SXN(SH:600661) Tianfeng Securities·2024-11-01 01:00Investment Rating - The report maintains a "Buy" rating for the company with a target price set above the current price of 14.53 CNY [8][6]. Core Insights - The company has demonstrated strong revenue growth, with Q3 2024 revenue reaching 400 million CNY, a 31% increase year-on-year, and a total revenue of 970 million CNY for the first three quarters, up 35% [4][6]. - The gross margin for the first three quarters of 2024 is reported at 44.1%, a decrease of 1.7 percentage points, while the net profit margin increased by approximately 14 percentage points to 2% [1][4]. - The company is expanding its offline network in Shanghai, enhancing its educational offerings to meet diverse customer needs, and focusing on product innovation and integration [2][5]. Financial Performance Summary - The company’s revenue is projected to grow from 965.73 million CNY in 2023 to 1.29 billion CNY in 2024, reflecting a growth rate of 33.1% [7]. - The net profit attributable to the parent company is expected to recover from a loss of 187.87 million CNY in 2023 to a profit of 33.50 million CNY in 2024 [7][12]. - Earnings per share (EPS) are forecasted to be 0.12 CNY in 2024, increasing to 0.58 CNY in 2025 and 0.78 CNY in 2026 [3][7]. Market Position and Strategy - The company is leveraging its established foundation in educational services to create a comprehensive product matrix that caters to a wide range of age groups and learning needs [4][5]. - The management has shown maturity in handling educational centers, continuously adapting to market changes and focusing on innovation across various aspects of its operations [5][6].