海外消费周报：办学投入持续增加，高教利润率承压

Investment Rating - The report maintains a "Buy" rating for the company, with a target price adjusted to HKD 2.99 from the previous HKD 3.46 [2]. Core Insights - The report highlights that the company is experiencing increased educational investment, which is putting pressure on profit margins in higher education [2][6]. - The company reported a revenue of RMB 2.4 billion for the fiscal year 2024, representing a year-on-year growth of 13.8%, with an adjusted net profit of RMB 770 million, up 6.1% year-on-year [2][6]. - The student enrollment slightly decreased to 139,000 from 140,000 in the previous fiscal year, but the structure of the student body improved, with an increase in the proportion of undergraduate students [2][6]. Summary by Sections Overseas Strategy - A significant policy implementation period is anticipated in December, with a focus on the central economic work conference's guidance for next year's policies [6]. Overseas Education - The report notes a continuous increase in educational investment, which is leading to pressure on profit margins in higher education [2][6]. - The company has increased its investment in educational infrastructure, with teaching-related costs rising by 31.3% and teacher costs by 12.1% [2][6]. - The company plans to maintain capital expenditures at approximately RMB 600-800 million annually for the next two years to enhance educational quality [2][6]. Overseas Pharmaceuticals - The 2024 National Medical Insurance Directory has been released, with 117 drugs participating in negotiations, achieving a success rate of 76% and an average price reduction of 63% [12][13]. Overseas Social Services - Ctrip reported a 16% year-on-year revenue increase to RMB 15.9 billion for Q3 2024, with outbound travel revenue growing by 40% [23]. - Tongcheng Travel's revenue for Q3 2024 increased by 51% to RMB 5 billion, with adjusted net profit rising by 47% to RMB 910 million [24].