Key Points Industry and Company Overview - **Company**: Skarlo Education - **Industry**: Education, specifically after-school tutoring and training - **Location**: Focus on Shenzhen and Guangdong Province, with plans to expand to Guangzhou Growth and Expansion - **Shenzhen Expansion**: Over 145 campuses in Shenzhen, with plans to open 10 more during the winter break, reaching 150-160 by the end of the year, a 40% increase. - **Guangzhou Expansion**: Re-entry into the Guangzhou market with ongoing campus selection and headquarters renovation. Expected to start operations by the end of the year or early next year. - **Course Performance**: High school courses saw a 50% increase in revenue, and configuration growth of over 30%. Winter courses are prepared and a large promotional event was held on November 11th. Business Strategy - **New Business Lines**: Plans to add international and study abroad programs, with one international campus in Futian and plans to open 1-2 more in Nanchang and Futian. - **Profitability**: Expected to maintain a 20% profit margin for the full year of 2024, with a slight decrease in the second half due to costs associated with re-entering the Guangzhou market and opening new campuses. Market and Competition - **Market Demand**: Strong demand for after-school tutoring and training, with a focus on middle and low-income families. - **Competition**: Industry remains fragmented, with both small independent institutions and large chains operating. Skarlo Education has a competitive advantage as a regulated chain institution. Policy and Regulations - **Policy Stability**: Stable policies in Guangdong Province, with higher barriers to entry for non-disciplinary training institutions. - **Beijing Policy**: Positive signal for the industry's healthy development, with detailed guidelines for the application of licenses and the division of responsibilities between city and district education bureaus. Financial Performance - **Revenue Growth**: Revenue growth of about 2 percentage points compared to last year, with an increase of 5 percentage points announced, but slightly lower due to discounts for early enrollment or multiple subject enrollment. - **Profitability**: Profit margin in the first half of the year was stable compared to the same period last year, but slightly lower in the second half due to increased costs associated with re-entering the Guangzhou market and opening new campuses. Future Outlook - **Guangzhou Market**: Expected to start operations in January 2025, with a focus on full-grade, full-subject experience classes and high school B classes. Plans to expand the Guangzhou market over one year and contribute to overall business growth from 2026 onwards. - **Long-term Growth**: Focus on expanding the Guangzhou market, improving product and teaching quality, and consolidating and expanding the Greater Bay Area market.

Summary of Conference Call Company and Industry Overview - The conference call involved a discussion about the company "思考乐" (Thinker Education) and its operations in the K-12 education sector, particularly focusing on the competitive landscape in Shenzhen and Guangzhou [1][2][3]. Key Points and Arguments 1. **Expansion Plans**: The company currently operates over 145 locations in Shenzhen and plans to open approximately 10 new locations during the winter break, aiming for a total of 150-160 locations by the end of 2024, representing over 40% growth compared to the previous year [1][2]. 2. **Market Recovery in Guangzhou**: The company is preparing to re-enter the Guangzhou market by the end of this year, with site selection and renovations already underway [1][2]. 3. **Course Performance**: The company reported over 50% growth in high school tuition collections year-on-year, with overall course revenue growth exceeding 30% [2][4]. 4. **Competitive Landscape**: The education market in Guangdong is described as stable, with a mix of established players and new entrants. The company is observing changes in parental spending behavior due to economic conditions [3][4][8]. 5. **Regulatory Environment**: Recent policy changes in Beijing regarding private education are seen as positive for the industry, promoting healthy and orderly development [6][7]. 6. **Demand Trends**: There is a growing demand for educational services, particularly among students facing high school entrance exams, with an expected increase in the number of students participating in training programs [9][10]. 7. **High School Segment Growth**: The high school segment is projected to contribute 18-20% of total revenue in 2024, with expectations to exceed 20% in subsequent years [19]. 8. **Financial Health**: The company maintains a healthy financial position, with over 500 million to 600 million in cash reserves, and is considering dividend distributions if conditions allow [19][20]. 9. **Future Outlook**: The company aims to strengthen its presence in Guangzhou and enhance its service offerings, leveraging its experienced team to capture market share [21][22]. Additional Important Insights - **Pricing Strategy**: The average course price has increased by approximately 2% year-on-year, with discounts offered for early registrations and multi-course enrollments [12]. - **Operational Efficiency**: The company is focusing on increasing the capacity of existing locations while also expanding its network, indicating a balanced growth strategy [10][11]. - **Impact of Small Institutions**: The presence of smaller, unregulated institutions (referred to as "小黑班") is acknowledged, but the company believes its compliance and quality of service will attract parents back to formal institutions [16][17]. This summary encapsulates the key discussions and insights from the conference call, highlighting the company's strategic direction, market dynamics, and financial health.

