Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 5.60, indicating a potential upside of 94.4% from the current price of HKD 2.88 [1]. Core Insights - The company has shown strong revenue growth driven by quality education services, with total revenue for FY24H1 reaching HKD 3.17 billion, a year-on-year increase of 68.1% [1]. - The adjusted net profit for FY24H1 was HKD 0.54 billion, reflecting a significant increase of 168.9% year-on-year [1]. - The company's contract liabilities have increased by 183.8% year-on-year, providing a solid foundation for future financial performance [1]. - The quality education segment has become the main growth engine, contributing HKD 1.23 billion in revenue, a growth of 31.9% year-on-year [1]. - The company has doubled its employee count to 1,785, supporting its rapid growth [1]. Financial Performance Overview - For FY24H1, the company reported a gross profit margin of 44.96%, an increase of 8.0 percentage points year-on-year [1]. - The operating profit margin improved significantly, with net profit margin rising to 23.4% from 17.2% year-on-year [1]. - The company expects revenue to reach HKD 10.91 billion in FY24, with a year-on-year growth of 123% [1]. - Forecasted net profit for FY24 is projected at HKD 185.2 million, with continued growth expected in subsequent years [2]. Business Strategy and Development - The company is actively optimizing its quality education courses and has successfully obtained non-profit school operation licenses in Guangzhou [1]. - New non-academic products have been launched, including "Fun Little Reporter" and "Literary Aesthetics," aligning with educational policies [1]. - The company is focused on compliance and transformation in response to regulatory changes, aiming to return to normal operational development [1]. Market Position and Outlook - The company is positioned as a leader in the education and training industry in South China, with expectations of continued market share growth [1]. - The report anticipates that the company will gradually return to a normal growth trajectory, supported by its strategic initiatives and market demand [1].
卓越教育集团：素质教育带动收入超预期，合约负债同比高增