Investment Rating - Buy rating maintained for the company [2] Core Viewpoints - Revenue decline in H1 2024 primarily due to scheduling conflicts between public institution and civil service exams, impacting enrollment numbers [2] - Net profit increased significantly due to improved gross margin, reduced administrative expenses, and other income gains [2] - Adjusted net profit margin rose to 21.4%, up 4.3 percentage points, driven by reduced management expenses and other income turning positive [3] - AI technology adoption enhanced teaching efficiency, contributing to a 3.3 percentage point increase in gross margin to 54.2% [3] - Contract liabilities grew by 12.7% to 212 million yuan, providing a solid foundation for future education business [3] Business Performance - Training services and book sales revenues decreased by 3% each to 1.379 billion yuan and 252 million yuan respectively in H1 2024 [3] - Small class training (OMO) revenue increased by 8% to 1.026 billion yuan, accounting for 74% of total training revenue [3] - Online learning platform's average monthly active users remained stable at 9.2 million, with a slight increase of 100,000 users quarter-over-quarter [3] Financial Metrics - H1 2024 revenue/net profit/adjusted net profit/operating cash flow were 1.63 billion yuan/278 million yuan/349 million yuan/235 million yuan, with year-over-year changes of +3.10%/+240.90%/+21.20%/-37.46% [2] - Gross margin for training services and book sales improved to 57.9% and 33.6% respectively, up 4.0 and 0.8 percentage points [3] - Adjusted net profit margin increased to 21.4%, up 4.3 percentage points, primarily due to reduced management expenses and other income turning positive [3] Future Outlook - Potential for market share gains, price increases in large class training, and further penetration in small class training [4] - AI technology expected to further enhance teaching and after-class service efficiency, offering significant cost-saving opportunities [4] - Revenue forecasts for 2024-2026 adjusted downward to 3.034 billion yuan/3.323 billion yuan/3.646 billion yuan, with adjusted net profit forecasts revised to 552 million yuan/646 million yuan/740 million yuan [4]
粉笔：收入下滑受考试冲突影响，利润率仍在修复