Investment Rating - The investment rating for the company is "Buy" [4] - The rating has been maintained as "Add" [4] Core Views - The company's operating performance met expectations, with a significant improvement in profitability [1][5] - In 2023, the company achieved a revenue of 3.021 billion yuan, a year-on-year increase of 7.5%, and a net profit attributable to shareholders of 189 million yuan, recovering from a loss of 2.087 billion yuan in 2022 [1][5] - The adjusted net profit for 2023 was 445 million yuan, representing a year-on-year increase of 134.1% [1][5] - The company’s gross profit margin reached a new high of 52.0%, up 3 percentage points, driven by efficiency improvements and AI empowerment [8][9] Financial Performance Summary - Revenue and Profitability: - 2023 revenue: 30.21 billion yuan, +7.5% YoY [1][5] - Adjusted net profit: 4.45 billion yuan, +134.1% YoY [1][5] - Net profit margin: 4.7%, +8 percentage points [1] - Business Segmentation: - Training services revenue: 25.15 billion yuan, +6.8% YoY [1][5] - Book sales revenue: 5.07 billion yuan, +11.0% YoY [1][5] - Cost Management: - Management expense ratio: 16%, -4 percentage points [8] - Sales expense ratio: 22%, +4 percentage points [8] - R&D expense ratio: 8%, +1 percentage point [8] Future Outlook - The company has raised its profit forecast for 2023-2025, expecting adjusted net profits of 5.77 billion yuan and 7.27 billion yuan for 2024 and 2025, respectively [2][9] - The expected growth rates for these years are 33% and 26% [2][9] - The company plans to increase online membership prices by over 30% in January 2024, reflecting confidence in its product competitiveness [1][9]

Investment Rating - The investment rating for the company is "Buy" [1]. Core Insights - The company's performance slightly exceeded expectations, with a revenue of 30.2 billion yuan in 2023, representing a year-on-year increase of 7.5%. The adjusted net profit reached 4.45 billion yuan, a significant increase of 134.1% year-on-year [1]. - The growth in small class training courses continues to drive revenue, with the average monthly active users of the app reaching 9.1 million, a 14.5% increase year-on-year, marking the highest level since 2019 [1]. - Cost optimization and efficiency improvements have enhanced profitability, with the gross margin increasing by 3.4 percentage points to 52.0% in 2023 [1]. Summary by Sections Financial Performance - In 2023, the company achieved a total revenue of 30.2 billion yuan, with a breakdown of 1.3 billion yuan from online learning products, 6.7 billion yuan from large class training, and 16.7 billion yuan from small class training [1]. - The adjusted net profit for 2023 was 4.45 billion yuan, reflecting a year-on-year growth of 134.1%, with an adjusted net profit margin of 14.7% [1][3]. Operational Metrics - The average monthly active users of the company's app reached 9.1 million in 2023, an increase of 14.5% year-on-year, indicating strong user engagement [1]. - The number of operational centers increased to 202, up by 4 centers year-on-year [1]. Cost and Profitability - The company reduced its teaching staff by over 700, resulting in an average income per teacher of 937,000 yuan, a 31.4% increase year-on-year [1]. - The gross margin for training services improved to 55.4%, up by 3.9 percentage points year-on-year, while the gross margin for book sales increased to 34.7%, up by 1.1 percentage points [1]. Future Projections - The company maintains adjusted net profit forecasts of 6.1 billion yuan, 8.1 billion yuan, and 10.2 billion yuan for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings ratios of 15x, 11x, and 9x [1].