BESTSTUDY EDU (03978) surged over 4% today, rising 4.17% to HK$5.25 with a turnover of HK$14.58 million as of press time.

The rally followed the release of the company's first half 2025 results. According to securities analysts, BESTSTUDY EDU achieved revenue of 920 million yuan in H1 2025, representing a remarkable 188.9% year-over-year increase. Net profit attributable to shareholders reached 150 million yuan, surging 177.4% compared to the same period last year.

The company's revenue more than doubled in the first half, driven by several key factors: The quality of comprehensive education products and services continued to improve, leading to sustained growth in enrollment numbers and renewal rates. Market expansion efforts in Guangzhou, Shenzhen, and Foshan showed significant results, with localized curriculum and enhanced brand influence helping to expand market share. Additionally, the application of AI technology in teaching and marketing processes optimized workflows, while talent strategies ensured adequate teacher supply, further supporting business expansion.

Financial analysis reveals that the company's gross margin in H1 2025 remained stable at 45.0% year-over-year. On the expense side, sales expenses as a percentage of revenue decreased by 0.3 percentage points to 6.8%. Administrative expenses as a percentage of revenue fell by 0.4 percentage points to 12.5%, demonstrating initial success in cost control measures. However, other operating expenses increased by 1.4 percentage points to 5.9% of revenue, attributed to increased investments under the company's "ALL IN AI" strategy.

Overall, affected by the other operating expenses, the net profit margin declined slightly by 0.7 percentage points to 16.5% during the period. However, considering that the company is currently in a rapid expansion phase, the net profit margin remains within a controllable range, reflecting the company's superior cost and expense management capabilities.