XUEDA(SZ:000526) Soochow Securities·2024-04-28 00:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 15% compared to the benchmark in the next 6 months [11]. Core Insights - The company achieved a significant increase in net profit, reaching 154 million yuan in 2023, a year-on-year growth of 1,035.24% [5]. - The overall revenue for 2023 was 2.21 billion yuan, reflecting a year-on-year increase of 23% [5]. - The company's gross margin improved to 36.5% in 2023, up by 8.5 percentage points, driven by strong demand for personalized high school training [5][6]. - The company has reduced its debt by repaying 400 million yuan in 2023, which is expected to further lower its debt ratio [5]. - The personalized 1V1 training business has expanded nationwide, with nearly 240 outlets covering over 100 cities [6]. - In Q1 2024, the company reported a revenue of 705 million yuan, a year-on-year increase of 36%, and a net profit of 50.18 million yuan [6]. - The education policy environment has stabilized, benefiting the company as it is less affected by recent regulatory changes compared to K9 training institutions [6]. Financial Summary - The company's total revenue projections for 2024-2026 are 2.86 billion yuan, 3.58 billion yuan, and 4.43 billion yuan, respectively, with corresponding net profits of 276.34 million yuan, 360.65 million yuan, and 450.72 million yuan [4][11]. - The latest price-to-earnings (P/E) ratios for 2024-2026 are projected at 28.76, 22.04, and 17.63, respectively [4][11]. - The company's earnings per share (EPS) are expected to grow from 2.26 yuan in 2024 to 3.69 yuan in 2026 [4][11].