Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Views - The company reported a revenue of 1.983 billion yuan for the first half of 2024, representing a year-over-year increase of 1.6%. The net profit attributable to the parent company was 272 million yuan, up 33.2% year-over-year, while the adjusted net profit reached 278 million yuan, reflecting a 57.9% increase year-over-year [2]. - The optimization of the school structure has shown significant effects, leading to a notable improvement in cost and expense ratios. The number of schools decreased to 234, down by 11 compared to the previous year, indicating ongoing structural optimization efforts [2]. - The company has effectively controlled sales expenses, resulting in a significant optimization of expense ratios. The operating cost for the first half of 2024 was 932 million yuan, a decrease of 2.45% year-over-year [2]. - The culinary business has seen an improvement in gross margin, while the automotive repair segment has shown steady growth. The beauty industry has achieved high growth with enhanced profitability [2]. - The company anticipates continued profit release driven by school structure optimization over the next two years, alongside accelerated regional center construction to enhance management scale and achieve economies of scale [2]. Financial Forecasts - The company expects net profits attributable to the parent company for 2024, 2025, and 2026 to be 409 million yuan, 627 million yuan, and 822 million yuan, respectively, with corresponding P/E ratios of 12x, 8x, and 6x [3][9]. - The projected revenue growth rates for the next few years are 4.2%, 5.7%, 12.2%, and 11.4% for 2023, 2024, 2025, and 2026, respectively [3][9]. - The gross margin is expected to improve from 47.96% in 2023 to 53.25% by 2026, indicating a positive trend in profitability [9].
中国东方教育：2024年半年报点评：调结构、费用管控效果显著，时尚美业增长靓丽