XUEDA(SZ:000526) China Post Securities·2025-06-26 08:25Investment Rating - The report initiates coverage with a "Buy" rating for the company [2][10]. Core Insights - The company, Xue Da Education, has shown stable growth in personalized education and diversified its profit structure. In 2024, the company achieved a revenue of 2.786 billion yuan, a year-on-year increase of 25.90%, and a net profit attributable to shareholders of 180 million yuan, up 16.84% year-on-year [5][6]. - The company is in a continuous expansion phase, with a flexible financial resource allocation for subsidiaries, allowing for quicker decision-making in market opportunities [7]. - The business has diversified into various sectors, including personalized education, vocational education, bookstores, and medical education, with significant progress in each area [8]. Financial Performance Summary - In 2024, the company reported a total revenue of 2.786 billion yuan, with a growth rate of 25.90%. The net profit attributable to shareholders was 180 million yuan, reflecting a growth of 16.84% [11]. - For 2025, the expected revenue is projected at 3.391 billion yuan, with a growth rate of 21.73%, and the net profit is anticipated to reach 252.57 million yuan, a growth of 40.56% [11]. - The company’s EBITDA for 2024 was 543.56 million yuan, with projections of 622 million yuan for 2025 [11]. Business Expansion and Strategy - The company has expanded its personalized learning centers from over 240 to more than 300, covering over 100 cities in China, and has increased its bilingual school enrollment to 5,000 students [8]. - The vocational education segment has seen acquisitions of two schools, focusing on specialized and urgently needed talent in the low-altitude economy sector [8]. - The medical education segment has launched a sub-brand, Qian Yi Health, to provide rehabilitation services for children with conditions like ADHD [8]. Future Outlook - The report forecasts revenues of 3.4 billion yuan in 2025, 4.1 billion yuan in 2026, and 4.7 billion yuan in 2027, with corresponding net profits of 253 million yuan, 304 million yuan, and 366 million yuan respectively [9][11]. - The expected EPS for 2025, 2026, and 2027 is projected to be 2.07 yuan, 2.49 yuan, and 3.01 yuan, respectively, indicating a favorable growth trajectory [9][11].