HUATU CENDES(SZ:300492) Tianfeng Securities·2024-11-04 00:42Investment Rating - The report adjusts the investment rating to "Hold" from "Buy" due to uncertainties in consumer purchasing intentions and course enrollment [3][5]. Core Insights - The company reported Q3 2024 revenue of 620 million and a net profit attributable to shareholders of 8 million, with a gross margin of 58% and a net profit margin of 6% [1]. - The expected increase in the national civil service examination pass rate in 2025 is projected to drive growth in training participation, duration, and pricing, contributing to a stable and healthy recruitment market [2]. - The company has a robust teaching and research system, with a professional faculty and strict training standards, which enhances its competitive edge in the education sector [2][4]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a total revenue of 2.1 billion and a net profit of 130 million, with a non-recurring net profit of 100 million [1]. - The company’s EPS for 2024-2026 is projected to be 1.5, 1.9, and 2.5 respectively, with corresponding P/E ratios of 50X, 39X, and 30X [3][8]. - The financial data indicates a significant revenue growth rate of 1037.28% for 2024E, with a projected revenue of 2.81 billion [8][11]. Market and Competitive Position - The company is positioned in the education sector, specifically focusing on civil service exam training, which is expected to benefit from favorable market conditions and increased demand for training services [2][4]. - The report highlights the company's innovative product strategies and a coordinated approach across various business lines to enhance product quality and market competitiveness [4].