Changes in Hong Kong stocks | Excellent Education Group (03978) rose more than 5%, annual net profit increased 1.1 times year-on-year, institutions say there is still room for flexibility in recovering the performance of education and training institutions

The Zhitong Finance App learned that Excellent Education Group (03978) rose by more than 5%. As of press release, it rose 5.28% to HK$4.19, with a turnover of HK$6.219,900.

According to news, recently, Excellent Education Group announced its results for the year ended December 31, 2024, with revenue of 1.102 billion yuan (RMB, same below), up 125.2% year on year; net profit of 192 million yuan, up 114% year on year; adjusted net profit of 193 million yuan, up 116.1% year on year; profit per share of 25.61 points; and plans to pay a final dividend of HK12.3 cents per share. According to reports, the main reason for the increase in revenue is that the quality transformation of the Group's business achieved excellent results in 2024. Quality products are well recognized by parents and students, and the number of students enrolled and tutoring hours increased significantly compared to the same period last year.

According to a research report released by Huaxin Securities, the education industry as a whole is currently in a state of rigid demand, clear supply, and mitigated policy risks. It is a good opportunity to reverse the predicament for leading enterprises with deep accumulation and successful business transformation in the industry, and has been initially verified since last year. There is still room for flexibility in recovering the performance of education and training institutions at this point; small and medium-sized enterprises have increased entry thresholds for the industry, and the competitive pattern is expected to be further concentrated on the head.