Kaiwen Education(002659) Tianfeng Securities·2025-04-27 03:23Investment Rating - The report maintains a "Hold" rating for the company [6] Core Insights - The company has shown a turnaround in performance with a revenue increase of 17.7% year-on-year in Q1 2025, reaching 0.91 billion, and a net profit attributable to shareholders of 0.47 million, up 113% [1] - The K12 school operations are expanding, with notable achievements in student admissions to prestigious universities, indicating a strong educational quality and reputation [3][4] - The company is diversifying its course offerings, including the introduction of AP courses and domestic examination-focused classes, enhancing its educational services [4][5] Financial Performance - The company expects revenue of 3.2 billion in 2024, representing a 26% increase, but anticipates a net loss of 0.37 billion [1] - The projected net profits for 2025-2027 are 0.23 billion, 0.39 billion, and 0.78 billion respectively, with corresponding EPS of 0.04, 0.07, and 0.13 [11] - The company’s total market capitalization is approximately 2.82 billion, with a current price of 4.72 yuan per share [7] Operational Developments - The company has successfully established two K12 schools, which have received high recognition for their educational standards and facilities [2] - The operational experience gained since 2015 has significantly improved the company's educational service capabilities [2] - The company has signed a cooperation agreement with a bilingual school to provide operational management consulting, indicating a strategic move towards asset-light business models [5]