Financial Performance - Revenue for the six months ended June 30, 2024, reached RMB 399,113,000, representing a 58.8% increase from RMB 251,323,000 in the same period of 2023[8]. - Operating profit increased to RMB 113,819,000, up 129.2% from RMB 49,656,000 year-over-year[8]. - Profit attributable to owners for the period was RMB 82,652,000, a 92.5% increase compared to RMB 42,938,000 in the previous year[8]. - Basic earnings per share rose to RMB 15.21, reflecting a 96.8% increase from RMB 7.73 in the prior period[9]. - Adjusted profit attributable to owners was RMB 93,542,000, marking a 101.1% increase from RMB 46,511,000 year-over-year[8]. - The group's operating profit for the six months ended June 30, 2024, was RMB 113.8 million, with total revenue increasing by 58.8% to RMB 399.1 million compared to RMB 251.3 million for the same period last year[11][16]. - The net profit attributable to owners for the six months ended June 30, 2024, was RMB 82.7 million, up from RMB 42.9 million in the same period last year, primarily due to increased tutoring hours and improved operational efficiency[11]. - The gross profit increased by 70.2% to RMB 177.1 million, with the gross margin rising from 41.4% to 44.4%[21]. - The group's profit before tax increased by 132.5% from RMB 46.9 million for the six months ended June 30, 2023, to RMB 109.0 million for the six months ending June 30, 2024[30]. - Income tax expenses rose by 506.8% from RMB 4.4 million for the six months ended June 30, 2023, to RMB 26.8 million for the six months ending June 30, 2024, primarily due to an increase in taxable profit[31]. Operational Strategies - The company aims to diversify its offerings, including educational tourism and international courses, to broaden its revenue base[6]. - Future strategies include expanding into new markets and enhancing product offerings to meet diverse student needs[6]. - The group continues to focus on student-centered teaching methods, with class sizes typically not exceeding 20 students[6]. - The group is committed to providing quality after-school care services, ensuring a safe and nurturing environment for students[6]. - The group launched educational tourism and international courses starting July 2023, aiming to broaden its revenue base for long-term development[12]. Market and Growth Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[52]. - The company is expected to continue its growth trajectory in the private education sector, leveraging its strong market position in Guangdong Province[83]. - The company plans to actively seek investment opportunities to enhance its revenue base and improve future financial performance[43]. - The company is expanding its market presence in Southeast Asia, targeting a 15% market share by 2025[165]. - New product launches are expected to contribute an additional $50 million in revenue by the end of 2024[165]. Financial Position and Liquidity - Total equity as of June 30, 2024, was RMB 532.1 million, up from RMB 453.4 million as of December 31, 2023[39]. - Cash and cash equivalents increased by 7.7% from RMB 256.5 million to RMB 276.2 million during the same period[39]. - The group's current liabilities amounted to RMB 459.3 million as of June 30, 2024, compared to RMB 450.8 million as of December 31, 2023[39]. - The debt-to-equity ratio was 5.6% as of June 30, 2024, compared to 0% as of December 31, 2023, indicating the introduction of bank borrowings[39]. - The company reported a net cash flow from operating activities for the six months ended June 30, 2024, of RMB 41,699,000, a significant improvement compared to a cash outflow of RMB 7,561,000 in the same period of 2023[69]. - The company’s cash flow from interest received increased to RMB 2,461,000, up from RMB 792,000 in the previous year, indicating improved financial management[69]. - The group maintained a cash reserve and utilized bank financing to mitigate liquidity risk, with no significant liquidity risk identified by the board[77]. Shareholder and Governance Matters - The board does not recommend the payment of an interim dividend for the six months ending June 30, 2024, consistent with the previous year[44]. - The company has complied with all applicable corporate governance codes as of June 30, 2024[139]. - The company has established an audit committee to oversee financial reporting and risk management[140]. - The company’s share repurchase is expected to enhance earnings per share and increase net asset value per share for shareholders[141]. Employee and Compensation - The company has acquired a total of 1,540,000 shares at a total cost of HKD 6,977,000 (approximately RMB 6,370,000) under the share incentive plan[48]. - The total share-based payment expense recognized for the six months ended June 30, 2024, is approximately RMB 13,930,000, compared to RMB 4,477,000 for the same period in 2023[129]. - The total number of stock options that are vested and exercisable as of June 30, 2024, is 9,169,050[124]. Risk Management - The group’s financial risk management plan focuses on minimizing market risks, including foreign exchange and interest rate risks[76]. - The group has not experienced any significant changes in risk management functions or policies since December 31, 2023[76]. - The group plans to conduct annual assessments of the fair value of Level 3 financial instruments, seeking external valuation experts as necessary[82]. Research and Development - Research and development expenses increased by 21.3% to RMB 10.6 million, driven by higher personnel costs in R&D[25]. - Research and development expenses increased by 10% to $20 million, focusing on innovative educational technologies[165].

