Report summary

Kevin Education focuses on the fields of international education, quality education and vocational education, and is committed to providing diverse quality education services to students and society. In 2017, the company successfully listed on A-shares and became a representative enterprise in the field of quality education in China. At present, the company has established a three-core business model driven by “quality education+international education+vocational education”. The business covers basic education services, vocational education and training, art education, and specialty ski resort operations, to fully meet diverse market needs through offline schools, online platforms and resource integration.

In terms of equity structure, the controlling shareholder of the company, Haiguo Investment has strong strength and strong resource integration capabilities, providing strong support for the company's long-term development. Through capital investment, CICC guarantees the capital flow required for its operation and business development, and helps Kevin Education develop steadily in business fields such as education services and training. At the same time, with its own resources and influence, CITIC may bring policy support, industry resources, and potential cooperation opportunities to Kevin Education to strategically help Kevin Education occupy an advantageous position in the competitive education industry and promote its business growth and profitability improvement.

Vocational education has become one of the company's new growth points. Kevin Education responds positively to the national vocational education reform policy and deeply serves the needs of enterprises and individual users through the layout of skilled vocational education courses and certification services. Through cooperation with leading enterprises in the industry, the company optimizes the curriculum system and provides highly employment-oriented vocational training programs, covering various high-demand fields such as information technology and financial services.

In 2023, the company plans to expand the market coverage of the vocational education sector and build a complete vocational education ecosystem to meet the market's demand for high-quality skills training.

Develop quality education based on existing resources. Kevin School uses sports, arts, and technology education to lead the comprehensive quality development of students, forming differentiated competitive advantages and school characteristics with artistic and sports characteristics.

In addition to meeting the needs of schools for high-quality quality education courses, the company expands the boundaries of related education business from within the school to outside the school, promotes quality education and training with “Kevin characteristics” to the community, and provides complete K12 stage system camp education. Hosted Nishiyama Ski Resort with shareholders' support to promote the development of snow and ice sports.

Valuation and investment recommendations: Action Education is expected to achieve net profit to mother of -0.005 billion yuan, 0.015 billion yuan, and 0.36 billion yuan in 2024-2026, with year-on-year growth rates of -90.87%, -433.26%, and 136.29%. EPS is expected to be -0.01 yuan/share, 0.03 yuan/share and 0.06 yuan/share in 2024-2026, and PE is -426X, 133X and 63X respectively in 2024-2026. The company's losses are gradually narrowing, and the profit inflection point is approaching. They are optimistic about the company's development and give it a “buy” rating.

Risk warning: There is a risk that macroeconomic growth will slow down and business demand will be affected; there is a risk that offline business recovery will fall short of expectations or the expansion of education resources will be blocked