Investment Rating - The investment rating for the company is "Outperform the Market" [2][6]. Core Insights - The company reported a revenue of 1.63 billion RMB for 1H24, a decrease of 3.1% year-on-year, while adjusted net profit increased by 21% to 349 million RMB, with an adjusted net profit margin of 21.4% [3][4][6]. - The product matrix has been enhanced, integrating online and offline advantages, with total training service revenue at 1.38 billion RMB, a decline of 3.1% [3][4]. - The average monthly active users of the company's app reached 9.2 million, showing no growth [3][6]. Financial Performance Summary - Revenue for 1H24 was 1.63 billion RMB, with a gross profit of 883 million RMB and a gross margin of 54.2%, up 3.3 percentage points year-on-year [4][6]. - The breakdown of revenue includes online learning products at approximately 65 million RMB, large class training at 266 million RMB, small class training at 1.03 billion RMB, and other training courses at 23 million RMB [4][6]. - The company expects revenue growth of 2.7% in 2024, with adjusted net profit projected to grow by 24% [6][8]. Cost and Efficiency - The company has optimized employee efficiency, with a total of 3,145 full-time instructors, a decrease of 80, and an average revenue per employee of 216,000 RMB, down 8% [3][6]. - Sales expenses increased by 5.3% to 320 million RMB, while management expenses decreased by 38.3% to 198 million RMB [6][8]. Valuation and Market Comparison - The company is valued using a PE method, with a target PE range of 15-18x for 2024, corresponding to a market value range of 9-10.8 billion HKD, and a reasonable price range of 4.0-4.8 HKD [6][8]. - Compared to peers, the company's PE for 2024 is estimated at 21.52, indicating a competitive valuation [7].
粉笔：公司半年报点评：收入受考试错期影响，利润稳步增长