Investment Rating - The investment rating for China Oriental Education is "Buy" with a target price of 2.29 HKD, maintained as of April 6, 2024 [1]. Core Viewpoints - The report highlights a gradual recovery in training demand, with a focus on vocational skills education that addresses unmet needs in the market, thereby narrowing the supply-demand gap between employers and students [3]. - The company reported a revenue of 3.979 billion RMB for 2023, reflecting a year-on-year increase of 4.2%, while net profit decreased by 25.8% to 273 million RMB [1][3]. - The average training participants for the year reached 147,000, an increase of 2.9% year-on-year, indicating a positive trend in customer engagement [1][3]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 3.979 billion RMB, with a net profit of 273 million RMB, and an adjusted net profit of 281 million RMB, which is a 5.4% increase year-on-year [1]. - The gross profit margin for 2023 was 48.0%, a decrease of 1.5 percentage points compared to the previous year, primarily due to increased costs in employee salaries and benefits [2][3]. Brand Performance - Revenue breakdown by brand shows New Oriental at 1.865 billion RMB (46.9% of total revenue, down 2.7 percentage points), Oumaiqi at 330 million RMB (8.3%, up 0.6 percentage points), and Wan Tong at 847 million RMB (21.3%, up 2.5 percentage points) [1]. - The number of new training participants and registered customers for 2023 was 153,000, a year-on-year increase of 13.8% [1]. Future Projections - The report adjusts the revenue and net profit forecasts for FY24-26, estimating revenues of 4.4 billion RMB, 4.9 billion RMB, and 5.5 billion RMB respectively, with net profits of 340 million RMB, 400 million RMB, and 470 million RMB [3]. - The expected earnings per share (EPS) for FY24-26 are projected at 0.15, 0.18, and 0.22 RMB, with corresponding price-to-earnings (PE) ratios of 14, 12, and 10 [3].
培训需求逐步复苏