Core Viewpoint - Company reported a mixed performance in the first half of 2025, with revenue growth but declining net profit, indicating challenges in the competitive education market and the impact of new center openings [1][2][3][4] Group 1: Financial Performance - In H1 2025, the company achieved revenue of 439 million yuan, a year-on-year increase of 10.1%, while net profit attributable to shareholders was 63 million yuan, down 23.9% year-on-year [1] - Adjusted net profit attributable to shareholders was 81 million yuan, reflecting a decrease of 13.1% year-on-year [1] - The gross profit margin for H1 2025 was 34.3%, a decline of 10.1 percentage points, primarily due to high initial costs from new centers in Guangzhou [2] Group 2: Business Segments - Revenue from non-academic quality courses and other businesses was 388 million yuan, up 5.8% year-on-year, with student enrollment reaching 177,800, an increase of 4.8% [1] - The tutoring business showed significant growth, generating 52 million yuan in revenue, a year-on-year increase of 58.7%, with student enrollment of 23,000, up 56.6% [1] Group 3: Market Dynamics - Revenue growth in the Shenzhen market slowed due to intensified competition and internal management changes, while the Guangzhou market showed promising expansion [3] - The company plans to continue expanding in the Guangdong province, with new centers in Dongguan, Foshan, and other cities scheduled for future operations [3] Group 4: Profit Forecast and Valuation - The company revised its net profit forecasts for 2025-2027 downwards to 159 million, 209 million, and 271 million yuan, representing reductions of 25%, 28%, and 29% respectively [4] - The projected earnings per share (EPS) for 2025-2027 are 0.28, 0.37, and 0.48 yuan, with corresponding price-to-earnings (PE) ratios of 9x, 7x, and 6x [4]