Investment Rating - The report initiates coverage with a "Buy" rating for the company [5]. Core Views - The company is recognized as a leading player in the education and training sector, undergoing a successful transformation post the "double reduction" policy, with a strong recovery in traditional business and promising growth in new ventures [3][4]. Summary by Sections Company Overview - Founded in 1993, the company has evolved from a language training provider to a diversified education service platform, including educational services, lifestyle services, and cultural tourism [10]. - The company has a total share capital of 1,655 million shares and a market capitalization of 95.9 billion HKD [2]. Industry Analysis - The education and training regulatory environment is stabilizing, leading to improved competition dynamics as many smaller players have exited the market [4]. - Demand for quality education remains robust, with a projected market size for quality education exceeding 700 billion CNY by 2023, growing at a CAGR of approximately 30% from 2020 to 2023 [3][4]. Business Performance - The company reported a revenue of 1.2 billion USD in FY24Q3, reflecting a year-over-year increase of 60%, marking five consecutive quarters of double-digit growth [21]. - The traditional business segments, particularly study abroad and adult education, have shown strong recovery, with revenues increasing by 39% and 53% year-over-year, respectively [3][4]. Financial Projections - Revenue forecasts for FY24, FY25, and FY26 are projected at 4.305 billion USD, 5.329 billion USD, and 6.509 billion USD, respectively, with year-over-year growth rates of 44%, 24%, and 22% [5]. - Adjusted net profits are expected to reach 315 million USD, 441 million USD, and 656 million USD for the same periods, with growth rates of 77.8%, 39.8%, and 48.9% [5]. Valuation - The report employs a Sum-of-the-Parts (SOTP) valuation method, estimating a target market value of 145.6 billion HKD, which corresponds to a target price of 88 HKD per share [5].
新东方-S：深度研究报告：轻舟已过万重山，多元转型焕新生