Investment Rating - The report maintains a "Buy" rating for New Higher Education Group [6][15]. Core Views - New Higher Education Group reported FY24 revenue of RMB 2.4 billion, a year-on-year increase of 13.8%, with an adjusted net profit attributable to shareholders of RMB 770 million, up 6.1% year-on-year. The company distributed final dividends in shares, with a payout ratio of 50% [6][12]. - The company continues to optimize its student structure, with a slight decrease in total enrollment to 139,000 from 140,000 in FY23. However, the proportion of new undergraduate students increased by 4 percentage points year-on-year, and the proportion of undergraduate students rose by 1 percentage point year-on-year, leading to a 13.2% increase in tuition revenue despite the slight decline in total enrollment [6][13]. - The company has increased its investment in educational facilities, resulting in a 19.1% rise in accommodation fees, contributing to the overall revenue growth [6][13]. Financial Data and Profit Forecast - For FY24, the company's revenue cost was RMB 1.54 billion, a year-on-year increase of 16.9%. Teaching-related costs rose by 31.3%, and teacher salaries increased by 12.1% [7][14]. - The report indicates that the company will maintain capital expenditures at approximately RMB 600 million to RMB 800 million annually over the next two years due to ongoing evaluations of two undergraduate schools [7][15]. - Profit forecasts for FY25 and FY26 have been downgraded to RMB 800 million and RMB 830 million, respectively, with a new profit forecast of RMB 880 million for FY27. The target price has been adjusted to HKD 2.99 from HKD 3.46 [7][15]. Revenue and Profit Projections - The projected revenue and profit figures for the upcoming years are as follows: - FY24 Revenue: RMB 2,412 million (10% growth) - FY25 Revenue: RMB 2,617 million (estimated) - FY26 Revenue: RMB 2,844 million (estimated) - FY27 Revenue: RMB 3,119 million (estimated) - FY24 Net Profit: RMB 756 million (estimated) - FY25 Net Profit: RMB 801 million (estimated) - FY26 Net Profit: RMB 831 million (estimated) - FY27 Net Profit: RMB 881 million (estimated) [9][17].
新高教集团：办学层次持续提升，业绩增长短期承压