Investment Rating - The investment rating for the company is "Outperform the Market" [4]. Core Views - The company has successfully adapted to the new regulatory environment post "Double Reduction" policy, showing significant transformation results. In FY2024, the company achieved revenue of 381 million, a 47% increase, indicating a recovery to 98% of FY2021 levels [1][11]. - The company is transitioning from K9 academic training to new educational business models, including competency training and smart learning systems, while maintaining its high school and adult education services [1][2]. - The education industry is experiencing a supply clearance with strong demand resilience, leading to a concentration trend among leading institutions [1][2]. Summary by Sections Company Overview - Founded in 1993 by Yu Minhong, the company is a leading education and training institution in China, listed in the US in 2006 and in Hong Kong in 2020. It has diversified its business to include K12 education, study abroad consulting, and adult education [1][11]. Transformation Strategy - The company has ceased K9 academic training and is exploring new business avenues such as competency training, e-commerce, and cultural tourism, leveraging its brand and traffic for diversified monetization [1][2][15]. Industry Analysis - The education sector has seen a significant reduction in supply post "Double Reduction" policy, with a 96% decrease in K9 training institutions. The market is expected to recover to pre-policy levels by 2025, with leading institutions gaining market share [1][2][15]. Growth Outlook - New educational businesses are projected to generate 5.113 billion, 7.893 billion, with Non-GAAP net profits projected at 796 million, and 132-148 billion [2][5].
新东方-S：激荡教培三十载，而今迈步新征程