Summary of Conference Call Industry Overview - The discussion revolves around the education sector and the training industry, highlighting recent trends and developments in these areas [1] Core Insights and Arguments - The company has been actively engaging with stakeholders regarding the dynamics within the education and training sectors, indicating a focus on understanding market shifts and consumer behavior [1] Other Important Content - No additional significant details or numerical data were provided in the excerpt [1]

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company has successfully transitioned to quality education, which is expected to support revenue growth. In 2024, it achieved a revenue of 1.1 billion HKD, representing a year-on-year increase of 125.2%. The net profit attributable to the parent company was 190 million HKD, up 110.9% year-on-year [4][6]. - The company's contract liabilities at the end of 2024 were 600 million HKD, a year-on-year increase of 184.3%, which is anticipated to support revenue growth in 2025. The introduction of AI products is expected to enhance efficiency for both teachers and students [7]. Summary by Sections Financial Performance - In 2024, the company generated revenue of 1.1 billion HKD, with segments of quality education, full-time review, and tutoring contributing 710 million, 210 million, and 180 million HKD respectively, showing year-on-year growth rates of 411.7%, 1%, and 25.2% [6]. - The net profit for 2024 was 190 million HKD, with a lower growth rate compared to revenue due to adjustments in revenue structure leading to a decline in gross margin and an increase in sales and management expense ratios [6]. Future Projections - The company is projected to achieve revenues of 2.02 billion, 2.28 billion, and 2.54 billion HKD for the years 2025, 2026, and 2027 respectively, with corresponding net profits of 320 million, 380 million, and 420 million HKD [7][8]. - The expected price-to-earnings ratios for 2025, 2026, and 2027 are 9x, 8x, and 7x respectively, indicating a favorable valuation outlook [7][8]. Market Position - The company is recognized as a leader in K12 education in South China, successfully expanding its market presence in Guangzhou, Shenzhen, and Foshan. The increasing demand for education in the Greater Bay Area is expected to enhance its competitive position [7].

港股公司报告 | 公司点评 卓越教育集团（03978） 证券研究报告 稳扎稳打持续突破 素质转型成果显现，AI 助力提质增效 公司收入 11.02 亿，同增 125.2%；净利 1.92 亿，同增 114%，核心业务表 现亮眼，素质转型成果显著，AI 技术赋能教育场景。 2024 年卓越在素质教育领域实现历史性突破，收入 7.1 亿，占总收入 64.7%， 同比增长 411.7%，成为收入增长核心动力。辅导项目收入稳步增长 25.2% 至 1.81 亿元；全日制复读业务收入微增 1%至 2.1 亿元，市占率提升。 全年毛利率 46.3%，银行存款余额 11.2 亿，同比增长 124%，合约负债 6 亿元，同比增长 184%。财务指标的强劲，说明家长素质教育消费的需求持 续增长，为公司未来发展提供坚实保障。 AI 技术全面赋能，教学效率提升 公司坚定推进"All in AI"战略，对迭代多年的"鲸准教系统"进行 AI 升级， 构建"千人千面"学习路径，精准预测学生薄弱环节，针对性提升成绩； 其中，作文智能批改系统已成功落地，并在初中阶段稳定应用，大幅提高 了教师的批改效率。 青椒 AI 助教已经上线，大幅提升老 ...

Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [4]. Core Insights - The company achieved a revenue of 1.102 billion, representing a year-on-year increase of 125.2%, and a net profit of 192 million, up 114%, indicating strong performance in its core business and significant results from its quality transformation [1]. - In 2024, the company made a historic breakthrough in the quality education sector, generating 710 million in revenue, which accounted for 64.7% of total revenue and showed a remarkable growth of 411.7% year-on-year [1]. - The company is advancing its "All in AI" strategy, enhancing its educational systems with AI technology to improve teaching efficiency and personalize learning paths for students [2][3]. Financial Performance - The company reported a gross profit margin of 46.3% and a bank deposit balance of 1.12 billion, which is a 124% increase year-on-year. Contract liabilities reached 600 million, up 184% year-on-year, reflecting strong demand for quality education services [1]. - The adjusted profit forecasts for 2025-2027 are 3.14 billion, 3.97 billion, and 5.06 billion respectively, with earnings per share (EPS) projected at 0.37, 0.47, and 0.6 [4].

