Ge Long Hui A P P·2025-11-11 06:57Core Insights - Kevin Education achieved a net profit attributable to shareholders of 960,000 in the first three quarters, compared to a loss of 22.19 million in the same period last year, marking a turnaround [1] - In Q3, the net profit attributable to shareholders was 221,500, while the net loss in Q3 2024 was 1.23 million, indicating a year-on-year turnaround [1] - Significant improvement in cash flow and a decrease in debt ratio were noted [1] Business Developments - The company announced a joint venture with Zhihua Huazhang and an employee stock ownership platform, establishing Zhiqi Wenhua, in which the company holds a 65% stake [1] - Zhiqi Wenhua focuses on developing and operating AI smart products, providing modern educational support tools and solutions primarily to primary and secondary schools in Haidian District [1] - The company anticipates broader promotion of its products as they mature, with a positive outlook on the continuous growth of student enrollment and the scale effects from its AI business layout [1] Investment Outlook - The company is rated as "Overweight" due to the expected growth in student numbers and the potential scale effects from its AI initiatives [1]