and FY25EPS was 0.76 yuan (original value was 0.9 billion yuan); FY26-27 Revenue was 6.99 billion yuan and 7.21 billion yuan, respectively; adjusted net profit to mother was 2.16 billion yuan and 2.29 billion yuan, respectively; EPS was 0.8 yuan and 0.84 yuan, respectively.

Risk warning: enrollment falls short of expectations; new campus expansion falls short of expectations; loss of core executives.