Investment Rating - The report maintains a "Buy" rating for China Oriental Education, indicating a positive outlook for the company's stock performance relative to the local market index [14][21]. Core Insights - The company is expected to experience a dual improvement in performance and valuation, driven by its strong brand influence in various training sectors such as culinary arts, pastry, information technology, and automotive services [2][14]. - Revenue for the first half of 2025 is projected to grow by 10.2%, with a gross margin increase to 57.3%, reflecting effective business expansion and cost control [2][14]. - The company operates 234 schools and centers across mainland China and Hong Kong, with a steady increase in training participants [4][14]. Financial Summary - Revenue projections for the years 2024 to 2027 are as follows: - 2024: 4,116 million RMB - 2025: 4,585 million RMB (up 11%) - 2026: 5,088 million RMB (up 11%) - 2027: 5,591 million RMB (up 10%) [5][12] - Net profit forecasts for the same period are: - 2024: 513 million RMB - 2025: 798 million RMB (up 56%) - 2026: 1,004 million RMB (up 26%) - 2027: 1,128 million RMB (up 12%) [5][12] - Earnings per share (EPS) estimates are: - 2024: 0.24 RMB - 2025: 0.36 RMB - 2026: 0.45 RMB - 2027: 0.51 RMB [5][12]. Market Performance - The stock price has fluctuated between 2.43 and 9.05 HKD over the past 52 weeks, with a current market capitalization of 13,808 million HKD [8][12]. - The report suggests a target price of 9.0 RMB, equivalent to approximately 9.9 HKD, based on a 20X PE valuation for 2026 [14].
中国东方教育（00667）：跟踪报告：景气回暖，估值修复潜力大