Kaiwen Education(SZ:002659) Tianfeng Securities·2024-09-01 10:05Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next six months [5][12]. Core Insights - The company reported a revenue of 0.8 million in Q2 2024, representing a year-on-year increase of 25.8%. The net profit attributable to the parent company was -0.06 million, with a growth of 33.6% year-on-year. For the first half of 2024, the total revenue reached 1.5 million, up 18.9% year-on-year, while the net profit attributable to the parent company was -0.1 million, reflecting a significant increase of 51.0% year-on-year [1][2]. - The company has achieved impressive academic results, with a 100% admission rate to the Top 50 US universities and a 71% admission rate to the Top 5 UK universities for the 2024 academic year. This success enhances the company's reputation and recognition both domestically and internationally [1][4]. - The company is expanding its domestic high school offerings, with new programs launched to meet diverse educational needs, including a boutique quality high school class at Chaoyang Kevin School, which started in the fall of 2023 [1][4]. Financial Performance - For the first half of 2024, the education services business generated revenue of 1.2 million, a year-on-year increase of 30.7%, accounting for 77.0% of total revenue. In contrast, the training business saw a revenue decline of 9.2%, contributing 21.6% to total revenue [3]. - The gross profit margin for the first half of 2024 was 27.8%, an increase of 5.7 percentage points year-on-year. The gross margin for the education services business was 35.4%, up 7.4 percentage points, while the training business gross margin decreased by 2.9 percentage points to 6.8% [1][3]. - The company forecasts a net profit attributable to the parent company of 0.06 million, 0.3 million, and 0.7 million for the years 2024 to 2026, with corresponding P/E ratios of 369X, 73X, and 32X [2][8].