Investment Rating - The investment rating for the company is "Outperform the Market" [7] Core Views - The company is expected to maintain high dividends in 2025, with a focus on steady recovery in mature programs and rapid growth in beauty training [1][3] - The adjusted net profit for 2025 is projected to be 790 million RMB, nearing the upper limit of previous earnings forecasts, driven by rapid revenue growth and effective cost control [1][3] - The company has diversified its offerings into emerging sectors such as beauty and pet care, which are expected to contribute significantly to future growth [3][23] Summary by Relevant Sections Financial Performance - In 2025, the company achieved total revenue of 4.616 billion RMB, a year-on-year increase of 12.1%, and a net profit of 756 million RMB, up 47.5% [1][11] - The adjusted net profit reached 792 million RMB, reflecting a substantial year-on-year growth of 50.9% [1][11] - The average training enrollment increased by 6.1% to 155,000, with a favorable trend in new admissions [1][13] Business Segments - The culinary arts segment showed a revenue of 2.14 billion RMB, growing by 12%, with a gross margin improvement to 59% [2][14] - The automotive services segment achieved record revenue of 1.03 billion RMB, up 13%, benefiting from the backdrop of smart manufacturing [2][14] - The fashion beauty segment emerged as a new growth engine, with revenue soaring by 72% to 180 million RMB [2][15] Cost Management and Profitability - The company's gross margin improved to 55.3%, up 4 percentage points, due to effective cost management and revenue growth [2][21] - The selling expense ratio decreased to 22.8%, down 1 percentage point, while administrative expenses also saw a reduction [2][21] - The adjusted net profit margin increased by 4.4 percentage points to 17.2% [21] Dividend Policy - The company plans to distribute a final dividend of 0.26 RMB per share, totaling 577 million RMB, which corresponds to a payout ratio of approximately 73% of adjusted net profit [3][21] - The current market capitalization corresponds to a TTM dividend yield of 5%, highlighting the company's commitment to shareholder returns [3][21] Future Projections - The company forecasts net profits of 1.098 billion RMB and 1.375 billion RMB for 2026 and 2027, respectively, with an initial estimate of 1.56 billion RMB for 2028 [3][23] - The current stock price reflects a PE ratio of 11/9/8x, indicating attractive valuation [3][23]

Investment Rating - The investment rating for the company is "Outperform the Market" [6][4][29] Core Views - The company has experienced a significant acceleration in revenue growth, achieving 2.186 billion yuan in revenue for the first half of 2025, a year-on-year increase of 10.2%, marking a new high since its listing. The net profit reached 403 million yuan, up 48.4% year-on-year, closely approaching the upper limit of previous forecasts [1][9] - The company is benefiting from a favorable employment environment, leading to a recovery in long-term student enrollment and a steady increase in average tuition fees. The average tuition fee for the first half of 2025 was 28,000 yuan, reflecting a year-on-year increase of 4.3% [2][4][18] Summary by Sections Revenue and Profitability - In the first half of 2025, the company achieved a revenue of 2.186 billion yuan, with a net profit of 403 million yuan, indicating a strong performance with a net profit margin of 19.0%, up 5.0 percentage points year-on-year [1][3][20] - The company’s gross profit margin was 57.3%, an increase of 4.3 percentage points, suggesting significant room for further improvement in profitability [3][20] Enrollment and Tuition - The company enrolled 84,000 students in the first half of 2025, a 7% increase year-on-year, with the fashion beauty industry showing the highest growth rate among various programs [2][13] - The average training fee per student increased to 28,000 yuan, with a notable rise in tuition fees for specific programs such as culinary arts and fashion beauty [18][25] Cost Control and Efficiency - The company has effectively controlled costs, with a reduction in research, sales, and management expense ratios, leading to improved operational efficiency [3][20] - The company has also completed adjustments to its campus structure, with a total of 234 schools, including three vocational colleges, enhancing its educational offerings [23][25] Future Outlook - The company is expected to see revenue growth rates of 10.2%, 12.6%, and 13.3% for 2025, 2026, and 2027, respectively, driven by an increase in student enrollment and tuition fee adjustments [25][26] - The forecasted net profit for 2025 is 860 million yuan, reflecting a significant increase of 67.8% year-on-year, with further growth anticipated in subsequent years [4][26]