Gaotu(GOTU) 交银国际证券·2025-02-28 02:56Investment Rating - The report assigns a "Buy" rating for the company, indicating an expectation of total returns exceeding the relevant industry over the next 12 months [3][20]. Core Insights - The company is projected to achieve stable revenue growth with narrowing losses expected by 2025, with a target price set at 3.32 [1][7]. - Revenue for 2025 is estimated to reach 5.77 billion RMB, reflecting a year-on-year growth of 26.7% [2][10]. - The company aims to optimize its cost structure while maintaining revenue growth, with expectations of improved profitability in the second half of 2025 [7][10]. Financial Overview - Revenue (in million RMB) is forecasted as follows: 2023: 2,961; 2024: 4,554; 2025E: 5,768; 2026E: 6,837; 2027E: 7,762, with corresponding year-on-year growth rates of 18.5%, 53.8%, 26.7%, 18.5%, and 13.5% respectively [2][16]. - Net profit (in million RMB) is expected to improve from a loss of 996 million in 2024 to a loss of 215 million in 2025, with a return to profitability projected in 2026 [2][16]. - The company’s gross margin is anticipated to stabilize around 67.2% by 2025, with operational efficiency improvements contributing to this stability [18]. Performance Metrics - The company’s stock has shown a year-to-date increase of 51.6%, with a market capitalization of approximately 479.34 million USD [5][10]. - The average daily trading volume is reported at 15.05 million shares, indicating strong market interest [5]. - The company’s price-to-earnings ratio is projected to be 31.6 in 2026 and 19.7 in 2027, reflecting a gradual improvement in earnings expectations [2][16].