XUEDA(SZ:000526) Xin Lang Cai Jing·2025-11-02 12:38Core Viewpoint - The company experienced steady revenue growth in Q3, but faced a significant decline in net profit, indicating challenges in profitability despite increased contract liabilities and expansion efforts [1][2][3] Financial Performance - In Q3, the company reported revenue of 697 million, a year-on-year increase of 11.19%, while net profit attributable to shareholders was 1.43 million, down 89.90% year-on-year, with a non-recurring loss of 2.30 million [1] - For the first three quarters, revenue reached 2.613 billion, up 16.30% year-on-year, and net profit attributable to shareholders was 231 million, an increase of 31.52% year-on-year [1] - The company's contract liabilities at the end of the period were 1.204 billion, reflecting a year-on-year growth of 22.45% [1] Business Strategy and Operations - Q3 is characterized as a low season for course consumption but a peak season for enrollment, with a focus on network expansion and customer acquisition [2] - The company’s gross margin in Q3 was 27.17%, a decrease of 5.07 percentage points year-on-year, attributed to increased costs from teacher reserves and business expansion [2] - Sales expense ratio increased by 3.10 percentage points due to upfront marketing investments during the enrollment season, while management expenses decreased significantly, indicating operational efficiency [2] Growth Outlook - The company is positioned as a leader in personalized education, with a clear strategy for business expansion and expectations for sustained revenue growth [3] - Long-term profitability is anticipated to improve towards 10% as front-end business revenue increases and operational costs are diluted through scale effects [3] - Profit forecasts for 2025-2027 project net profits of 245 million, 304 million, and 369 million respectively, with corresponding price-to-earnings ratios of 22, 18, and 15 [3]