\u3000\u3 Bohai Water Industry Co.Ltd(000605) 098 Shanghai Action Education Technology Co.Ltd(605098) )
Event: in the past 21 years, the company achieved a revenue of 555 million yuan, an increase of 46.62% at the same time, a net profit attributable to the parent company of 171 million yuan, an increase of 60.05% at the same time, and a net profit of 150 million yuan after deduction of Non Profits, an increase of 48.55% at the same time. It is proposed to distribute a cash dividend of 84 million yuan, accounting for 49.38% of the net profit attributable to the parent company in 21 years. At the same time, it is proposed to increase 4 shares for every 10 shares to all shareholders with capital reserve.
Comments:
Management training and consulting revenue grew rapidly. Although Q1 and Q3 have been affected by repeated epidemics, the company has still achieved revenue of 555 million yuan in 21 years, with an increase of 46.62%, including management training revenue of 492 million yuan, with an increase of 48.88%, accounting for 88.61% of revenue, and management consulting revenue of 59 million yuan, with an increase of 35.02%.
The gross profit margin of management training increased. In the 21st year, the company's comprehensive gross profit margin increased by 0.25pct to 79.05%, of which the gross profit margin of management training business increased by 0.59pct to 83.62%, and the gross profit margin of management consulting business decreased by 6.61pct to 35.02%.
Sales expenses are well controlled. In the 21st year, the company's management expense rate increased by 1.18pct to 15.93%, the R & D expense rate increased by 1.18pct to 5.87%, the sales expense rate decreased by 1.40pct to 28.99%, and the financial expense rate increased by 0.68pct to - 3.20%.
High profits and improved profitability. In the past 21 years, the company achieved a net profit attributable to the parent company of 171 million yuan, an increase of 60.05% at the same time. Under the joint effect of the increase of gross profit margin and the decrease of sales expense rate, the net profit margin increased by 2.51 PCT to 31.15% at the same time, and the profitability was further improved.? Contract liabilities increased steadily. After the listing of the company, its influence has been further improved and its customer acquisition ability has become more and more significant. The market development was good, and the number of orders on hand promoted the continuous growth of performance. As of the end of 21, the contract liabilities were 776 million yuan, an increase of 20.91% at the same time.
Investment suggestion: the company's performance is in line with expectations, with high growth of revenue and profit, further improvement of profitability, and stable growth of contract liabilities. Optimistic about the company's competitive advantages in curriculum research and development, sales system and product positioning as the first listed company in management education in China, it is expected that the EPS of the company will be 2.70/3.53/4.48 yuan / share from 2022 to 24, and the current share price corresponds to PE of 17x / 13X / 10x, maintaining the "buy" rating.
Risk warning: the number of students does not meet the expectation, resulting in the company's income and profit not meeting the expectation; If covid-19 epidemic repeats locally, it will affect the course scheduling and registration of some courses, and have an impact on the operation and performance of the company.
