Group 1 - The Hong Kong education stocks have experienced a decline, with China Oriental Education (00667.HK) falling over 4% [1] - Other companies such as Xijiao International (01765.HK) and New Oriental (09901.HK) also saw declines of more than 3.5% and nearly 3% respectively [1] - The downward trend includes other firms like Excellence Education Group (03978.HK) [1]

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **media industry** and highlights significant opportunities in **AI** and **AI glasses** for the second quarter and second half of 2025, particularly following positive guidance from President Xi Jinping regarding AI glasses, which may catalyze the industry [1][2] - The **gaming sector** is noted for its strong performance, with several companies exceeding market expectations in the first quarter of 2025 [2] Core Insights and Arguments - **AI and AI Glasses**: The media industry should pay attention to AI and AI glasses, with a projected market size of **4.71 billion** yuan by 2027, and **Inpaas** expected to generate over **90 million** yuan in net profit, contributing to a market capitalization increase of **2.8 billion** yuan [1][5] - **Film and Gaming Projects**: Anticipated summer releases include animated films like **"Three Kingdoms Starry Sky"** and **"Wang Wang Island,"** along with games such as **"One Ring"** and **"SLG 5,000 Years,"** which are expected to drive revenue for related companies [1][4] - **Fengjun Media**: Reported first-quarter revenue of **2.858 billion** yuan, a **4.7%** year-on-year increase, and a net profit of **1.135 billion** yuan, up **9.14%** year-on-year, with a dividend yield exceeding **6%** [1][8] - **Gaming Sector Performance**: The gaming sector reported a profit of **3.476 billion** yuan in Q1 2025, a **41.7%** increase year-on-year, with notable performances from companies like **Kying Network**, **Perfect World**, **ST Huayun**, and **Jibite** [1][11] Additional Important Insights - **Mergers and Acquisitions**: Fengjun Media's recent acquisition of **Xinchao** is expected to enhance overall efficiency and bargaining power, positively impacting future performance [1][9] - **Education Sector**: The education sector is highlighted for its strong domestic demand characteristics, with recommendations to focus on high-performance, high-dividend stocks like **Oriental Education**, which saw a **15%-35%** increase in spring enrollment [2][12] - **Doushen Education**: As the first AI+ education application stock in A-shares, its **AI class** product is expected to launch in Q2, potentially replacing online language courses and driving significant revenue growth [2][15][16] - **Market Dynamics**: The K12 education sector is advised to focus on AI-enabled education, with companies like **Doushen Education** and **Shengtong Co.** showing promise for future growth [2][14][17] This summary encapsulates the key points discussed in the conference call, providing insights into the media and gaming industries, as well as emerging opportunities in AI and education sectors.

Core Insights - The rapid development of technologies such as artificial intelligence, big data, and cloud computing is significantly transforming global industrial structures and talent demand patterns [1] - China, as a major manufacturing and digital economy power, faces unprecedented opportunities and challenges in vocational education [1] - The digital economy in China reached a scale of 53.9 trillion yuan by the end of 2023, accounting for 42.8% of GDP, with a talent gap of 25 million [1][16] - The Ministry of Human Resources and Social Security and other departments have launched an action plan to accelerate digital talent cultivation from 2024 to 2026 [1] Industry Trends - Vocational education is transitioning from traditional skill training to a "digital + skills" model, emphasizing the need for high-quality technical talent [1] - AI is driving the creation of new professional demands, leading to the introduction of six new AI-related majors by Xinhua Internet Technology [3][5] - These new majors focus on key areas such as artificial intelligence, new energy, and popular fields like short videos and e-commerce [5][6] Company Initiatives - China Oriental Education is restructuring its vocational education framework using AI technology, creating a replicable model for digital transformation [2] - The company has developed a "dual-teacher" system, incorporating industry professionals into teaching roles to enhance practical skills [12] - Collaborations with leading companies like Huawei and Autodesk are aimed at developing relevant curricula and providing practical training opportunities [10][12] Educational Innovations - The "Deep Smart Campus" platform developed by China Oriental Education utilizes AI to enhance teaching and learning processes, providing personalized feedback and support [13] - Project-based learning is emphasized, allowing students to engage in real-world projects, thereby improving their practical skills and employability [7][8] - The integration of advanced technologies such as VR/AR in training environments is creating immersive learning experiences for students [13] Talent Development - The first batch of students in the new quality production-related majors reached 3,000, with a job placement rate of over 95% [16] - The focus on innovation capability, problem-solving skills, and teamwork is essential for meeting the demands of the new quality production era [16] - The comprehensive vocational education innovation system established by China Oriental Education significantly enhances talent cultivation quality and provides valuable insights for industry reform [16]

