Investment Rating - The report assigns an "Outperform" rating to the company, with a target price of RMB 9.0, equivalent to HKD 9.9 [3][8]. Core Insights - The company is a leading vocational training institution in China, leveraging its extensive national presence and brand strength to meet the strong demand for skilled labor [8]. - Projected net profits attributable to shareholders for 2025-2027 are RMB 798 million, RMB 1.00 billion, and RMB 1.13 billion, with EPS of RMB 0.36, RMB 0.45, and RMB 0.51 respectively [8]. - The company is expected to experience significant revenue growth, with a 10.2% year-on-year increase in revenue for the first half of 2025 [15]. Financial Summary - For the first half of 2025, the company reported revenue of RMB 2.19 billion, a 10.2% increase year-on-year, and a net profit attributable to shareholders of RMB 403 million, up 48.4% year-on-year [15]. - The gross profit margin improved to 57.3%, reflecting effective cost control and business expansion [15]. - The company’s revenue segments showed overall positive performance, with culinary technology revenue increasing by 11.4% year-on-year and fashion and beauty revenue soaring by 90.2% year-on-year [16]. Segment Performance - Culinary technology revenue reached RMB 1.02 billion, with a gross profit margin of 60.5% [16]. - The fashion and beauty segment saw a remarkable growth of 90.2% year-on-year, with a gross profit margin of 61.4% [16]. - The company operates 234 schools and centers across almost all provinces in mainland China and Hong Kong, indicating a strong national footprint [17].

Group 1 - The Zhengzhou Railway Vocational and Technical College will only recruit undergraduate students for three specific majors by 2025, indicating a shift in vocational education dynamics [1][2] - The college's enrollment of undergraduate students has increased from 30 in 2022 to 135 by 2025, reflecting a growing market demand for high-skilled talent in the railway industry [3] - The trend of undergraduates choosing vocational education is seen as a rational decision, as many are dissatisfied with their original majors or have faced challenges in the job market [3][4] Group 2 - The perception of talent measurement is changing, with the traditional view of "white-collar jobs being superior to blue-collar jobs" being challenged [4] - Employment rates for vocational colleges have consistently surpassed those of regular universities over the past decade, indicating a shift in the relationship between education and employment [4] - The emergence of vocational undergraduate education is highlighted by the rising admission scores of vocational institutions, such as Shenzhen Polytechnic University reaching 600 points, comparable to "211" universities in the province [5] Group 3 - The phenomenon of undergraduates returning to vocational education is not a panacea for employment issues, as challenges like insufficient teaching resources and homogenized program offerings still exist [5] - The evolving educational landscape suggests that individuals are no longer confined to traditional educational pathways, with society increasingly valuing practical skills alongside theoretical knowledge [5]