Core Insights - The national civil service examination is approaching, with a significant increase in participation in mock exams organized by Fenbi, indicating a growing demand for effective preparation services [1][4] - Fenbi has launched a series of targeted courses and personalized learning paths based on mock exam data analysis to help candidates improve their performance [3][6] - The competitive landscape for the civil service examination has intensified, leading to a higher demand for personalized and efficient preparation services [4] Group 1: Mock Exam Participation - Fenbi's ultimate mock exam attracted approximately 550,000 participants, marking the highest number for this year [1] - In 2025, Fenbi organized a total of 44 mock exam competitions, with over 9.4 million registrations, surpassing last year's 8.78 million [1] - The hashtag related to Fenbi's mock exams reached a discussion volume of 333.5 million on Weibo, reflecting the growing interest among candidates [1] Group 2: Educational Services and Innovations - Fenbi has developed a comprehensive system for identifying and addressing candidates' weaknesses, offering personalized study plans to enhance exam preparation [3][6] - The company has established a multi-faceted offline user engagement strategy, including workshops and recruitment events, to cater to diverse candidate needs [3] - Fenbi's AI product line, including the AI question practice system, has seen significant sales, with over 200,000 units sold within seven months, indicating strong market demand [6] Group 3: Market Trends and Competitive Landscape - The ratio of candidates passing the qualification review to the recruitment plan for the 2026 civil service examination is approximately 98:1, highlighting the competitive nature of the exam [4] - The recent relaxation of age restrictions for applicants has further intensified competition, increasing the demand for tailored preparation services [4] - Fenbi's innovative approach, including AI-driven interview preparation services, is positioning the company to capitalize on emerging market opportunities [6]

Investment Rating - The report maintains a "Recommended" rating for the company [5]. Core Views - The company has transformed into a new leader in offline public examination training, achieving significant revenue growth and profitability improvements. In 2024, the company reported revenue of 2.833 billion yuan, a year-on-year increase of 1046.34%, and a net profit of 53 million yuan, marking a return to profitability. For Q1 2025, revenue reached 827 million yuan, up 18.91% year-on-year, with a net profit of 121 million yuan, an increase of 67.38% [1][2]. - The company's strategic shift towards vocational education, particularly in civil service and public institution exam training, has positioned it as a new leader in the public examination sector. The gross margin for 2024 and Q1 2025 was 53.48% and 61.36%, respectively, while the net margin improved to 1.87% and 14.69% [1][2]. - The company has implemented a stock incentive plan aimed at motivating key employees, with performance targets set for net profit, which are expected to drive further growth [3]. Financial Performance Summary - The company forecasts revenue growth from 2.833 billion yuan in 2024 to 4.784 billion yuan in 2027, with growth rates of 1046.34%, 17.5%, 25.0%, and 15.0% for the respective years [4][8]. - The net profit attributable to shareholders is projected to increase from 53 million yuan in 2024 to 556 million yuan in 2027, with growth rates of 157.6%, 509.5%, 25.6%, and 37.0% [4][8]. - Earnings per share (EPS) are expected to rise from 0.38 yuan in 2024 to 3.95 yuan in 2027, with dynamic price-to-earnings (PE) ratios decreasing from 250 to 24 over the same period [4][8].