Investment Rating - The investment rating for the company is "Buy" with a current price of 5.86 HKD and a target value of 6.23 HKD [1]. Core Insights - The company reported a strong performance in the first half of 2024, achieving revenue of 400 million RMB, a year-on-year increase of 58.8%. The gross margin was 44.4%, and net profit reached 82.65 million RMB, up 92.5% year-on-year. Adjusted net profit was 93.54 million RMB, reflecting a 101.1% increase, exceeding market expectations [2]. - The significant growth in student enrollment supported the impressive revenue performance, with contract liabilities showing strong results, providing solid support for the full-year performance. The non-academic quality courses generated revenue of 370 million RMB, a year-on-year increase of 57.8%, while tutoring courses achieved revenue of 32.58 million RMB, up 70.6%. The number of enrolled students reached 184,000, a 58.2% increase year-on-year, with total class hours at 4.564 million, also up 58.1%. Contract liabilities at the end of the first half of 2024 were 250 million RMB, a 93.2% increase year-on-year, laying a strong foundation for revenue in the second half and future renewals [2]. - The improvement in operational efficiency has led to enhanced profitability, with a gross margin of 44.38%, an increase of 3.0 percentage points year-on-year. The sales and management expense ratios were 1.6% and 16.7%, respectively, down 0.4 and 6.8 percentage points year-on-year, benefiting from an optimized competitive landscape and improved operational efficiency. The adjusted net profit margin was 23.4%, up 4.9 percentage points year-on-year [2]. - The company is pursuing long-term development through diversification in non-academic areas, having launched educational tourism and international courses since July 2023. The company aims to strengthen its "LeXue" brand, which includes art, sports, painting, performance, calligraphy, scientific literacy, traditional culture, logical thinking training, and international literacy, to promote comprehensive diversification in the future [2]. - Based on the strong performance in the first half of 2024, the profit forecast has been adjusted upwards. The expected adjusted net profits for 2024-2026 are 170 million RMB, 240 million RMB, and 310 million RMB, respectively. The company is given a 22x PE valuation for 2024, resulting in a target value of 6.23 HKD per share [2]. Financial Summary - The company's main revenue for 2024 is projected to be 852 million RMB, with a growth rate of 49.3%. The adjusted net profit is expected to be 174 million RMB, reflecting a growth rate of 60.9% [3]. - The gross margin is expected to remain strong, with a projected rate of 44.0% in 2024, and the adjusted net profit margin is expected to be 20.4% [9]. - The company's return on equity (ROE) is projected to be 28.2% in 2024, indicating strong profitability [9].

