Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company has successfully transitioned to quality education, which is expected to support revenue growth. In 2024, it achieved a revenue of 1.1 billion HKD, representing a year-on-year increase of 125.2%. The net profit attributable to the parent company was 190 million HKD, up 110.9% year-on-year [4][6]. - The company's contract liabilities at the end of 2024 were 600 million HKD, a year-on-year increase of 184.3%, which is anticipated to support revenue growth in 2025. The introduction of AI products is expected to enhance efficiency for both teachers and students [7]. Summary by Sections Financial Performance - In 2024, the company generated revenue of 1.1 billion HKD, with segments of quality education, full-time review, and tutoring contributing 710 million, 210 million, and 180 million HKD respectively, showing year-on-year growth rates of 411.7%, 1%, and 25.2% [6]. - The net profit for 2024 was 190 million HKD, with a lower growth rate compared to revenue due to adjustments in revenue structure leading to a decline in gross margin and an increase in sales and management expense ratios [6]. Future Projections - The company is projected to achieve revenues of 2.02 billion, 2.28 billion, and 2.54 billion HKD for the years 2025, 2026, and 2027 respectively, with corresponding net profits of 320 million, 380 million, and 420 million HKD [7][8]. - The expected price-to-earnings ratios for 2025, 2026, and 2027 are 9x, 8x, and 7x respectively, indicating a favorable valuation outlook [7][8]. Market Position - The company is recognized as a leader in K12 education in South China, successfully expanding its market presence in Guangzhou, Shenzhen, and Foshan. The increasing demand for education in the Greater Bay Area is expected to enhance its competitive position [7].
卓越教育集团（03978）：公司点评：合同负债支撑收入增长，素质教育版图持续扩张