DOUSHEN(300010) 中国银河·2024-10-29 12:02Investment Rating - The report gives an "Accumulate" rating for Dou Shen Education (300010.SZ) [2][5]. Core Insights - Dou Shen Education reported a revenue of 557 million yuan for the first three quarters of 2024, a year-on-year decrease of 12.9%. However, it achieved a net profit of 111 million yuan, marking a turnaround from losses, with a non-recurring net profit of 110 million yuan also showing a recovery [1]. - The company has completed its bankruptcy restructuring and returned to a healthy business and financial structure. In Q3, the revenue grew by 28% year-on-year, reaching 230 million yuan, with a non-recurring net profit of 42 million yuan, indicating a successful recovery driven by online live streaming and non-subject quality training [1][2]. - Dou Shen Education has partnered with Microsoft and a leading domestic AI model company, Zhi Pu Hua Zhang, to establish a joint venture focused on the development and sales of AI education products. The company aims to leverage its strengths in K9 education and AI technology to enhance its product offerings and market position [2][4]. Financial Performance Summary - The forecasted financial metrics for Dou Shen Education are as follows: - Revenue (in million yuan): 992.81 (2023A), 988.91 (2024E), 1427.18 (2025E), 2084.60 (2026E) - Revenue Growth Rate: -2.03% (2023A), -0.39% (2024E), 44.32% (2025E), 46.06% (2026E) - Net Profit (in million yuan): 31.60 (2023A), 129.89 (2024E), 209.67 (2025E), 322.21 (2026E) - Profit Growth Rate: 104.60% (2023A), 311.10% (2024E), 61.42% (2025E), 53.68% (2026E) - Diluted EPS (in yuan): 0.02 (2023A), 0.06 (2024E), 0.10 (2025E), 0.16 (2026E) [4][2]. Business Transformation and Strategy - Following the "double reduction" policy, Dou Shen Education has shifted its focus from traditional K12 education to non-subject quality education, live streaming sales, cultural tourism research, and traditional education informatization. The company is actively exploring new business models and expanding its service offerings [1][13]. - The company has successfully integrated live streaming into its business model, significantly increasing sales and user engagement. By leveraging platforms like Douyin, Dou Shen Education has developed a robust live streaming sales channel that enhances its educational offerings and cultural dissemination [30][33].