Kaiwen Education(SZ:002659) ZHONGTAI SECURITIES·2025-05-07 13:15Investment Rating - The report maintains an "Accumulate" rating for the company, indicating an expected relative performance increase of 5% to 15% over the next 6 to 12 months [8]. Core Views - The company has confirmed a turning point in profitability, with Q1 2025 showing a positive net profit after a series of high revenue growth quarters [3][5]. - The company achieved a revenue of 320 million yuan in 2024, reflecting a year-on-year growth of 25.9%, and a net profit of -37 million yuan, which is an improvement of 25.7% year-on-year [5]. - In Q1 2025, the company reported a revenue of 91 million yuan, a year-on-year increase of 17.7%, and a net profit of 468 thousand yuan, marking a return to profitability [5]. Summary by Sections Financial Performance - The company has shown continuous revenue growth for 10 consecutive quarters, confirming a stable upward trend in its fundamentals [5]. - The projected revenues for 2025 to 2027 are 401 million yuan, 461 million yuan, and 515 million yuan respectively, with growth rates of 25% and 15% [3]. - The forecasted net profit for 2025 is 36 million yuan, with a significant increase of 196% year-on-year, followed by 73 million yuan in 2026 and 98 million yuan in 2027 [3]. Cost Management - In Q1 2025, the company's gross margin improved to 32.4%, an increase of 5.7 percentage points year-on-year [5]. - The company has successfully reduced its sales and management expenses, contributing to improved profitability [5]. Business Development - The company is expanding its K12 school operations and has established a new vocational education branch in Shandong [5]. - The high school class at Chaoyang Kevin School commenced in the fall of 2023, and a math specialty class was introduced at Haidian Kevin School in the fall of 2024 [5].