XUEDA(000526) Xinda Securities·2025-04-26 09:33Investment Rating - The investment rating for Xueda Education (000526) is "Buy" [1] Core Views - The report highlights that Xueda Education is a pioneer in personalized education and is undergoing rapid expansion, with a diversified layout [2] - In 2024, the company achieved a revenue of 2.79 billion, a year-on-year increase of 25.9%, and a net profit attributable to the parent company of 180 million, up 16.8% [2] - For Q1 2025, the company reported a revenue of 860 million, a year-on-year increase of 22.5%, and a net profit attributable to the parent company of 73.77 million, up 47.0% [2] Summary by Sections Financial Performance - In 2024, the company’s revenue reached 2.79 billion, with a net profit of 180 million, reflecting a growth of 25.9% and 16.8% respectively [2][4] - For Q1 2025, revenue was 860 million, with a net profit of 73.77 million, marking increases of 22.5% and 47.0% respectively [2][4] - The adjusted net profit forecast for 2025-2027 is set at 252 million, 304 million, and 363 million, with corresponding P/E ratios of 26x, 22x, and 18x [3][4] Expansion and Growth Strategy - The company is in a rapid expansion phase, increasing its personalized learning centers from over 240 to over 300 in 2024, a growth of approximately 25% [3] - The education training service fee for 2024 was 2.70 billion, up 25.6% [3] Profitability and Margins - The overall gross margin for 2024 decreased by 1.9 percentage points to 34.6%, with the education training gross margin down 2.6 percentage points to 33.8% [3] - The financial expense ratio decreased to 1.9% in 2024, attributed to the repayment of loans [3] Investment and Returns - Investment income significantly increased in Q1 2025 due to the recovery of previously impaired equity, resulting in an investment income of 1.328 billion [3] - The report indicates that the company is well-positioned for future growth despite initial profitability impacts from its expansion phase [3]