Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's core business, including education services and managed operations, grew by 43% and 53% respectively, with significant growth in study tours [2] - FY2024 group revenue, annual profit, and adjusted net profit attributable to the parent company were 3.321 billion, 556 million, and 577 million yuan, representing year-on-year growth of 44.2%, 66.3%, and 56.4% respectively [1] - The company's ROE reached a historical high of 24%, driven by reduced capital expenditures and a shift towards leasing for expansion [2] Business Performance - Comprehensive education services, restaurant operations, product sales, and management and franchise fee revenues were 1.745 billion, 919 million, 597 million, and 60 million yuan, with year-on-year growth of 42.7%, 65.5%, 23.2%, and 52.9% respectively [2] - In 2024, 90% of the company's high school students exceeded the Chinese university undergraduate admission score, a 6.5 percentage point increase year-on-year, and 55% exceeded the first-tier university admission score, a 4.7 percentage point increase [2] - The company added 3 new managed schools in FY2024, contributing to the growth in management and franchise fee income [2] Financial Metrics - FY2024 gross margin was 33.8%, a slight decrease of 0.1 percentage points year-on-year, while net margin and adjusted net margin were 16.7% and 17.4%, up 2.2 and 1.4 percentage points respectively [2] - Administrative expenses as a percentage of revenue decreased by 2.7 percentage points to 7.8%, primarily due to reduced employee costs and office administrative expenses [2] - Contract liabilities increased by 2.4% to 1.346 billion yuan, while capital expenditures decreased to 407 million yuan from 600 million yuan in the previous year [2] Future Outlook - The company's high school business is expected to maintain a 30% annual revenue growth, with the number of high school students projected to double by 2027 [3] - The managed school business is expected to grow from 10 schools to 100 segments by 2027, with potential for further integration of high-margin literacy programs [3] - Revenue and net profit forecasts for FY2025-2027 have been adjusted, with FY2027 revenue and net profit projected at 7.843 billion and 1.329 billion yuan respectively [3] Valuation and Share Repurchase - The company's latest closing price on November 25, 2024, was HK$4.24, with FY2025-2027 P/E ratios of 11x, 8x, and 6x respectively [3] - The company plans to repurchase HK$200 million worth of shares, with HK$140 million already repurchased [3]
天立国际控股：核心业务保持较快增长，ROE创历史新高