Jinwu Financial News | According to Tianfeng Securities Research, in 2023, the company's revenue of Xile Education (01769) was 570 million yuan, up 41.9%; gross profit of 240 million yuan, up 72%; net profit to mother was 86 million yuan, up 58%; net profit after adjustment was 108 million yuan, up 98.5%.
According to the bank, in 2023, the company's non-academic quality courses and other revenue was 519 million yuan, an increase of 40.3%; revenue from academic education courses was 52 million yuan, an increase of 60.3%; the number of students enrolled in the company's non-academic quality courses was 239,000, an increase of 38%; and the number of tutoring hours was 5.97 million, an increase of 39.5%. The increase in performance during the period was mainly due to (i) an increase in total coaching hours, which led to an increase in earnings, (ii) improved operational efficiency, and (iii) fair value returns on financial assets (while a fair value loss was recorded in '22).
The bank raised its profit forecast and maintained a “buy” rating. Based on the company's 2023 results announcement, the bank raised its 24-25 profit forecast and gave a profit forecast for 2026. The bank expects the company's 24-25 revenue to be 970 million yuan, 1.35 billion yuan (original values were 950 million yuan and 1.29 billion yuan respectively), and 1.83 billion yuan in 2026; net profit after the 2024-25 adjustment was 141 million yuan and 191 million yuan respectively (original values were RMB 135 million and RMB 175 million); 2026 It was RMB 232 million for the year; EPS was RMB 0.25 and RMB 0.34 per share in 2024-25 (original value was RMB 0.24 per share and RMB 0.32 per share), and RMB 0.42 per share in 2026. The corresponding PE for 2024-26 is 15/11/9X, respectively.