Jinwu Financial News | Western Securities released research reports that the company achieved adjusted net profit of 1,092 billion yuan in the first quarter of 2024, an increase of 4.5% over the previous year. Part of the company's domestic market revenue increased 19.2% to 31.79% year-on-year, accounting for 97% of the company's revenue. It is mainly driven by the increase in the number of students enrolled in the higher vocational education business and the average income per student.
According to the bank, the company stepped up expansion efforts during the reporting period, and the current expenditure increased by 66.6% year-on-year, mainly related to the construction of new buildings in the existing campus and the expansion capacity of Shandong and Guangdong Province. With the expansion of the campus and the increase in courses, investment in teachers and teaching increased. In the future, as the company expands and completes construction, the scale effect will show, and the company's profitability will have a lot of room to improve.
The bank predicts that in 2024-2026, the company's operating down payment will be 66.51/74.95/8.394 billion yuan, YoY +18.4%/12.7%/12.0%, and net profit to mother will be 22.07/24.84/2,759 billion yuan, YoY +19.6%/12.5%/11.1%, respectively, maintaining the “buy” rating.