Investment Rating - The report assigns an "Outperform" rating to the company, indicating a positive outlook compared to the market benchmark [2][3]. Core Insights - The company has shown significant growth in its non-academic education products, with a revenue of 399 million RMB in H1 2024, representing a year-on-year increase of 58.8% [2]. - The adjusted net profit for the same period reached 94 million RMB, reflecting a 101.1% increase year-on-year, driven by effective cost management and expansion of its school network [2][3]. - The company opened 35 new branches in H1 2024, bringing the total to 145, which supports its growth strategy in the education sector [2]. - The contract liabilities increased by 93.2% year-on-year to 249 million RMB, indicating strong future revenue potential [2]. - The company has initiated new business lines in educational tourism and international courses, which are expected to contribute to future revenue growth [2]. Financial Summary - For the fiscal years 2024 to 2026, the company is projected to achieve revenues of 843 million RMB, 1.15 billion RMB, and 1.54 billion RMB, respectively, with corresponding adjusted net profits of 174 million RMB, 238 million RMB, and 324 million RMB [3][5]. - The gross margin is expected to improve from 41.8% in 2023 to 44.5% by 2026, reflecting enhanced operational efficiency [5]. - The company's net profit margin is projected to increase from 15.1% in 2023 to 19.7% in 2026, indicating a positive trend in profitability [5].

港股公司报告 | 公司点评 | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------- ...

2024 年 08 月 16 日 思考乐教育（1769.HK） 上半年业绩大幅增长，盈利改善 思考乐教育是中国华南地区领先民办教育服务提供商，成立于 2012 年。双减后公 司调整经营战略，聚焦素质教育和高中辅导业务。23 年开始快速扩张，截至 24 上 半年公司拥有学习中心超过 145 家，并且业绩得到显著恢复与提升。我们看好其未 来成长空间，建议关注。 报告摘要 上半年净利润大幅增长。2024 年上半年公司收入达到 4.0 亿，同比增长 58.8%，归母净利润达到 0.8 亿，同比增长 92.5%，经调整归母净利润 0.9 亿， 同比增长 101.1%。调整项主要为员工股权激励费用 0.1 亿元。公司毛利率达到 44.4%，同比提升 3 个百分点，经调整净利率为 23.4%，同比提升 4.9 个百分 点。盈利能力提升是因为思考乐的营运效率提升，以及教培行业经过双减后处 在快速复苏中，行业竞争与价格竞争趋缓，租金成本大幅减少等。 各项业务均处于快速发展中。目前思考乐在深圳市拥有最多的牌照数，学习中 心超过 145 家，同比增长 57.6%。分业务看，非学业素质课程收入 3.7 亿，同 比增长 57.8%，辅 ...

国泰君安版权所有发送给上海东方财富金融数据服务有限公司.东财接收研报邮箱.ybjieshou@eastmoney.com p1 股 票 研 究 证 券 研 究 报 告 门店数高增、客单提升、人效增强 思考乐教育(1769) [Table_Industry] 教育产业 [Table_Invest] 评级： 增持 ——思考乐教育 24H1 业绩点评 [table_Authors] 刘越男(分析师) 庄子童(分析师) 021-38677706 021-38032683 liuyuenan@gtjas.com zhuangzitong026312@gtjas.com 登记编号 S0880516030003 S0880524070002 本报告导读： 业绩符合前期预告，核心超预期来自经营端：门店高增下客单价、利润率、单店营 收、人效均在提升。 投资要点： [Table_Summary] 投资建议：考虑到竞争格局改善及加速拓店，维持预测公司 2024- 2025-2026 年经调整归母净利润预测为 1.78/2.49/3.3 亿元，EPS 为 0.32/0.44/0.58 元，维持增持评级。 业绩简述：24H1 实现营收 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示概不就因本公告全部或任何部分內容所產生或因依賴該等內容而引致的任何損失 承擔任何責任。 配考乐教育 S C H O L A R E D U C A T I O N SCHOLAR EDUCATION GROUP 思 考 樂 教 育 集 團 （ 在開曼群島註冊成立的有限公司） （股份代號：1769） 截至二零二四年六月三十日止六個月的中期業績公告 | --- | --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------|-------------------------------------------------------|---------------------------------------------------|-------------------------- ...

港股公司报告 | 公司点评 思考乐教育 ( 01769 ) 证券研究报告 | --- | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|---------------------------------------------------------------------------------------------------------------| | | | 2024 年 08 月 08 日 | | | 投资评级 | | | 超预期,重启高增 | 行业 | 非必需性消费/支援服 چ | | 公司发布 24H1 正面盈利公告 | 6 个月评级 | 买入（ 维持评级 ） | | | 当 ...