XUEDA(SZ:000526) Tianfeng Securities·2024-02-29 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price indicating a potential upside of over 20% within the next six months [4][24]. Core Insights - The company is expected to benefit from a significant reduction in industry supply due to recent policy changes, which may lead to lower operational costs and increased profitability [5][8]. - The establishment of a private high school in Zhumadian is anticipated to enhance revenue streams and diversify the company's income structure, contributing to new growth points [2][7]. - The company has a strong presence in personalized learning centers and full-time education bases, which are expected to provide a competitive edge in the evolving education sector [5][6]. Financial Summary - The company’s projected revenues for 2023, 2024, and 2025 are estimated at 2.52 billion, 3.07 billion, and 3.73 billion yuan respectively, with corresponding net profits of 145.17 million, 219.64 million, and 289.65 million yuan [8][11]. - The earnings per share (EPS) are forecasted to increase from 1.19 yuan in 2023 to 2.37 yuan in 2025, reflecting a positive growth trajectory [8][21]. - The company’s total assets are expected to grow from 3.34 billion yuan in 2023 to 3.78 billion yuan in 2025, indicating a strengthening financial position [13][21].