Group 1 - The core viewpoint of the article highlights that Zhongjiao Holdings reported FY25 revenue of 7.363 billion yuan, an increase of 11.9% year-on-year, and a net profit of 506 million yuan, up 0.8% year-on-year, aligning with performance forecasts [1] - The company is transitioning from external expansion to a new phase focused on internal growth and value enhancement, indicating a stable long-term profitability outlook [1] - The company’s domestic revenue grew by 11.8% year-on-year, while international revenue increased by 14.8%, continuing the trend of simultaneous volume and price growth [1] Group 2 - The total number of full-time students reached 282,000, a year-on-year increase of approximately 5%, with the higher education segment being a key stabilizer, showing a 9% growth in student enrollment [1] - Capital expenditures were optimized to 2.66 billion yuan, a nearly 45% decrease year-on-year, marking a shift towards a more cash flow-focused growth period [1] - The company maintained an industry-leading gross margin of 53.32%, despite a year-on-year decline of about 2 percentage points due to increased investments in faculty and teaching quality [1] Group 3 - The net profit for FY25 was 506 million yuan, with a slight increase attributed to a one-time impairment of goodwill and intangible assets amounting to approximately 1.706 billion yuan (after tax 1.675 billion yuan) [1] - Excluding this impact, EBITDA still achieved a year-on-year growth of 10.5%, indicating underlying operational strength [1] - The domestic corporate income tax significantly increased to 320 million yuan year-on-year, reflecting proactive optimization of the group structure [1] Group 4 - The Guangdong Provincial Education Department released a draft document on November 5 regarding the classification management reform for private colleges, which may support sentiment and valuation recovery for Zhongjiao Holdings if it successfully completes the profit-oriented registration [2] - Adjusted net profit estimates for FY26-28 are projected at 2.037 billion, 2.137 billion, and 2.175 billion yuan respectively, reflecting an increase from previous estimates [2] - The target price is set at 3.68 HKD, with a maintained "buy" rating, based on the assumption of a 40% dividend payout ratio starting in FY27 [2]
中教控股(0839.HK)：迈入稳健内生增长新时期