Core Viewpoint - The strategic collaboration between China Oriental Education Group's Oumandi Fashion Beauty Education and Japan's Yamano College of Beauty Arts and Yamano Beauty Vocational School marks a significant step towards the internationalization of beauty education in response to China's national strategy for deeper integration of industry and education [1][3][5]. Group 1: Strategic Collaboration - The signing ceremony was attended by key industry figures, highlighting the high expectations for this collaboration to drive transformation in beauty education [3][5]. - The partnership aims to enhance technical innovation, standard interoperability, and talent cultivation in the beauty education sector [3][5][8]. Group 2: Institutional Background - Yamano College of Beauty Arts, established in 1991, is Japan's only beauty arts university with a history dating back to 1934, focusing on comprehensive education in beauty, health, welfare, and arts [3][5]. - Yamano Beauty Vocational School is renowned in the beauty and hairdressing education field, leveraging strong industry resources to provide students with ample practical and employment opportunities [3][5]. Group 3: Future Plans - The collaboration will focus on building fashion beauty technology standards, digital and artistic educational innovations, and expanding student exchanges [7]. - Three major benchmark projects are planned for 2025: International Fashion Beauty Academy, Beauty Technology Innovation Workshop, and Oriental Aesthetics International Performance [7][8]. - Oumandi Fashion Beauty Education has established over ten campuses nationwide, training more than 20,000 beauty professionals annually, which underscores the importance of this strategic partnership for the internationalization of beauty education [8].

Core Viewpoint - The strategic partnership between China Oriental Education Group and Japan Hollywood University aims to enhance international vocational education and create a new model for the beauty industry through collaboration in various educational and industry sectors [1][2][4]. Group 1: Strategic Collaboration - The signing ceremony took place at Japan Hollywood University, marking a significant step in international cooperation in vocational education [1]. - The partnership focuses on areas such as international education advancement, study tours, academic exchanges, digital education innovation, and industry empowerment [2][4]. - Both institutions plan to explore the establishment of a "Fashion Beauty Industry College" to integrate education with industry practices, addressing market demands for high-quality talent [2][4]. Group 2: Educational Goals and Standards - The collaboration aims to promote mutual recognition of beauty technology standards between China and Japan, developing international courses that align with global market trends [6][9]. - The partnership is expected to enhance the quality of vocational education in the beauty industry, aligning with national policies for deeper integration of education and industry [9][10]. - The cooperation will leverage the strengths of both institutions, combining Japan's innovative beauty education with China's practical experience in the fashion beauty sector [4][6]. Group 3: Industry Impact - This collaboration is seen as a significant breakthrough in vocational education international cooperation, responding to national policies aimed at industry upgrading [7][9]. - The partnership is anticipated to provide a solid talent foundation for the transformation and upgrading of the beauty industry in China, promoting high-quality development [9][10]. - The initiative is expected to enhance the international competitiveness of Chinese vocational education, particularly in the beauty sector, by developing high-caliber professionals [9][10].

Core Viewpoint - China Oriental Education has shown significant stock price growth of 90% this year, outperforming the vocational education sector by over 85 percentage points, despite previous declines in market value due to policy impacts [1][2] Financial Performance - In 2024, the company reported total revenue of 4.116 billion RMB, a year-on-year increase of 3.5%, with gross profit reaching 2.115 billion RMB, up 10.8%. Shareholder net profit surged by 88% to 513 million RMB, with gross and net profit margins improving to 51.38% and 12.46%, respectively [1][5][7] - The company plans to distribute a final dividend of 0.22 HKD per share, resulting in a payout ratio of 93.5% and a dividend yield of nearly 4% [1] Brand Performance - China Oriental Education operates five training brands, achieving an average employment rate of 94.9% across these brands in 2024. Revenue contributions from each brand were as follows: New Oriental (46.6%), Oumandi (2.56%), Xinhua Computer (18.54%), Wantong (22.2%), and Oumandi (8.3%) [2][4] - The average tuition fee across all brands was 27,600 RMB, reflecting a 3.6% increase, with training participants totaling approximately 146,300, a slight increase of 0.4% year-on-year [2][4] Cost Management - The company has optimized its cost structure, with selling, administrative, and financing expense ratios decreasing to 23.66%, 12.34%, and 2.87%, respectively. The overall period expense ratio fell to 38.87%, a decrease of 16.75 percentage points year-on-year [5] Industry Context - The vocational education and training market in China exceeded 1 trillion RMB in 2022, with stable growth expected. The sector is experiencing renewed opportunities due to high unemployment rates and a demand for specialized skills [6] - China Oriental Education stands out as a rare investment opportunity in the vocational training sector, benefiting from increased attention and a strong fundamental performance [6][8]

