Core Viewpoint - New Higher Education Group (02001) reported a revenue of 2.6 billion yuan for the fiscal year 25, representing a year-on-year growth of 7.8%, with adjusted net profit at 812 million yuan, up 5.2%, aligning with expectations [1] Group 1: Financial Performance - The company adjusted profit forecasts for fiscal years 26 and 27 to 880 million yuan and 1 billion yuan respectively, with a new forecast for fiscal year 28 at 1.14 billion yuan [1] - The target price was raised to 3.38 HKD from the previous 2.99 HKD, maintaining a buy rating [1] Group 2: Student Structure and Revenue - The total number of enrolled students in fiscal year 25 was 139,000, a slight decrease of 0.6% from fiscal year 24, but the structure of students improved with a 4 percentage point increase in the proportion of new undergraduate students [2] - The average tuition fee increased by 8.1% to 16,700 yuan per academic year, while accommodation fees rose by 5.2% to 1,998 yuan per academic year, contributing to the revenue growth [2] Group 3: Cost and Investment - The company's cost of revenue for fiscal year 25 was 1.68 billion yuan, a year-on-year increase of 9.2%, with labor costs at 1.08 billion yuan, up 14.7% [3] - The company is investing significantly in educational infrastructure, with depreciation and amortization costs rising by 10.8% to 260 million yuan [3] Group 4: Future Outlook - Capital expenditures peaked at 920 million yuan in fiscal year 24 but decreased to 690 million yuan in fiscal year 25, with expectations of further declines as schools pass teaching evaluations [4] - The company anticipates an improvement in operational efficiency and a potential rebound in profit margins starting from fiscal year 26, as the period of rapid cost growth is expected to end [4]