Investment Rating - The investment rating for the company is maintained as "Buy" [1]. Core Views - The report emphasizes the ongoing adjustments in the study abroad business while highlighting the growth supported by the quality education and training sector [1][7]. - The company is expected to generate revenue of 1.225billioninQ3FY25,reflectingayear−on−yeargrowthof1.51.111 billion, a 21% increase [4]. - The report anticipates a decline in net profit attributable to the parent company, projected at 91million,down13.2310 million, a 16.6% increase, but down 30.1 percentage points from the previous year [5]. - The high-end one-on-one training segment faces challenges due to its premium pricing, and the demand for studying abroad is returning to normal after a surge due to the pandemic [5]. New Business Growth - New business segments, including K9 quality education and learning machine services, are expected to see a 37% year-on-year revenue growth, reaching 332million[6].−Thecompanyplanstoexpanditsserviceofferingstomeetdifferentiateddemandsinprimaryandsecondaryeducation,whichisexpectedtodriverapidgrowthinnewbusiness[6].FinancialProjections−RevenueforecastsforFY25−FY27havebeenreviseddownto4.96 billion, 6.02billion,and7.34 billion, respectively, due to the slowdown in the high-margin study abroad business [7]. - Non-GAAP net profit estimates for FY25-FY27 have also been adjusted to 454million,534 million, and 636million,respectively[7].−TheDCFtargetpricehasbeenloweredto74.8, corresponding to a PE ratio of 17.3 for FY25 and a PEG ratio of 0.93 [7]. Financial Data - The company’s revenue for FY25 is projected at 4.959billion,withayear−on−yeargrowthrateof14.96454 million, reflecting a growth rate of 19.21% [11]. - The company’s cash and bank deposits are projected to increase to $2.021 billion by FY25 [12].
