Investment Rating - The investment rating for China Oriental Education (00667) is "Buy" with a 6-month target price of HKD 2.78, representing a potential upside of 57.9% from the current price of HKD 2.33 [1]. Core Insights - The company reported a revenue of RMB 1.983 billion for H1 2024, a year-on-year increase of 1.6%, and a net profit of RMB 272 million, reflecting a significant year-on-year growth of 33.2% [1][2]. - The gross margin for H1 2024 improved to 53.0%, up by 1.9 percentage points, attributed to increased revenue and reduced costs due to effective cost control measures [2]. - The company has adjusted its profit forecasts for FY24-26, expecting revenues of RMB 4.2 billion, RMB 4.5 billion, and RMB 4.9 billion respectively, with adjusted net profits of RMB 430 million, RMB 470 million, and RMB 510 million [3]. Revenue Breakdown - By brand, New Oriental and Meiwai Academy generated RMB 919 million (46.3% of total revenue, down 2.4 percentage points year-on-year), Oumaiqi contributed RMB 159 million (8.0%, down 0.2 percentage points), and Wan Tong generated RMB 449 million (22.6%, up 1.9 percentage points) [1]. - The number of training sessions and new customer registrations decreased by 7.7% year-on-year, totaling 78,000 for H1 2024 [1]. Financial Metrics - The company’s total cash and cash equivalents amounted to RMB 2.645 billion, with a net asset value of RMB 5.496 billion, resulting in a price-to-book (PB) ratio of 0.9 [1]. - The average training sessions for long-term courses decreased by 2.3% year-on-year, while short-term courses saw a 3.5% increase [2]. Cost Management - The sales, management, and financial expense ratios for H1 2024 were 23.4%, 12.9%, and 3.1% respectively, showing a decrease in all categories compared to the previous year [2].
中国东方教育：业绩兑现分红延续，关注股息属性