HUATU CENDES(SZ:300492) Guoxin Securities·2024-11-04 05:30Investment Rating - The report assigns a "Neutral" investment rating to the company, indicating that its stock performance is expected to be within ±10% of the market index over the next 6 to 12 months [15]. Core Views - The company is transitioning from its primary focus on architectural design to the recruitment training sector, leveraging the established brand of Huatu Education. This strategic shift is expected to enhance operational performance significantly [1][10]. - The recruitment training market remains robust, with a projected increase in the number of national examination candidates, although competition is intensifying, leading to a slight decline in market share among the top three institutions [10][12]. Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of 2.131 billion yuan, a year-on-year increase of 4702%, and a net profit attributable to shareholders of 129 million yuan, up 3595% [1][7]. - The gross margin for the first three quarters of 2023 was 57.90%, reflecting a significant improvement of 41.2 percentage points year-on-year, while the net profit margin was 6.07%, indicating a turnaround from previous losses [8][10]. - The company’s operating expenses have increased, with a period expense ratio of 51.99% for the first three quarters of 2023, up 28.15 percentage points year-on-year, primarily due to higher sales and marketing costs associated with the non-degree training business [8][10]. Revenue and Profit Forecast - The company is expected to generate revenues of 2.52 billion yuan, 2.89 billion yuan, and 3.30 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding net profits of 168 million yuan, 203 million yuan, and 241 million yuan [11][13]. - The projected price-to-earnings (PE) ratios for 2024, 2025, and 2026 are 62, 52, and 43, respectively, reflecting the anticipated growth in revenue and profit [11][13].