Investment Rating - The report maintains a "Recommended" rating for the company [2] Core Insights - The company reported a revenue of 1.63 billion CNY for the first half of 2024, a year-on-year decrease of 3.1%, while net profit increased by 240.9% to 278 million CNY [1] - Adjusted net profit reached 349 million CNY, reflecting a year-on-year growth of 21.2% [1] - The company is the largest recruitment training institution in China, with a unique online gene [1] - Despite a decrease in industry concentration, the company continues to focus on high-quality teaching services, leading to improved profit margins [1] Revenue Breakdown - The revenue from training services and book sales was 1.379 billion CNY and 252 million CNY, respectively, both down by 3.1% and 3.0% year-on-year [1] - Training services account for 75% of total revenue, with small class courses generating 1.026 billion CNY, representing 63% of total revenue [1] - The company expects an increase in enrollment due to current employment trends, although the decrease in industry concentration may pressure customer pricing [1] Profitability Metrics - The gross margin improved to 54.2%, up 3.3 percentage points year-on-year, with training services and book sales gross margins at 57.9% and 33.6%, respectively [1] - Adjusted net profit margin reached 21.4%, a year-on-year increase of 4.3 percentage points, marking a new high since the company went public [1] Share Buyback Activity - The company repurchased shares worth approximately 154 million HKD, canceling 35.87 million shares, reflecting confidence in long-term business prospects [1] - The total share capital is now approximately 2.239 billion shares [1] Future Profit Projections - The company forecasts net profit attributable to shareholders of 452 million CNY, 478 million CNY, and 519 million CNY for 2024, 2025, and 2026, respectively [1] - Adjusted net profit projections are 553 million CNY, 578 million CNY, and 619 million CNY for the same years [1] - The current stock price corresponds to a price-to-earnings ratio of 11, 11, and 10 times for 2024, 2025, and 2026, respectively [1]
粉笔：2024年中报点评：收入微降、利润率提升，积极回购