\u3000\u3 Bohai Water Industry Co.Ltd(000605) 098 Shanghai Action Education Technology Co.Ltd(605098) )
Event: in 2021, the company’s revenue increased by 46.6% and the net profit attributable to the parent company increased by 60.1%, and the performance exceeded expectations. The company issued a performance express. In 2021, the revenue increased by 46.6% to 555 million yuan, the net profit attributable to the parent increased by 60.1% to 171 million yuan, and the deduction of non net profit increased by 48.6% to 150 million yuan. The revenue and performance exceeded our previous prediction. It is mainly due to the improvement of brand influence, good market development and operation, expansion of organization scale and sufficient orders for training and consulting business after the company’s listing in April 2021.
In 2022q1, the course density is increased, and the course system continues to be upgraded and iterated. By 2021q3, the company’s contractual liabilities had increased by 3.5% month on month to 712 million yuan, an increase of 11.1% compared with 641 million at the end of 2020. Sufficient orders provided growth support for the company. As of February 2022, the company’s core courses “principal EMBA” and “condensed EMBA” have completed the 59th and 436th classes respectively. In 2022q1, the company increased the frequency of classes in the off-season. From January to February 2022, the company opened five phases of concentrated EMBA, and only three phases were opened in the same period in 2021, effectively reducing the seasonal fluctuation of operation. In addition, the company joined hands with Traut (China) to launch new courses such as “strategic positioning” (action effectiveness program class) to enrich the company’s curriculum system.
The company’s business system advances layer by layer to strengthen customer stickiness. Based on short-term / long-term training courses, small classes and management consulting business, the company can extend the service cycle to a single enterprise customer to several years. In addition, the company independently developed SaaS platform and officially launched mobile digital business school in the second half of 2021, providing enterprises with a complete set of organizational learning solutions to further tap customer value.
The company’s marketing side continued to make efforts, and the sales team accelerated the expansion. After the company went public in 2021, it continued to make efforts in the marketing side, the sales team accelerated the expansion, and the offline channels have covered nearly 30 provincial capitals and economically developed cities in China, so as to strengthen market expansion and customer access and transformation. In terms of brand, the company’s successful listing has strengthened its brand influence and improved the number and quality of customers. In addition, the company promotes brand awareness through brand advertising, and actively holds “entrepreneur president’s Day” and other activities to create alumni circle, strengthen brand image and improve the re introduction and re purchase rate of students.
Investment advice. The company is committed to building an effective business school for small and medium-sized private entrepreneurs. The management training business has core advantages in R & D system, teachers and channel construction. After listing, the team capacity is expanded, the brand strength is further improved, the user stickiness is improved, and the development of one body and two wings is expected. According to the company’s 2021 performance express, we raised the company’s 2021 profit forecast to 171 million yuan (original 161 million yuan), and maintained the company’s 20222023 net profit forecast of 202 / 251 million yuan, an increase of 60.1% / 18.0% / 24.6%, and the current price corresponds to pe24 / 21 / 17 times, maintaining the “buy” rating.
Risk warning: changes in the economic situation affect the needs of enterprise management training; Intensified market competition; The profitability in the process of business development is less than expected; Risk of recurrence.
