XUEDA(SZ:000526) GOLDEN SUN SECURITIES·2024-10-29 11:14Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company reported a steady revenue growth with a total revenue of 2.247 billion yuan for the first three quarters of 2024, representing a year-over-year increase of 25.29%. The net profit attributable to shareholders was 176 million yuan, up 50.16% year-over-year. Excluding stock payment impacts, the net profit reached 208 million yuan, reflecting a 77.55% increase year-over-year [1]. - The education business is expected to continue its growth trajectory, particularly in full-time education, with strong performance from its core high school personalized education business. The company anticipates a synergistic effect between its high school and full-time education businesses, supporting revenue growth throughout the year [1]. - The company has been actively repaying loans, reducing financial burdens and enhancing cash flow, which is expected to accelerate performance release [1]. - The expansion of learning centers is likely to improve market share, supported by favorable regulatory changes and a competitive landscape that benefits compliant operators [1]. - The vocational education segment is deepening its layout, with the first cohort of nearly 4,000 students enrolled in its newly acquired vocational college, indicating potential for rapid expansion and revenue growth [1]. Financial Summary - For 2024E, the company is projected to achieve a revenue of 2.7 billion yuan, with a year-over-year growth rate of 22%. The net profit is expected to reach 222 million yuan, reflecting a 44.2% increase year-over-year [2]. - The earnings per share (EPS) for 2024E is estimated at 1.80 yuan, with a price-to-earnings (P/E) ratio of 25.6 times [2]. - The company’s gross margin for the first three quarters of 2024 was 34.98%, and the net profit margin was 7.82%, indicating ongoing improvements in profitability [1]. Market Position and Strategy - The company operates over 300 personalized learning centers and several full-time schools, positioning itself well in the education sector. The regulatory environment is becoming more favorable for the education and training sector, which is expected to benefit the company’s growth [1]. - The strategic acquisition of vocational education institutions and partnerships with colleges is expected to enhance the company's offerings and market presence [1].