Financial Performance - Total revenue for the year ended December 31, 2024, reached RMB 1,102,001 thousand, representing a 125.2% increase compared to RMB 489,314 thousand in 2023[3] - Gross profit for the same period was RMB 510,118 thousand, up 121.9% from RMB 229,858 thousand in 2023[3] - Net profit increased to RMB 192,339 thousand, a growth of 114.0% from RMB 89,880 thousand in the previous year[3] - Adjusted net profit for 2024 was RMB 192,787 thousand, reflecting a 116.1% increase from RMB 89,225 thousand in 2023[3] - Basic earnings per share for 2024 were RMB 25.61 cents, compared to RMB 12.12 cents in 2023[5] - The company reported a net profit of RMB 192,451,000 for the year ending December 31, 2024, compared to RMB 91,246,000 for the previous year, representing an increase of 111.1%[44] - Basic earnings per share for 2024 were RMB 0.2561, up from RMB 0.1212 in 2023, reflecting a growth of 111.6%[44] - Adjusted net profit increased by 116.1% from approximately RMB 89.2 million in 2023 to approximately RMB 192.8 million in the reporting period[100] Assets and Liabilities - Non-current assets totaled RMB 956,696 thousand as of December 31, 2024, compared to RMB 534,264 thousand in 2023[6] - Current assets increased to RMB 880,712 thousand in 2024, up from RMB 512,112 thousand in 2023[6] - Total liabilities for 2024 were RMB 968,752 thousand, significantly higher than RMB 410,948 thousand in 2023[8] - Net assets rose to RMB 653,709 thousand in 2024, compared to RMB 496,435 thousand in the previous year[8] - The company reported a significant increase in cash and cash equivalents, reaching RMB 512,011 thousand in 2024, up from RMB 281,928 thousand in 2023[6] - As of December 31, 2024, the group recorded net current liabilities of RMB 88,040,000, compared to net current assets of RMB 101,164,000 in 2023[11] - The current ratio decreased to approximately 0.91 from 1.25 in 2023, primarily due to an increase in contract liabilities[106] - The leverage ratio increased to 0.64 from 0.53 in 2023[106] Revenue Breakdown - Revenue from quality education surged to RMB 713,434 thousand in 2024, compared to RMB 139,412 thousand in 2023, marking an increase of about 411.5%[32] - The revenue from tutoring projects increased to RMB 181,443 thousand in 2024, up from RMB 144,918 thousand in 2023, reflecting a growth of approximately 25.1%[32] - The revenue recognition for services transferred over time amounted to RMB 1,101,638 thousand for the year ending December 31, 2024, demonstrating the company's effective service delivery model[23] - The company reported that 99% of its total revenue is generated from subsidiaries located in mainland China, indicating a strong regional focus[33] Expenses and Costs - The total employee costs for the year were RMB 519,625,000, significantly higher than RMB 177,150,000 in 2023, indicating a growth of 194.4%[41] - Selling expenses rose to approximately RMB 76.0 million, a 191.4% increase from RMB 26.1 million in 2023, mainly due to higher recruitment costs associated with business expansion[89] - Administrative expenses increased to approximately RMB 140.3 million, up 142.3% from RMB 57.9 million in 2023, driven by higher salaries and office costs due to business growth[90] - The company recognized impairment losses of RMB 7,411,000 for the year 2024, compared to RMB 5,526,000 in 2023, marking an increase of 34.2%[36] - The deferred tax expense for 2024 was RMB 4,372,000, compared to RMB 663,000 in 2023, showing a significant increase[36] - The company’s income tax expense for 2024 was RMB 56,134,000, compared to RMB 22,881,000 in 2023, representing an increase of 145.5%[36] Corporate Governance and Compliance - The company has adopted the corporate