Core Viewpoint - China Oriental Education (00667) has projected a 45%-50% year-on-year increase in net profit for the first half of 2025, driven by a 7% increase in new student registrations and a 10% rise in revenue, alongside effective cost control measures [1][2]. Group 1: Financial Performance - The company has experienced a significant market value increase of over 2.3 times this year, becoming a standout in the vocational education sector, although its current PE ratio has reached 34 times, indicating a potential peak in valuation [1][3]. - For the fiscal year 2024, the company expects a net profit of 513 million yuan, representing an 88% increase, marking a five-year high [7]. - The average tuition fee across its five training brands is projected to be 27,600 yuan, with a year-on-year increase of 3.6%, and the total number of training participants is approximately 146,300, reflecting a slight increase of 0.4% [7]. Group 2: Market Dynamics - The company's stock performance has been bolstered by policy-driven expectations and a short squeeze phenomenon, with significant policy support for vocational education, including the issuance of the "Education Power Construction Plan" [3][6]. - The vocational education sector has seen a rebound since January, with a cumulative increase of over 45% this year, leading the Hong Kong stock market [3][4]. - China Oriental Education is recognized as the largest vocational skills education provider in China, having recorded a price increase of over 140% in the past seven months [4]. Group 3: Competitive Landscape - While China Oriental Education has shown strong performance, other vocational education institutions have also reported double-digit growth in revenue and net profit, indicating a competitive market environment [8]. - The divergence in market performance between vocational training and academic institutions is notable, with the former receiving more capital attention due to favorable policies and market conditions [8][9]. - The company is well-positioned to benefit from the growing demand for vocational skills training, especially in a high unemployment environment, enhancing its market appeal [8][9]. Group 4: Future Outlook - Despite reaching a potential peak in valuation, the company is expected to maintain a strong growth trajectory, supported by favorable policies and a solid business foundation [2][9]. - The ongoing growth in the vocational education sector presents long-term investment opportunities, particularly for high-performing stocks and those at valuation inflection points [9].

Core Viewpoint - China Oriental Education (00667) has announced a significant profit increase forecast for the first half of 2025, expecting a year-on-year growth of 45%-50% in net profit, driven by a 7% increase in new student registrations and a 10% rise in revenue due to effective cost control and operational efficiency [1][2]. Financial Performance - The company has experienced a strong market performance this year, with a cumulative increase of over 2.3 times in market value, although its price-to-earnings (PE) ratio has reached 34 times, indicating a potential peak in valuation [1][3]. - For the fiscal year 2024, the company is projected to achieve a net profit of 513 million yuan, representing an 88% year-on-year increase, marking a five-year high [7]. Market Dynamics - The stock price of China Oriental Education has been influenced by two main drivers: policy support and a short squeeze phenomenon, leading to a bullish market sentiment [3][6]. - Recent favorable policies, such as the "Education Power Construction Plan (2024-2035)" and new vocational education standards, have positively impacted the vocational education sector, particularly benefiting companies like China Oriental Education [3][4]. Competitive Position - As the largest vocational skills education provider in China, the company has maintained a leading position in the market, with a 1.4 times increase in stock price over the past seven months [4][6]. - The company operates five training brands, each catering to different fields, with all brands maintaining a gross margin above 50% [7]. Industry Context - The vocational education sector has seen a general upward trend, with many institutions achieving double-digit growth in revenue and net profit, although China Oriental Education's performance is considered average compared to peers [8]. - The divergence in valuation between vocational training and academic institutions is expected to persist, with the former receiving more capital attention due to favorable market conditions and high unemployment rates driving demand for skill-based training [8][9]. Long-term Outlook - Despite reaching a potential peak in valuation, the company is expected to maintain a strong growth trajectory in the long term, supported by favorable policies and a solid operational foundation [2][9]. - Investors are encouraged to look for opportunities in high-performing stocks within the vocational education sector, particularly those that may be undervalued [9].