XUEDA(SZ:000526) Tianfeng Securities·2024-07-11 00:00Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [5][27]. Core Views - The company is expected to see a significant increase in net profit for the first half of 2024, with estimates ranging from 130 to 190 million yuan, representing a year-on-year growth of 46% to 108% [1]. - The growth in the number of high school graduates, reaching a historical high of 13.42 million in 2024, is anticipated to benefit the company's high school and full-time training businesses [2][3]. - The company is accelerating its debt repayment, having repaid 215 million yuan by early May 2024, which is expected to alleviate financial burdens and enhance performance [7]. Financial Performance - The company forecasts a net profit of 80 to 130 million yuan for Q2 2024, with a midpoint estimate of 100 million yuan, indicating a 25% increase year-on-year [5][15]. - Revenue projections for 2024 to 2026 are adjusted to 2.9 billion, 3.7 billion, and 4.3 billion yuan respectively, with net profits expected to be 260 million, 350 million, and 440 million yuan [16]. - The company's earnings per share (EPS) are projected to be 2.11, 2.84, and 3.58 yuan for 2024, 2025, and 2026 respectively [16]. Market Dynamics - The high school education market is experiencing a favorable shift, with strong demand benefiting established institutions, particularly leading brands [17]. - The company is focusing on enhancing its operational efficiency and cost management to sustain growth in its personalized education segment [15][16].