Group 1: Industrial AI and Automation - The core business of the company shows stable growth, with revenue reaching 9.14 billion yuan in 2024, a year-on-year increase of 6% [3] - The industrial automation and intelligent manufacturing solutions segment achieved revenue of 5.64 billion yuan, up 14% year-on-year, accounting for 62% of total revenue [3] - The company has established a robot product business system, generating revenue of 56.01 million yuan in 2024, marking rapid growth from zero [4] Group 2: Alibaba's E-commerce and Cloud Computing - Alibaba is expected to achieve total revenue of 236.1 billion yuan in FY2025Q4, representing a year-on-year growth of 6% [9] - The Taotian Group's revenue is projected to grow by 5% to 98 billion yuan, with a gross merchandise volume (GMV) increase of 5% [10] - The cloud computing segment is anticipated to generate revenue of 30 billion yuan, reflecting a year-on-year growth of 17% [12] Group 3: Jitu Express Logistics - Jitu Express has expanded its logistics business across 13 countries, leveraging e-commerce growth in Southeast Asia and China [14] - The company achieved profitability in 2024, marking a significant turnaround [15] - Revenue projections for Jitu Express are set at 11.44 billion, 13.01 billion, and 14.89 billion USD for 2025-2027, with corresponding net profits of 343 million, 583 million, and 886 million USD [23] Group 4: Anhui Heli Engineering Machinery - Anhui Heli reported revenue of 17.325 billion yuan in 2024, a year-on-year increase of 0.99% [25] - The company has accelerated its overseas market expansion, achieving a 13% year-on-year increase in overseas revenue to 6.93 billion yuan [27] - The domestic market revenue decreased by 6% to 10.19 billion yuan, but the company is optimizing its industrial layout [27] Group 5: China Oriental Education - The company achieved revenue of 4.12 billion yuan in 2024, a year-on-year increase of 3.5%, with a net profit of 510 million yuan, up 88% [29] - The gross profit margin improved to 51.4%, driven by an optimized course structure [30] - The company plans to maintain a dividend payout ratio of no less than 60% from 2025 to 2027 [31] Group 6: Weichai Power - Weichai Power reported revenue of 215.69 billion yuan in 2024, with a net profit of 11.4 billion yuan, reflecting a year-on-year growth of 26.5% [34] - The company plans to distribute a cash dividend of 3.47 yuan per 10 shares, totaling approximately 30.24 billion yuan [37] - Revenue projections for Weichai Power are set at 227.7 billion, 244.5 billion, and 263.5 billion yuan for 2025-2027, with corresponding net profits of 12.4 billion, 13.7 billion, and 15.5 billion yuan [38] Group 7: Hehe Information Technology - Hehe Information is a leading AI and big data company, with a revenue compound annual growth rate (CAGR) of 21% from 2022 to 2024 [39] - The company has a large user base, with 168 million monthly active users (MAU) across its core products as of Q3 2024 [39] - The intelligent text recognition market is projected to reach 33 billion USD globally by 2030, with a CAGR of 14.8% from 2023 to 2030 [44]

