Core Viewpoint - Kede Education's stock price has shown a year-to-date increase of 21.08%, with recent trading activity indicating mixed investor sentiment and a slight decline in share price on November 20 [1][2]. Group 1: Stock Performance - On November 20, Kede Education's stock price decreased by 2.11%, trading at 19.01 CNY per share with a total transaction volume of 1.69 billion CNY and a market capitalization of 62.57 billion CNY [1]. - Year-to-date, Kede Education's stock has increased by 21.08%, with a 0.42% rise over the last five trading days, an 8.69% increase over the last 20 days, and a 7.34% increase over the last 60 days [1]. Group 2: Financial Performance - For the period from January to September 2025, Kede Education reported a revenue of 557 million CNY, reflecting a year-on-year decrease of 3.64%, and a net profit attributable to shareholders of 92.45 million CNY, down 12.98% year-on-year [2]. - The company has distributed a total of 389 million CNY in dividends since its A-share listing, with 237 million CNY distributed over the past three years [3]. Group 3: Business Overview - Kede Education, established on January 14, 2003, and listed on March 22, 2011, is primarily engaged in the research, production, and sales of environmentally friendly printing inks and educational training services [2]. - The company's revenue composition includes 48.77% from vocational and full-time schools, 20.04% from quick-drying glossy printing inks, 17.13% from high-gloss printing inks, and 13.64% from high-wear printing inks [2]. Group 4: Shareholder Information - As of October 20, 2025, Kede Education had 43,600 shareholders, a decrease of 3.42% from the previous period, with an average of 7,446 circulating shares per shareholder, an increase of 3.54% [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited is the fourth largest, holding 2.3997 million shares as a new shareholder [3].

Core Viewpoint - Kede Education's stock price has shown mixed performance in 2023, with a year-to-date increase of 12.42% but a recent decline in the last 20 days by 10.81% [2] Financial Performance - For the period from January to September 2025, Kede Education reported a revenue of 557 million yuan, representing a year-on-year decrease of 3.64% [3] - The net profit attributable to the parent company for the same period was approximately 92.45 million yuan, down 12.98% year-on-year [3] Stock Market Activity - As of October 30, Kede Education's stock price was 17.65 yuan per share, with a market capitalization of 5.809 billion yuan [1] - The stock experienced a net outflow of 18.002 million yuan from main funds, with significant selling activity [1] - Kede Education has appeared on the stock market's "Dragon and Tiger List" twice this year, with the most recent instance on August 26, where it recorded a net buy of -69.1483 million yuan [2] Shareholder Information - As of September 30, 2025, Kede Education had 45,100 shareholders, a decrease of 0.60% from the previous period [3] - The average number of circulating shares per shareholder increased by 0.60% to 7,192 shares [3] - The company has distributed a total of 356 million yuan in dividends since its A-share listing, with 204 million yuan distributed in the last three years [4] Business Overview - Kede Education, established on January 14, 2003, and listed on March 22, 2011, is based in Suzhou, Jiangsu Province [2] - The company's main business includes the research, production, and sales of environmentally friendly printing inks and education training services [2] - The revenue composition includes 48.77% from vocational and full-time schools, 20.04% from quick-drying glossy printing inks, 17.13% from high-gloss printing inks, and 13.64% from high-wear printing inks [2]

Investment Rating - The report maintains a "Cautious Recommendation" rating for the company [7]. Core Viewpoints - The company's education business experienced a slight decline, with total revenue of 365 million yuan, down 1.15% year-on-year, and a net profit attributable to shareholders of 53 million yuan, down 15.16% year-on-year [1]. - The ink business showed stable growth, with high-gloss ink revenue increasing by 3.55% year-on-year, while the overall profitability of the ink segment improved [2]. - The company's debt ratio is on a downward trend, with a total asset-liability ratio of 21.53%, down 0.89 percentage points year-on-year, indicating a healthy cash flow situation [3]. - Strategic investment in Zhonghao Xinying, focusing on "AI + Education," is expected to yield positive results, with the company actively developing its AI education platform [4]. - Revenue projections for 2025-2027 are estimated at 859 million yuan, 910 million yuan, and 956 million yuan, with corresponding EPS of 0.48 yuan, 0.51 yuan, and 0.54 yuan, indicating a positive growth outlook [4][6]. Summary by Sections Financial Performance - In the first half of 2025, the company reported total revenue of 365 million yuan, a decrease of 1.15% year-on-year, and a net profit of 53 million yuan, down 15.16% year-on-year [1]. - The company's sales and management expenses increased by 8.80% and 4.68% respectively, contributing to the decline in net profit [1]. Business Segments - The ink business showed resilience, with high-gloss ink revenue reaching 58 million yuan, up 3.55% year-on-year, while other ink products experienced slight declines [2]. - The gross profit margins for high-gloss, high-wear, and fast-drying inks improved, indicating enhanced profitability [2]. Strategic Initiatives - The company invested 130 million yuan in Zhonghao Xinying, acquiring a 5.53% stake, and is focusing on AI-driven educational solutions [4]. - The AI education platform, Kede AI Learning, is in its growth phase, with over 30,000 users and ongoing upgrades [4]. Future Projections - Revenue forecasts for 2025, 2026, and 2027 are 859 million yuan, 910 million yuan, and 956 million yuan, with EPS estimates of 0.48 yuan, 0.51 yuan, and 0.54 yuan respectively [6]. - The dynamic PE ratios for the next three years are projected at 49x, 46x, and 43x, reflecting a favorable valuation trend [4][6].

Core Viewpoint - The recent financial performance of Kede Education shows a decline in revenue and net profit, while its investment in the AI chip company Zhonghao Xinying has seen a reduction in ownership percentage, raising concerns about its future growth prospects [1][2][3]. Financial Performance - In the first half of 2025, Kede Education reported revenue of 366 million yuan, a year-on-year decrease of 1.15%, and a net profit attributable to shareholders of 53.28 million yuan, down 15.16% year-on-year [1]. - The company's revenue has remained relatively stable over the past few years, fluctuating between 350 million to 390 million yuan in the first half of the year, and annual revenue between 770 million to 800 million yuan [9]. Investment in Zhonghao Xinying - Kede Education invested a total of 130 million yuan in Zhonghao Xinying, acquiring an 8.3791% stake, which has since decreased to 5.53% as of August 26, 2025 [3][4]. - The investment has not yielded positive returns, with Kede Education reporting an investment loss of 8.92 million yuan from Zhonghao Xinying in the first half of 2025 [4]. - Zhonghao Xinying, which focuses on AI chip development, reported revenue of 598 million yuan in 2024 but incurred a net loss of 14.4 million yuan in the first half of 2025 [4]. Business Segments - Kede Education's revenue from its vocational and full-time school business was 166 million yuan in the first half of 2025, a decrease of 3.30% year-on-year, with a gross margin of 41.06% [9]. - The remaining revenue primarily came from its ink business, with high-gloss, high-wear, and quick-drying inks contributing approximately 58.38 million yuan, 46.50 million yuan, and 68.28 million yuan, respectively [9]. Ownership Changes - The actual controller of Kede Education, Wu Xianliang, had previously planned to transfer shares, which would have changed the company's control structure, but the agreement was terminated a month later [9][10].