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - In 2023, the company achieved a net profit turnaround with an adjusted net profit of 444.5 million yuan, reflecting a year-on-year increase of 134.1% [3] - The company's total revenue for 2023 was 3.021 billion yuan, a year-on-year increase of 7.5% [3] - The training business revenue grew steadily, with 2023 training revenue reaching 2.515 billion yuan, up 6.8% year-on-year [3] - The overall gross margin for the company improved to 52.0%, an increase of 3.4 percentage points year-on-year [3] - The company has a strong online business model and is actively developing an OMO (Online-Merge-Offline) model to enhance service flexibility and efficiency [3] Financial Performance Summary - The company reported a total revenue of 3.021 billion yuan in 2023, with a net profit of 188.57 million yuan, marking a significant recovery from a loss of 2.087 billion yuan in 2022 [2][4] - The earnings per share (EPS) for 2023 was 0.08 yuan, with projected EPS of 0.23 yuan for 2024 and 0.40 yuan for 2026 [2][11] - The company’s projected net profit for 2024 is 523.86 million yuan, increasing to 914.89 million yuan by 2026, with corresponding P/E ratios of 17, 13, and 10 for 2024-2026 [4][11] Business Segmentation - The training business segment saw a revenue of 2.515 billion yuan in 2023, with online learning products contributing 126 million yuan and small class training generating 1.665 billion yuan [3] - The book sales segment achieved a revenue of 507 million yuan in 2023, up 11.0% year-on-year, driven by post-pandemic recovery and increased public examination demand [3] Market Position - The company is recognized as a leading training institution in the public examination sector, having established a strong reputation in online training [4] - As of the end of 2023, the company had 202 operational centers and 3,225 full-time instructors, with an average of 9.1 million active users per month, reflecting a year-on-year growth of 15.2% [3]

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 3,021,318 thousand, representing a 7.5% increase from RMB 2,810,429 thousand in 2022[2] - Gross profit for 2023 was RMB 1,569,823 thousand, up 15% from RMB 1,365,705 thousand in 2022[2] - The adjusted net profit for 2023 was RMB 445,130 thousand, compared to an adjusted net loss of RMB 190,134 thousand in 2022[2] - Operating profit for 2023 was RMB 181,014 thousand, a significant increase from RMB 19,143 thousand in 2022[4] - The company reported a net profit of RMB 188,566 thousand for 2023, a recovery from a net loss of RMB 2,088,707 thousand in 2022[5] - The gross profit for the company was RMB 1,569,823 thousand, with a gross margin of approximately 49.4%[15] - The gross profit margin improved to 52.0% in 2023 from 48.6% in 2022, while the net profit margin increased to 6.2% from a loss of 74.3%[89] - Profit before tax was recorded at RMB 205.0 million in 2023, a significant recovery from a loss of RMB 2,045.5 million in 2022[72] - Net profit for the year was RMB 188.6 million in 2023, compared to a net loss of RMB 2,088.7 million in 2022, resulting in a net profit margin of 6.2%[74] User Engagement - Monthly active users increased to 9.1 million in 2023, up from 7.9 million in 2022, reflecting a growth of approximately 15.2%[3] Assets and Liabilities - The total assets as of December 31, 2023, were RMB 2,122,508 thousand, compared to RMB 1,633,450 thousand in 2022, indicating a growth of 30%[6] - The company’s total liabilities increased to RMB 333,501 thousand in 2023, compared to RMB 238,588 thousand in 2022, reflecting a rise of 39.8%[46] - Cash and cash equivalents decreased to RMB 671,530 thousand in 2023 from RMB 1,047,402 thousand in 2022, a decline of approximately 36%[6] Revenue Breakdown - The company reported total revenue of RMB 3,021,318 thousand for the year ended December 31, 2023, with training services contributing RMB 2,514,526 thousand and book sales contributing RMB 506,792 thousand[15] - For the year ended December 31, 2023, total revenue from training services was RMB 2,353,858 thousand, while book sales generated RMB 604,662 thousand, leading to a total revenue of RMB 2,958,520 thousand[16] - Training services revenue rose by 6.8% to RMB 2,514.5 million, driven by strong demand for examination training and effective utilization of online course products[60] - Book sales revenue increased by 11.0% to RMB 506.8 million, attributed to the recovery of logistics and an increase in recruitment applications[60] Expenses - The total expenses for the year ended December 31, 2023, were RMB 2,848,235 thousand, compared to RMB 2,701,767 thousand in 2022, marking an increase of approximately 5.4%[25] - Employee benefit expenses increased to RMB 1,657,185 thousand in 2023 from RMB 1,569,262 thousand in 2022, reflecting a growth of approximately 5.6%[25] - Administrative