Educational Operations - As of December 31, 2024, the company operated 233 schools and centers with an average enrollment of 146,294 students[22] - The culinary arts segment had 92 schools with 58,133 students enrolled, while the information technology segment had 56 schools with 38,827 students[13] - The auto services segment operated 41 schools with 39,965 students enrolled, and the fashion and beauty segment had 8 schools with 4,333 students[13] - The company established Anhui Xinhua Education to consolidate all schools under a single entity, enhancing operational efficiency[15] - The company expanded its business to Hong Kong, increasing its operational footprint[18] - The number of schools in operation reached 126, with the establishment of Cuisine Academy to provide customized catering experiences[18] - The company is focused on vocational training in four key sectors: culinary arts, information technology, auto services, and fashion and beauty[6] - The average number of students enrolled in the western cuisine and pastry segment was 5,036 across 36 schools[13] - The average number of students enrolled nationwide in 2024 was 146,294, with a total of 233 institutions operating across the country[48] - The company operates 233 schools and centers across most provinces in mainland China and Hong Kong as of December 31, 2024[60] Financial Performance - Revenue for the year ended December 31, 2024, is projected to be RMB 4,116 million, up from RMB 3,979 million in 2023, indicating a year-over-year increase of about 3.4%[34] - Gross profit for 2024 is expected to be RMB 2,115 million, compared to RMB 1,908 million in 2023, reflecting a growth of approximately 10.9%[34] - Net profit for the year is anticipated to reach RMB 513 million, significantly higher than RMB 273 million in 2023, marking an increase of about 88.0%[34] - Adjusted net profit for 2024 is projected at RMB 525 million, up from RMB 281 million in 2023, which is an increase of approximately 86.8%[34] - Adjusted EBITDA for 2024 is expected to be RMB 1,376 million, compared to RMB 1,136 million in 2023, representing a growth of about 21.2%[34] - The total assets as of December 31, 2024, are projected to be RMB 9,484 million, an increase from RMB 9,291 million in 2023, indicating a growth of approximately 2.1%[34] - The net assets as of December 31, 2024, are expected to be RMB 5,749 million, compared to RMB 5,608 million in 2023, reflecting an increase of about 2.5%[34] - For the year ended 31 December 2024, the Group's revenue from the main business was RMB 4,116 million, representing a year-on-year increase of 3.5% compared to 2023[48] - The net profit for the year was RMB 513 million, representing a year-on-year increase of 88.0% compared to 2023; the adjusted net profit was RMB 525 million, representing an increase of 86.6%[48] Enrollment Trends - The number of new students enrolled was 143,441, representing a year-on-year decrease of 6.2% compared to 2023[48] - Total new student enrollments for Culinary Arts decreased by 7.7% from 68,473 in 2023 to 63,228 in 2024[65] - Long-term enrollments for New East and Cuisine Academy saw a significant increase of 124.5% for the one to less than two years category, rising from 2,234 in 2023 to 5,015 in 2024[65] - The number of short-term enrollments in Culinary Arts decreased by 8.4%, from 39,873 in 2023 to 36,542 in 2024[65] - The number of new students enrolled in Omick's long-term programs decreased by 4.6% from 1,314 in 2023 to 1,254 in 2024[65] - New students enrollment in the Information Technology and Internet Technology segment decreased by 13.4% from 29,742 in 2023 to 25,766 in 2024[66] - The Fashion and Beauty segment saw a significant increase in new students enrollment, rising by 79.6% from 3,406 in 2023 to 6,118 in 2024[67] - The total new students enrollment for the Group decreased by 6.2% from 152,881 in 2023 to 143,441 in 2024[67] - In the Culinary Arts segment, new students enrollment decreased by 2.1% from 59,388 in 2023 to 58,133 in 2024[70] - The Auto Services segment reported a slight increase in new students enrollment, rising by 2.0% from 39,175 in 2023 to 39,965 in 2024[73] Strategic Initiatives - The company aims to support China's evolving workforce requirements driven by economic growth and industrial upgrades[6] - The Group has invested in vocational education industrial parks in five regions, with the capacity to accommodate over 120,000 teachers and students upon completion[49] - The Group plans to accelerate the development of vocational education industrial parks and expand student enrollment by leveraging high-quality resources[51] - The Group aims to enhance its teacher recruitment standards and develop new majors aligned with regional economic needs[52] - The Group reorganized its business segments to streamline operations, integrating various educational brands under specific categories[59] - The Group's strategy in new student enrollment focused on optimizing course structure to attract more high-value new students[85] - The Group plans to establish Vocational Education Industrial Parks to enhance its market position and consolidate its brand[148] - The Vocational Education Industrial Parks will be equipped with advanced teaching and practical training facilities for all seven school/center brands[148] - The Group aims to improve the environment of school premises and increase stability for long-term course students through these parks[148] - The Group intends to diversify its course offerings in culinary arts, information technology, auto services, and fashion and beauty, responding to industry trends and market demand[151][153] Cost Management and Efficiency - Cost of revenue decreased from approximately RMB 2,070 million for the year ended December 31, 2023, to approximately RMB 2,002 million for the year ended December 31, 2024, representing a decrease of 3.3%[89] - The decrease in cost of revenue was attributed to tightened cost control measures during the year ended December 31, 2024[94] - The Group's selling expenses decreased from approximately RMB1,037 million in 2023 to approximately RMB 974 million in 2024, reflecting tighter control on advertising costs[104] - Administrative expenses decreased from approximately RMB 529 million in 2023 to approximately RMB 508 million in 2024, representing 12.3% of revenue compared to 13.3% in 2023[105] - Finance costs for the year ended 31 December 2024 were approximately RMB 118 million, down from RMB 139 million in 2023[106] Employee and Management Structure - As of December 31, 2024, the Group employed a total of 10,346 employees, with 50.5% being full-time teachers and instructors[157][159] - The Group's remuneration policies are based on individual qualifications, experience, performance, and prevailing market rates[161] - The Group's strategic focus on vocational skill education aligns with anticipated market demand growth in sectors like artificial intelligence and healthcare[151][156] - The board of directors includes experienced individuals with over 30 years of experience in education, such as Mr. Wu Wei and Mr. Wu Junbao[166][173] - Mr. Wu Wei, the chairman of the board, is responsible for the overall management and strategic development of the group[166] - The company has a structured employee compensation policy that includes basic salaries and performance-based bonuses[165] - The company utilizes various recruiting channels, including word-of-mouth referrals and online recruiting[165] - The company has a commitment to comply with local labor regulations regarding employee benefits and contributions[163]