governance code and has complied with the relevant provisions during the reporting period, except for the separation of the roles of Chairman and CEO[124] - Following the appointment of Mr. Shen Haipeng as an independent non-executive director on October 16, 2024, the company has regained compliance with the listing rules regarding the composition of the board[127] - The audit committee, which includes Mr. Gan Jun as chairman, has reviewed the consolidated financial statements and confirmed compliance with applicable accounting standards and requirements[132] Shareholder and Dividend Information - The company plans to distribute a dividend of RMB 0.114 per share for the fiscal years 2024, 2025, and 2026, totaling RMB 96,226,000, subject to shareholder approval[42] - The board has proposed a final dividend of HKD 12.3 cents per share for the year ending December 31, 2024, representing 50.0% of the annual profit and total comprehensive income, totaling approximately RMB 96.2 million[119] - The company announced a final dividend of HKD 0.035 per share for the year ending December 31, 2023, which was approved by shareholders[71] Strategic Initiatives and Market Position - The company has maintained a strong market position in the education technology sector, recognized for its "Excellent Education" brand and various awards in 2024, enhancing its reputation and attracting more students[55] - The company has embraced technology and artificial intelligence to improve product quality and service delivery, aiming for a transformation towards high-quality development[53] - The company is actively implementing an RSU plan for core management and technical personnel to align long-term development with employee interests, aiming to boost operational efficiency and profitability[69] - The company is focusing on AI applications in education, planning to launch personalized recommendations based on AI data analysis and capability modeling[76] - The company has successfully transformed multiple products under the guidance of education authorities, achieving recognition for its compliance and quality in education services[72] - The company has engaged in various community support activities, including donations to schools and mental health services, demonstrating its commitment to social responsibility[74] Employee and Internal Relations - The total number of employees increased to 3,072 as of December 31, 2024, up from 846 in 2023[118] - The company has established multiple communication mechanisms to enhance employee engagement and promote a harmonious internal environment[68] - The company has been recognized for its outstanding employer brand, receiving several accolades for its talent strategy and AI application[69] - The company is committed to continuous improvement in teaching quality through competitions and training programs for its educators[68] Future Outlook and Compliance with IFRS - The group has adopted revised International Financial Reporting Standards (IFRS) effective from January 1, 2024, which include clarifications on classifying liabilities as current or non-current[14] - The application of the revised IFRS did not have a significant impact on the group's financial position or performance for the current and prior years[14] - The company is currently evaluating the detailed impact of the new International Financial Reporting Standards (IFRS) on its consolidated financial statements, which are expected to affect the presentation of the income statement and future disclosures[21] - The company anticipates that the application of the new IFRS will influence the presentation of the income statement and future financial statement disclosures starting from January 1, 2027[21]