expenses decreased by 13.3% to RMB 471.5 million, primarily due to reduced listing costs and rental expenses[65] - Sales and marketing expenses increased by 30.4% from RMB 516.8 million in 2022 to RMB 673.9 million in 2023, primarily due to increased performance incentives for sales personnel and higher promotional spending[66] - Research and development expenses increased to RMB 251,354 thousand in 2023, up from RMB 196,592 thousand in 2022, reflecting a focus on innovation[4] Taxation - Current income tax expense for the year ended December 31, 2023, is RMB 18,876,000, an increase from RMB 14,480,000 in 2022[32] - Total income tax expense for 2023 is RMB 16,387,000, down from RMB 43,181,000 in 2022[32] - The effective tax rate for the group is influenced by various tax incentives, with a general corporate income tax rate of 25% in China, and a reduced rate of 15% for certain high-tech enterprises[34] Shareholder Information - The company did not recommend the payment of a final dividend for the year ended December 31, 2023, consistent with the previous year[55] - The company issued a total of 15,668,000 restricted share units to 6,039 employees on January 2, 2024, with a fair value of approximately RMB 64,137,000[55] - The company raised approximately HKD 113.2 million from its global offering, with net proceeds allocated for various strategic initiatives[91] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring high standards of governance[99] - The audit committee, composed of three independent non-executive directors, has reviewed the annual performance for the year ending December 31, 2023, and found it compliant with applicable accounting standards[103] - The independent auditor has confirmed that the financial statements for the year ending December 31, 2023, are consistent with the audited figures[104] Strategic Focus - The company plans to continue investing in artificial intelligence technology to enhance teaching efficiency and learning experiences[58] - The company plans to expand its market presence and enhance product offerings as part of its growth strategy[49]

Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company is expected to achieve a revenue of at least 3 billion CNY in 2023, representing a year-on-year growth of no less than 6.75%. The net profit attributable to the parent company is projected to be at least 166 million CNY, marking a turnaround from loss to profit. Adjusted net profit is expected to be no less than 420 million CNY, with a year-on-year growth of at least 119.32% [1]. - Strong demand for recruitment and examination training is driving steady revenue growth. The number of applicants for national civil service examinations reached 3.033 million in 2024, a year-on-year increase of 16.8%. The company benefits significantly from this trend, with strong growth in user metrics for its app [1][2]. - The company has made significant investments in digitalization, with AI research and development expenditures of approximately 80 to 100 million CNY in FY23. The AI systems developed by the company are leading the industry, enhancing operational efficiency and reducing costs [1][2]. Financial Summary - The company expects to achieve net profits of 420 million CNY, 620 million CNY, and 820 million CNY for the years 2023, 2024, and 2025, respectively, with growth rates of 120.3%, 46.9%, and 31.7% [2][3]. - The projected P/E ratios for the years 2023, 2024, and 2025 are 23.9, 16.3, and 12.4, respectively [2][3]. - The company’s revenue for 2023 is expected to be around 3.07 billion CNY, with a growth rate of 9.2% year-on-year [3][11].