HUATU CENDES(SZ:300492) Minsheng Securities·2024-04-29 00:00Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 96.45 CNY [12]. Core Insights - The company's revenue for 2023 was 247 million CNY, with a net profit attributable to shareholders of -91.97 million CNY. In Q1 2024, the company achieved a revenue of 695 million CNY and a net profit of 72.56 million CNY, indicating significant improvement in profitability [11]. - The training business is progressing well, with the company establishing over 400 subsidiaries and more than 1,000 service points nationwide. However, the architectural design business is underperforming due to the impact of the real estate sector [11]. - The company expects net profits for 2024, 2025, and 2026 to be 461 million CNY, 620 million CNY, and 822 million CNY respectively, with corresponding PE ratios of 29X, 22X, and 16X [11]. Financial Summary - Total revenue projections for the company are 2.78 billion CNY in 2024, 3.48 billion CNY in 2025, and 4.21 billion CNY in 2026, reflecting growth rates of 131.3%, 1025.7%, and 25.0% respectively [11]. - The gross profit margin for Q1 2024 was 55.74%, and the net profit margin was 10.43%, showing a marked improvement in profitability [11]. - The company's contract liabilities increased by 133% in Q1 2024 compared to the end of 2023, reaching 545 million CNY [11].