Gaotu(GOTU) 第一上海证券·2024-12-11 10:04Investment Rating - The report assigns a "Buy" rating for the company with a target price of $4.40 [2][6]. Core Insights - The company continues to experience high revenue growth, with a projected revenue increase of 51.2% for FY24 and 28.1% for FY25, despite short-term profit pressures due to ongoing investments in expansion [2][6]. - The K9 business segment shows significant growth, with comparable cash collections increasing over 200% year-on-year, while the K12 business remains dominant, contributing over 75% of total revenue [2][6]. - The company anticipates a revenue growth rate of 69.2%-71.9% for FY24Q4, with total revenue expected to reach between 12.88 billion and 13.08 billion yuan [2][6]. Financial Overview - For FY24Q3, the company reported a revenue of 12.08 billion yuan, reflecting a year-on-year increase of 53.1% [2][6]. - The non-GAAP operating loss for FY24Q3 was 4.76 billion yuan, indicating an increase in losses compared to previous periods [2][6]. - Cash reserves grew by over 67.2%, reaching 33.1 billion yuan, with no interest-bearing debt [2][6]. Business Segment Performance - The K9 business segment's revenue grew by over 100% year-on-year, while traditional adult and university student services faced pressure, with revenue growth remaining flat [2][6]. - The company is actively expanding its offline teaching network, currently operating nearly 150 teaching points across the country, which is expected to enhance operational efficiency and profitability in the long term [2][6]. Future Projections - The company expects to narrow its adjusted net loss significantly to 2.1 billion yuan by FY25, with profitability anticipated by FY26 [2][6]. - The report highlights a projected revenue of 5.73 billion yuan for FY25, with a continued focus on balancing growth and profitability [2][6].