港股公司报告 | 公司点评 卓越教育集团（03978） 证券研究报告 业绩盈喜，教培景气延续 公司发布 2024 年度盈利预告 预计 2024 年收入 10.5~11.5 亿元，同比增长 114.5%~135%，净利润 1.8~2.0 亿元，同比增长 100.3%~122.5%。 2024 年度公司素质化转型取得卓越成效，相关产品深受家长及学生的认 可，招生人次、辅导课时较 2023 年同期有较大幅度的增长。同时，公司积 极推广人工智能技术在业务及管理层面的应用，不仅提升产品及服务质量， 经营管理效率也得到较大的提升。 全面接入 Deepseek R1 公司将持续探索 AI+教育的落地场景，充分发挥线下教育的独特优势，不 断提升教育质量和服务水平。 2025 年 2 月 14 号，卓越教育鲸准教"青椒助教"应用全面升级，接入 Deepseek R1。升级后的"青椒助教"在逻辑性、内容精准度等方面表现出 色，无论是解析综合题型还是创新教学策略，都能游刃有余。 同时，公司将进一步深化 AI 技术在教学中的应用，通过"青椒助教"等 一系列工具，为老师提供更强大的教学支持，帮助学生更好地学习和成长。 同时，用 Ai ...

港股公司报告 | 公司点评 卓越教育集团（03978） 证券研究报告 业绩盈喜，教培景气延续 公司发布 2024 年度盈利预告 预计 2024 年收入 10.5~11.5 亿元，同比增长 114.5%~135%，净利润 1.8~2.0 亿元，同比增长 100.3%~122.5%。 2024 年度公司素质化转型取得卓越成效，相关产品深受家长及学生的认 可，招生人次、辅导课时较 2023 年同期有较大幅度的增长。同时，公司积 极推广人工智能技术在业务及管理层面的应用，不仅提升产品及服务质量， 经营管理效率也得到较大的提升。 全面接入 Deepseek R1 公司将持续探索 AI+教育的落地场景，充分发挥线下教育的独特优势，不 断提升教育质量和服务水平。 2025 年 2 月 14 号，卓越教育鲸准教"青椒助教"应用全面升级，接入 Deepseek R1。升级后的"青椒助教"在逻辑性、内容精准度等方面表现出 色，无论是解析综合题型还是创新教学策略，都能游刃有余。 同时，公司将进一步深化 AI 技术在教学中的应用，通过"青椒助教"等 一系列工具，为老师提供更强大的教学支持，帮助学生更好地学习和成长。 同时，用 Ai ...

港股公司报告 | 公司点评 卓越教育集团（03978） 证券研究报告 "青椒助教"全面升级，接入 Deepseek R1 卓越教育鲸准教"青椒助教"应用全面升级，接入 Deepseek R1 升级后的"青椒助教"在逻辑性、内容精准度等方面表现出色，无论是解 析综合题型还是创新教学策略，都能游刃有余。它实现教学场景的全覆盖， 从撰写反馈、教案到设计教学活动、分析学生学习情况，大幅提升备课效 率。目前，语文、英语、数学等 Ai 赋能的产品正在开发中，开发成熟后将 陆续落地推出。 随着卓越教育"青椒助教"等 AI 产品的上线，老师们的备课效率与教学质 量将大幅提升。老师们有更多时间关注学生的身心健康与发展，及时调整 教学策略，实现个性化教学的动态优化。 教育的本质不仅仅是知识的传授，更是一种情感的交流和人格的塑造。在 线下实际教育场景中，老师们通过眼神、表情、肢体语言等传递情感，给 予学生鼓励、安慰和关怀。这种情感互动对于 K12 学生的学习动力和心理 健康至关重要。 老师们有更多时间研究课堂的呈现形式，为学生提供丰富的实践机会和真 实的学习体验。如物理课化学课的启蒙实验，都能够激发学生的学习兴趣 和创造力，提高他 ...

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Insights - The upgraded "Qingjiao Assistant" application integrates Deepseek R1, significantly enhancing lesson preparation efficiency and teaching quality, allowing teachers to focus more on students' emotional and developmental needs [1][2] - The company is committed to exploring AI applications in education, leveraging offline education's unique advantages to improve service quality and operational efficiency [3] - The introduction of AI tools is expected to create a competitive advantage for leading institutions while posing challenges for smaller entities, potentially reshaping the educational landscape [3] Financial Projections - Revenue forecasts for 2024, 2025, and 2026 are projected at 880 million RMB, 1.53 billion RMB, and 1.83 billion RMB respectively, with adjusted net profits of 180 million RMB, 280 million RMB, and 340 million RMB [4] - Earnings per share (EPS) are expected to be 0.21 RMB, 0.33 RMB, and 0.40 RMB for the same years, corresponding to price-to-earnings (PE) ratios of 17x, 11x, and 9x [4] - The current stock price is 3.53 HKD, with a total market capitalization of approximately 2.99 billion HKD [4]