Core Viewpoint - China Oriental Education (00667) is recognized as a leading vocational training institution in China, leveraging its strong national presence and brand power to meet the robust demand for high-skilled talent in the labor market [1] Financial Performance - In the first half of 2025, the company's revenue reached 2.186 billion yuan, reflecting a year-on-year growth of 10.2%, while the net profit attributable to shareholders was 403 million yuan, marking a significant increase of 48.4% [3] - The gross profit margin improved to 57.3%, an increase of 4.3 percentage points, indicating effective cost control alongside business expansion [2][3] Segment Performance - Revenue from culinary technology was 1.024 billion yuan, up 11.4%, with a gross margin of 60.5% [4] - Revenue from pastry and western cuisine reached 182 million yuan, growing 14.3%, with a gross margin of 60.4% [4] - Information technology and internet technology revenue declined by 3.0% to 367 million yuan, but the gross margin increased to 57.6% [4] - Automotive services generated 492 million yuan, a 9.6% increase, with a gross margin of 54.7% [4] - Fashion beauty industry revenue surged by 90.2% to 77 million yuan, with a gross margin of 61.4% [4] - Other business revenue was 44 million yuan, up 18.2%, but with a negative gross margin of 8.6% [4] Business Expansion - As of the first half of 2025, the company operates 234 schools and centers across almost all provinces in mainland China and Hong Kong, having acquired Shanxi Metallurgy Technician College during the period [5] - The average number of trainees for long-term courses was 134,100, a year-on-year increase of 4.9%, accounting for 87.8% of total trainees [5] - New enrollments reached 83,500, reflecting a 7.1% increase compared to the previous year [5]

Investment Rating - The report maintains a "Buy" rating for China Oriental Education, indicating a positive outlook for the company's stock performance relative to the local market index [14][21]. Core Insights - The company is expected to experience a dual improvement in performance and valuation, driven by its strong brand influence in various training sectors such as culinary arts, pastry, information technology, and automotive services [2][14]. - Revenue for the first half of 2025 is projected to grow by 10.2%, with a gross margin increase to 57.3%, reflecting effective business expansion and cost control [2][14]. - The company operates 234 schools and centers across mainland China and Hong Kong, with a steady increase in training participants [4][14]. Financial Summary - Revenue projections for the years 2024 to 2027 are as follows: - 2024: 4,116 million RMB - 2025: 4,585 million RMB (up 11%) - 2026: 5,088 million RMB (up 11%) - 2027: 5,591 million RMB (up 10%) [5][12] - Net profit forecasts for the same period are: - 2024: 513 million RMB - 2025: 798 million RMB (up 56%) - 2026: 1,004 million RMB (up 26%) - 2027: 1,128 million RMB (up 12%) [5][12] - Earnings per share (EPS) estimates are: - 2024: 0.24 RMB - 2025: 0.36 RMB - 2026: 0.45 RMB - 2027: 0.51 RMB [5][12]. Market Performance - The stock price has fluctuated between 2.43 and 9.05 HKD over the past 52 weeks, with a current market capitalization of 13,808 million HKD [8][12]. - The report suggests a target price of 9.0 RMB, equivalent to approximately 9.9 HKD, based on a 20X PE valuation for 2026 [14].

Group 1 - The core viewpoint of the articles emphasizes the transformation of vocational education from traditional skill training to a crucial solution for talent shortages in county economies [1][2][3] - The rise of county economies is highlighted as a significant focus for future development, with vocational education playing a key role in addressing the talent gap in these regions [2][3] - The challenges faced by county economies include a lack of skilled talent, particularly in integrated industries such as e-commerce and design, which hinders local business expansion [2][3] Group 2 - China Oriental Education is recognized as a leading example in vocational education, implementing a "policy + vocational education + industry" closed-loop model to support county economic development [1][5] - The company has developed a sustainable path for vocational education that includes precise course adaptation, deep collaboration with enterprises, and the construction of diverse employment ecosystems [1][5] - The integration of vocational education with local economic needs is seen as a critical factor for enhancing regional competitiveness and addressing structural employment issues [4][8] Group 3 - The establishment of vocational education industrial parks by China Oriental Education represents a strategic upgrade in their educational model, ensuring alignment with local industry demands [9][10] - The company collaborates with leading enterprises like Chery and BYD to cultivate a skilled workforce tailored to the needs of the local automotive industry [10][13] - The focus on innovative training models, such as project-based learning and partnerships with local agricultural sectors, aims to enhance the quality of vocational education and support rural revitalization [4][18] Group 4 - The articles detail the success of China Oriental Education in creating a talent pipeline that meets the specific needs of local industries, thereby facilitating economic growth in county areas [19][20] - The company's approach includes a combination of short-term training and long-term education, ensuring that graduates are equipped with relevant skills for the job market [7][18] - The emphasis on local employment opportunities and entrepreneurship is evident, with many graduates choosing to remain in their home regions to contribute to local economies [19][20]