Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return exceeding the market benchmark by more than 15% over the next 6-12 months [5]. Core Insights - The company achieved a revenue of 2.61 billion yuan in the first three quarters of 2025, representing a year-on-year increase of 16.3%. However, the net profit attributable to shareholders was 230 million yuan, up 31.5% year-on-year, but the third quarter saw a significant decline in net profit [1][2]. - The company is experiencing pressure on profit margins due to increased costs and investment expenses, particularly in the third quarter of 2025, where the gross profit margin dropped to 27.17%, a decrease of 5.07 percentage points year-on-year [2]. - The company has initiated a stock buyback program, intending to repurchase shares worth 1.1 to 1.5 billion yuan, reflecting confidence in its long-term development amidst a stabilizing education sector [3]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported a gross profit margin of 33.86%, which decreased to 27.17% in Q3, indicating a significant year-on-year decline [2]. - The sales expense ratio increased to 10.01% in Q3 2025, up 3.1 percentage points year-on-year, primarily due to efforts to enhance market share and increased marketing costs [2]. - The net profit margin for the first three quarters was 8.67%, while it fell to -0.42% in Q3, reflecting the impact of increased costs [2]. Industry Outlook - The education sector is gradually stabilizing, and the company, as a leading player in high school one-on-one training, is expected to benefit from industry supply adjustments [3]. - The company has cleared historical shareholder loans, alleviating financial cost pressures, and is poised for accelerated growth under the leadership of its founder [3]. Profit Forecast and Valuation - The profit forecasts for 2025-2027 have been adjusted downwards by 5% to 243 million yuan, 295 million yuan, and 351 million yuan respectively, with corresponding P/E ratios of 22x, 18x, and 15x [3].