\u3000\u3 Bohai Water Industry Co.Ltd(000605) 098 Shanghai Action Education Technology Co.Ltd(605098) )
Events
The company issued the performance express for 2021: the revenue in 2021 was 555 million yuan (+ 46.6%), the net profit attributable to the parent company was 171 million yuan (+ 60.1%), and the net profit not attributable to the parent company was 150 million yuan (+ 48.6%); EPS (basic) is 2.21 yuan / share (+ 30.8%), and ROE (weighted) is 19.46% (- 7.13pct). The non operating profit and loss in 2021 includes the income from changes in fair value arising from holding trading financial assets of RMB 184319 million.
Brief comment
The annual performance exceeded expectations and there were sufficient orders on hand. In 2021, the company’s revenue and net profit attributable to the parent company increased by 46.6% and 60.1% respectively, mainly due to the improvement of the company’s brand influence after listing, good market development and operation. By the end of September 2021, the company’s contract liabilities were 712 million yuan, an increase of 11.08% over the end of 2020 and 3.5% over 1h21. There were sufficient orders for management training and consulting business.
High base + repeated outbreaks in many places, and 21q4 revenue and performance still maintained rapid growth year-on-year. The year-on-year growth rate of revenue of 21q1 / Q2 / Q3 company was 103.0% / 68.8% / 26.7% respectively, and the year-on-year growth rate of net profit attributable to parent company of 21q1 / Q2 / Q3 was 149.3% / 49.4% / 78.5%. The revenue of 21q4 was 199 million yuan, an increase of 30.1% over the high base of 20q4; The net profit attributable to the parent company of 21q4 was 62 million yuan (+ 26.5%), and the growth rate of 21q4 in a single quarter decreased month on month, but it still maintained a rapid growth trend year-on-year, which was mainly affected by factors such as repeated offline outbreaks. Core courses continued to be upgraded, and the strategy of “one core and two wings” was steadily promoted. The company is deeply engaged in business administration training for entrepreneurs. The income of the 21-year core course “principal EMBA” accounts for about 48%, and the number of trainees in 21 years exceeds 1000; The curriculum of concentrated EMBA was upgraded in September 2021, and the tuition fee was adjusted to 35800 / person (24.3% increase). In December 2021, the company, together with Traut consulting and Huaying management, launched two new customized courses, which were officially launched. In addition, the company has gradually expanded its layout consulting business and capital investment. At present, a 200 million fund has been established, mainly for student companies with stable performance, low valuation, leading technology and great potential.
With continuous investment in digital consulting construction, Omo digital business school is expected to open up new development space. The company launched Omo digital business school in November 2021, forming offline “enterprise business school construction” and online “enterprise digital platform”, which is mainly to help large enterprises establish Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated enterprise universities and small and medium-sized enterprises establish professional talent training system. At present, nearly 100 enterprises, including Haida shares and shuanggun shares, have purchased this system; In 2022, the company plans to reach 1000 enterprises to purchase digital business schools.
Profit forecast: it is estimated that the revenue in 202123 will be 556, 710 and 883 million yuan, with a simultaneous increase of 46.5%, 28.0% and 24.4%; The net profit attributable to the parent company was 171, 216 and 260 million yuan, with an increase of 60.0%, 26.7% and 20.1% respectively; The corresponding PE is 24, 19 and 16 times, maintaining the “buy” rating. Risk warning: covid-19 epidemic situation is repeated, industry competition intensifies, and there is a risk of loss of excellent teachers
