XUEDA(SZ:000526) Guohai Securities·2024-09-14 08:00Investment Rating - The report maintains a "Buy" rating for the company [2][7]. Core Insights - The company reported a strong performance in Q2 2024, with revenue of 1.62 billion yuan, a year-over-year increase of 29%, and a net profit of 178 million yuan, reflecting a 100% increase after excluding share-based payment expenses [3][5]. - The company is expanding its vocational education segment through an investment in Yueyang Modern Service Vocational School, aiming to gradually hold 90% of the equity with a transaction price of 214 million yuan [3][6]. - The personalized education business is recovering rapidly, with significant growth in revenue from traditional campuses and new business expansions in full-time education and vocational training [6][7]. Financial Performance Summary - Revenue Growth: In H1 2024, the company achieved revenue of 1.62 billion yuan, with Q1 and Q2 revenues of 710 million yuan and 910 million yuan respectively, showing year-over-year growth of 36% and 25% [3][5]. - Profitability: The gross profit for H1 2024 was 584 million yuan, with a gross margin of 36%, an increase of 0.95 percentage points year-over-year [3][5]. - Net Profit: The net profit attributable to shareholders for H1 2024 was 178 million yuan, with a net profit margin of 11%, up 3.9 percentage points year-over-year [5][6]. - Cash Flow: The net cash flow from operating activities for H1 2024 was 225 million yuan, with cash on hand amounting to 860 million yuan as of the end of Q2 2024 [5][6]. Business Segment Analysis - Personalized Education: The company operates over 240 learning centers across more than 100 cities, focusing on personalized learning solutions [6][7]. - Full-time Education: The full-time repeat business has established over 30 bases nationwide, providing quality learning environments for students [6][7]. - Vocational Education: The investment in Yueyang Modern Service Vocational School is expected to enhance the company's presence in vocational education, with plans to enroll 4,500 students in the first year [6][7]. - Cultural Reading: The company is developing new cultural business models, including bookstores and reading spaces, to enhance community engagement [6][7]. Earnings Forecast - The company is projected to achieve revenues of 2.92 billion yuan, 3.53 billion yuan, and 4.08 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 253 million yuan, 338 million yuan, and 424 million yuan [8][10].