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company is a leading player in China's civil service examination training sector, with strong demand driving impressive performance. It has transitioned to an OMO (Online-Merge-Offline) model, enhancing its growth potential [3][4]. - The civil service examination training market is expected to reach a scale of 430 billion yuan in 2024, with the company poised to increase its market share through its online business advantages and differentiated competition strategies [3][4]. - The company anticipates achieving revenues of at least 3 billion yuan and an adjusted net profit of 420 million yuan in 2023, reflecting growth rates of no less than 6.8% and 119%, respectively [3][4]. Summary by Sections 1. Online Civil Service Training Leader, Strong Industry Demand - The company has established itself as a leader in the civil service examination training sector, primarily offering examination training and book sales. It has built a solid reputation through its online courses and has seen a significant recovery in offline operations since 2023 [3][12]. - The number of applicants for national civil service examinations has exceeded 3 million in 2024, indicating a growing preference for stable government jobs among graduates facing employment pressures [3][24]. 2. Employment Pressure and High Industry Prosperity - The increasing number of graduates and the rising unemployment rate among young people have intensified competition for civil service positions, driving demand for training services [24][26]. - The report highlights that the national civil service examination has seen a continuous increase in applicants over the past five years, with a record number of positions and applicants expected in 2024 [29][31]. 3. Online Training and OMO Model Synergy - The company's online training remains a core strength, with significant contributions from both online and offline training services. The OMO model has allowed for optimal resource allocation and improved operational efficiency [3][4][19]. - The average revenue per paid user for online training increased by 23.6% year-on-year in the first half of 2022, showcasing the effectiveness of its online offerings [3]. 4. Profitability Forecast - The company is projected to achieve adjusted net profits of 230 million yuan, 376.9 million yuan, and 570.28 million yuan for 2023, 2024, and 2025, respectively, with year-on-year growth rates of 111%, 63.54%, and 51% [2][4]. - The report indicates that the company has successfully improved its profitability through cost reduction and efficiency enhancement strategies, with a significant recovery in adjusted net profit observed in 2023 [19][21].

Investment Rating - The investment rating for the company is "Buy" with a target price of 6 HKD, maintaining the rating from previous assessments [1]. Core Views - The company is expected to achieve a revenue of no less than 3 billion RMB in 2023, with a revised net profit of 420 million RMB, representing a year-on-year increase of 119% [1]. - The growth in performance is attributed to strong demand for recruitment training in 2023, enhanced by online small classes and a blended learning model, which has improved customer pricing and brand reputation [1]. - The company is projected to have revenues of 4.08 billion RMB, 4.92 billion RMB, and 5.89 billion RMB for the years 2024 to 2026, with adjusted net profits of 600 million RMB, 720 million RMB, and 860 million RMB respectively [2]. Summary by Sections Financial Performance - The company’s revenue for 2023 is projected to be at least 3 billion RMB, with a net profit of 420 million RMB, marking a 119% increase year-on-year [1]. - The expected earnings per share (EPS) for 2024, 2025, and 2026 are 0.26 RMB, 0.31 RMB, and 0.38 RMB respectively, with price-to-earnings (PE) ratios of 19X, 16X, and 13X [2]. Market Position and Strategy - The company is positioned to benefit from the rational return of competition in the public recruitment training sector, with an anticipated increase in the number of recruits in 2024 by approximately 240,000, a 5.4% year-on-year increase [1]. - The company has made significant advancements in artificial intelligence, with proprietary systems for intelligent grading and interview feedback, enhancing operational efficiency [1]. Operational Efficiency - The company has optimized its cost structure and improved operational efficiency, maintaining stable expenses while enhancing gross profit margins and net profit margins [1]. - The integration of online and offline teaching methods has led to improved teaching quality and reduced reliance on physical teaching spaces [1]. Future Outlook - The company plans to continue enhancing its teaching staff and course content while increasing research and development investments to seize structural opportunities and expand its technological advantages [1].

