Core Viewpoint - The strategic partnership between Fenbi (02469) and Huatu Shanding (300492) is expected to significantly improve the competitive landscape of the recruitment training industry, leveraging both companies' strengths in technology, channels, and corporate governance to foster healthy industry development [1][2]. Summary by Categories Strategic Cooperation Details - The partnership will explore investment cooperation, including strategic investments and joint ventures [1]. - Both companies will recommend directors to each other's entities to establish a regular communication mechanism and share advanced management experiences [1]. - They will collaborate on AI technology to develop applications for the recruitment training industry, integrating their strengths in AI development [1]. Distribution Channel Cooperation - The companies will integrate their distribution channels to enhance operational efficiency by leveraging both online and offline sales channels [2]. Industry Improvement - The collaboration aims to reduce unhealthy competition in the industry and promote user service, establishing industry benchmarks through quality service and teaching standards [2]. - Both companies will analyze industry trends and user demand changes to provide data support for strategic cooperation adjustments [2]. Market Outlook - The market demand is expanding, as evidenced by the 341.6 million people passing the qualification review for the national exam in 2025, with an increase of 383,000 applicants year-on-year [4]. - Fenbi's AI written exam product launched in April is expected to become a second growth curve based on its active user base [4]. - Traditional large and small class businesses are likely to benefit from the stabilization of industry price wars [4]. - AI products are anticipated to expand into interviews, national and central enterprise exams, and public institutions next year [4].

Core Viewpoint - Huaxi Securities maintains a "buy" rating for Fenbi (02469) following its strategic partnership with Huatu Shanding, which is expected to significantly improve the competitive landscape of the recruitment training industry [1] Summary by Sections Strategic Cooperation Agreement - The partnership aims to leverage complementary resources to enhance overall competitiveness and explore collaboration in recruitment exam training [1] - Investment cooperation will include exploring strategic investments and establishing joint ventures [1] - Company governance will involve mutual recommendations for board members and establishing regular communication mechanisms [1] - AI technology collaboration will focus on developing AI applications for the recruitment training industry and sharing expertise [1] Distribution Channel Cooperation - Both companies will integrate their distribution channels to enhance operational efficiency [2] - They will advocate for industry self-regulation and user oversight to establish industry benchmarks through quality service and teaching standards [2] Benefits of Strategic Cooperation - The partnership is expected to boost market confidence and stabilize pricing in the recruitment training industry after three years of price wars [3] - As leading companies in the sector, the collaboration is likely to improve the competitive landscape by leveraging online and offline strengths [3] Future Opportunities - The 2025 national exam saw 3.416 million candidates pass the qualification review, with a year-on-year increase of 12.6%, indicating expanding market demand [4] - The launch of AI written exam products in April is anticipated to create a second growth curve based on an established active user base [4] - Traditional large and small class businesses are expected to benefit from stabilizing prices in the industry [4] - AI products are projected to expand into interviews, national and central enterprise exams, and public institution assessments next year [4]

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company has entered into a strategic cooperation agreement with Huatu, aiming to enhance overall competitiveness and explore collaboration in examination training business [2] - The partnership includes investment cooperation, governance, AI technology collaboration, distribution channel cooperation, and a commitment to reducing unhealthy competition in the industry [2] - The strategic collaboration is expected to boost market confidence and improve the competitive landscape in the examination training industry, which has been experiencing a price war for over three years [4] Financial Projections - The company anticipates a revenue increase in 2025, with 3.416 million people passing the qualification review, a year-on-year increase of 12.6% [5] - Revenue forecasts for 2025-2027 are projected at 3.061 billion, 3.192 billion, and 3.428 billion yuan respectively, with adjusted net profits of 277.1 million, 401.48 million, and 560.2 million yuan [5][7] - The earnings per share (EPS) are expected to be 0.12, 0.18, and 0.25 yuan for 2025-2027, with corresponding price-to-earnings (PE) ratios of 19, 13, and 9 [5][8] Financial Summary - The company's total revenue for 2023 is reported at 3.021 billion yuan, with a year-on-year growth of 7.5% [7] - The adjusted net profit for 2023 is 188.57 million yuan, reflecting a significant year-on-year increase of 109.03% [7] - The gross margin is projected to improve from 51.96% in 2023 to 54.00% by 2027 [8]