XUEDA(SZ:000526) Xin Lang Cai Jing·2025-11-03 10:41Core Viewpoint - The company reported its Q3 2025 results, showing a revenue of 2.61 billion yuan for the first three quarters, a year-on-year increase of 16.3%, and a net profit attributable to shareholders of 230 million yuan, up 31.5% year-on-year. However, Q3 2025 saw a revenue of 697 million yuan, an 11.2% year-on-year increase, but a significant decline in net profit, indicating challenges in maintaining growth momentum [1][2]. Group 1: Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 2.61 billion yuan, reflecting a year-on-year growth of 16.3% [1] - The net profit attributable to shareholders for the same period was 230 million yuan, representing a year-on-year increase of 31.5% [1] - In Q3 2025, the company reported a revenue of 697 million yuan, which is an 11.2% increase year-on-year, but the net profit dropped to 143 thousand yuan, a decline of 89.9% year-on-year [1] Group 2: Operational Insights - The rapid expansion phase of the company's network has ended, leading to a stabilization in revenue growth, with Q3 2025 showing a 3.8 percentage point decrease in growth rate compared to Q2 [1] - The company’s right-of-use assets reached 690 million yuan, a year-on-year increase of 14.1%, but the growth rate significantly slowed from 44.3% in Q2 2025 [1] Group 3: Cost and Profitability - The gross margin for Q3 2025 was 27.2%, down 12.6 percentage points year-on-year, attributed to the seasonal business downturn and increased fixed costs from expansion [2] - The company’s selling, administrative, and R&D expense ratios were 10.0%, 14.0%, and 1.1%, respectively, with selling expenses rising due to increased marketing and investment costs [2] - Excluding stock incentive costs, the adjusted net profit for Q3 2025 was 347 thousand yuan, down 86.0% year-on-year, indicating a significant decline in profitability [2] Group 4: Strategic Initiatives - The company continued its share repurchase program in Q3, buying back 2.4713 million shares for 125 million yuan, reflecting confidence in its development [2] - A total of 60 million yuan from the repurchased shares will be used for cancellation, while the remaining will support stock incentives, enhancing shareholder returns and talent motivation [2] - The company applied for a 1 billion yuan comprehensive credit line for its subsidiary to support business expansion, indicating proactive capital management [2] Group 5: Investment Outlook - As a leader in personalized education focusing on high school segments, the company is expected to benefit from demographic advantages and stable policies, with a recommendation to monitor its market share growth [3] - Projected net profits for 2025-2027 are estimated at 240 million yuan, 280 million yuan, and 310 million yuan, with corresponding price-to-earnings ratios of 23X, 19X, and 17X [3]