Investment Rating - The investment rating for the company is "Accumulate" [3][8] Core Views - The company is expected to achieve an adjusted net profit exceeding 420 million yuan in 2023, showing significant improvement in profitability compared to a loss of 2.087 billion yuan in the previous year. Revenue is projected to exceed 3 billion yuan, reflecting a year-on-year increase of over 6.7% [1][2] - The company has solidified its advantages in online course products and is enhancing its profitability through an OMO (Online-Merge-Offline) teaching model, which has led to a notable increase in the average revenue per student [1] - The company has increased its investment in AI technology from 40 million yuan to between 80 million and 100 million yuan, with AI features already implemented to assist daily operations [1] - The competitive landscape for civil service examinations remains intense, with an average admission ratio exceeding 60:1 in many regions, which is expected to boost candidates' willingness to participate in training [1] - The company has raised the prices of its membership products by over 30% starting January 12, 2024, indicating confidence in demand despite the price increase [1] Financial Forecasts and Metrics - For 2023, the company is expected to achieve revenue of over 3.077 billion yuan, with a year-on-year growth of 9.5%. The adjusted net profit is projected to be 421 million yuan, reflecting a growth rate of 120.2% [2][6] - The earnings per share (EPS) for 2023 is estimated at 0.18 yuan, with corresponding price-to-earnings (PE) ratios of 25, 19, and 15 for 2023, 2024, and 2025 respectively [2][6] - The company's EBIT margin is expected to improve to 14.2% in 2023, up from 12.8% in 2022, indicating enhanced operational efficiency [2][6] - The net asset return (ROE) is projected to be -4.0% in 2023, with a gradual improvement expected in subsequent years [2][6]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company is expected to achieve a revenue of at least 3.0 billion yuan in 2023, representing a year-on-year increase of 6.7%, and an adjusted net profit of at least 420 million yuan, reflecting a significant year-on-year increase of 119.3% [2][4] - The strong demand for recruitment-related examinations is driving the company's performance growth, with a notable increase in the number of applicants for civil service exams, which is expected to enhance training willingness and participation rates [2][4] - The company's profitability has significantly improved due to cost optimization and efficiency enhancements, with gross profit margin expected to rise to 52% in 2023, up from 49% in 2022 [3][4] Financial Summary - Total revenue (in million yuan): - 2021: 2,132 - 2022: 2,810 - 2023E: 3,057 - 2024E: 3,852 - 2025E: 4,726 - Year-on-year growth rates: 2023E: 8.8%, 2024E: 26.0%, 2025E: 22.7% [3][6] - Adjusted net profit (in million yuan): - 2021: -2,046 - 2022: -2,087 - 2023E: 436 - 2024E: 606 - 2025E: 854 - Year-on-year growth rates: 2023E: 120.9%, 2024E: 39.0%, 2025E: 40.9% [3][6] - Gross profit margin is projected to improve to 52% in 2023, with an adjusted net profit margin increasing to 14% [3][4] Investment Recommendations - The company is positioned as a leader in online recruitment examination training in China, with strong teaching products and services, and is expected to capture a larger market share [4] - The adjusted net profit forecasts for 2023-2025 are 440 million yuan, 610 million yuan, and 850 million yuan respectively, with current price-to-earnings ratios of 24x, 17x, and 12x [4]

股 票 研 究 [Table_industryInfo] 教育产业 [ Table_Main[粉I Tnaf 笔bol]e （_Ti 2tl 4e] 6 9） [评Tab级le_：Inv est] 增持 当前价格（港元）： 4.99 成本结构持续优化，业绩预告超预期 2024.02.27 海 ——粉笔 2023年报业绩预告点评 [ 交Ta易bl数e_M据a rket] 外 刘越男(分析师) 苏颖(分析师) 52周内股价区间（港元） 3.18-13.30 当前股本（百万股） 2,289 公 021-38677706 021-38038344 当前市值（百万港元） 11,423 司 liuyuenan@gtjas.com suying@gtjas.com 证书编号 S0880516030003 S0880522110001 （ [ Table_PicQuote] 中 本报告导读： 52周内股价走势图 国 受益成本结构持续优化，2023年业绩预告超预期；公司线上深耕运营转化，精品小班 粉笔 恒生指数 香 模型跑通，运营提效盈利改善，OMO协同成长可期。 7% 摘要： 港 -10% [T abl业e_S绩um超m预 ...