2025 年 04 月 10 日 公司研究 评级：买入(首次覆盖) | 研究所： | | | | --- | --- | --- | | 证券分析师： | | 杨仁文 S0350521120001 | | | | yangrw@ghzq.com.cn | | 证券分析师： | | 谭瑞峤 S0350521120004 | | | | tanrq@ghzq.com.cn | | 联系人 | ： | 王春宸 S0350123070046 | | | | wangcc@ghzq.com.cn | [Table_Title] 产品升级、学校网络和招生结构优化，看好利润 持续释放 ——中国东方教育（0667.HK）公司点评 最近一年走势 | 事件： | | --- | ①2025 年 4 月 3 日，公司旗下万通技校发布新闻稿，宣布 2025 年春季 大型校园人才双选会暨校企合作签约授牌仪式圆满落成。 ②公司 2025 年 3 月 27 日公告 2024 年年度业绩，2024 年实现营收 41.2 亿元，yoy+3.5%，归母净利润 5.1 亿元，yoy+88.0%。 投资要点: 相对恒生指数表现 2025/04/09 ...

证券研究报告 | 2025年04月03日 中国东方教育（00667.HK） 优于大市 提效控费成效显著，高中生源提供增长新引擎 风险提示：学生就读中职意愿下滑；市场竞争加剧；就业质量不及预期。 投资建议：公司发力面向高中生源的 1-2 年期培训课程，以及内部打通纵向 升学，提高对中职学生吸引力，缓释中职学生人数增长压力。叠加疫情对公 司 3 年制学生人数影响逐步淡化，预计 2025 年总培训人次将重回上升通道。 考虑到收入结构优化及校区调整成效逐步释放，同时公司加强预算管理，预 计盈利能力将持续修复。基于此，我们预计 2025-2027 年公司归母净利润 6.3/7.3/8.5 亿元，同比+22.3%/17.7%/16.3%，对应 CAGR 为 16.7%，对应 PE 为 16/13/12x。维持"优于大市"评级。 | 盈利预测和财务指标 | 2021 | 2024 | 2025E | 2026E | 2027E | | --- | --- | --- | --- | --- | --- | | 营业收入(百万元) | 3,979 | 4,116 | 4,413 | 4,779 | 5,218 | | (+/ ...