\u3000\u3 Bohai Water Industry Co.Ltd(000605) 098 Shanghai Action Education Technology Co.Ltd(605098) )
Event: on March 16, 2022, the company released the annual report of 2021. In 2021, the company achieved operating revenue of 555 million yuan (YoY + 46.62%); The net profit attributable to the parent company was 171 million yuan (YoY + 60.05%). The gross profit margin of the company in 2021 was 79.05%, with a year-on-year increase of 0.25pcts. Quarterly observation shows that the revenue of Q4 in 2021 was 199 million yuan (YoY + 30.07%), and the net profit attributable to the parent company was 62 million yuan (YoY + 26.53%).
According to the observation of different sections, in 2021, the training business revenue was 492 million yuan (YoY + 48.88%), and the gross profit margin was 83.62%, an increase of 0.59 PCTs year-on-year; The consulting business income was 59 million yuan, (YoY + 35.02%), and the gross profit margin was 44.30%, a year-on-year decrease of 6.61 PCTs; Book sales achieved a revenue of 03.8 million yuan (yoy-0.41%).
In 2021, the company's sales, management and R & D expense rates were 28.99% (yoy-1.4pcts), 21.80% (YoY + 2.37pcts) and 5.87% (YoY + 1.19pcts) respectively. The change of expense rate was mainly affected by the increase in the number of employees and the increase in the average salary, the end of the policy of halving the insurance enjoyed, the increase in business publicity and the increase in the cost of curriculum R & D and production.
At the end of 2021, the contract liabilities increased by 8.99% compared with 2021q3, providing a stable guarantee for the growth of the company's performance. At the end of 2021, the company's contract liabilities (customer prepayment for training and consulting) were 776 million yuan, a year-on-year increase of 20.91%, an increase of 8.99% compared with Q3 in 2021 Shanghai Action Education Technology Co.Ltd(605098) business model is mainly business management training, so contract liabilities are an important early indicator of operating income. We believe that the carrying forward cycle of the company's current contract liabilities in history is four quarters. Therefore, the contract liabilities in this annual report indicate that the company has sufficient orders for training and consulting business and guaranteed stable growth of performance.
The company plans to carry out cash dividends and share conversion, and the liquidity at the transaction level will be significantly improved. The annual report shows that the company will distribute a cash dividend of 1.5 yuan per share (including tax) to all shareholders, with a total dividend of 127 million yuan; At the same time, the company plans to increase 4 shares for every 10 shares to all shareholders with capital reserve. As of the closing on March 16, 2022, the total share capital of the company was 84.34 million shares, including 21.09 million non restricted tradable shares; On April 21, 2022, the company will usher in the first lifting of the ban after listing. At that time, the number of non restricted circulating shares of the company will be increased to 31.4 million shares. Based on the share capital after the first lifting of the ban, after the conversion, the total share capital of the company will reach 118 million shares, the number of non restricted circulating shares will be increased to 43.96 million shares, and the stock liquidity of the company at the transaction level will be significantly improved.
There is a huge market demand for business training, Shanghai Action Education Technology Co.Ltd(605098) solve the "four pain points" of business training Shanghai Action Education Technology Co.Ltd(605098) can solve the four pain points of small and medium-sized private enterprises in business training. The company's value has not been fully explored: pain point 1: want to learn more practical skills and methods. Pain point 2: want to study business training courses at low cost. Pain point 3: get continuous counseling in the location of the company. Pain point 4: want to know what other entrepreneurs are learning.
Investment suggestion: Shanghai Action Education Technology Co.Ltd(605098) course is more effective and has more direct help to the improvement of enterprise benefits; There are a large number of small and medium-sized enterprises in China, and the demand for management training is extremely sufficient Shanghai Action Education Technology Co.Ltd(605098) entrepreneur ecosystem has taken shape. As the company's business scale and reputation continue to improve, it is expected to form a "snowball effect" in the future. In October 2021, the company launched Omo digital business school to help large enterprises establish Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated enterprise universities and help "specialized and special" small and medium-sized enterprises establish professional talent training system, which is expected to form positive support for performance in the future. The company is in a period of rapid development. Therefore, we predict that the net profit attributable to the parent company will be RMB 220 / 274 / 346 million from 2022 to 2023, with a year-on-year increase of 28.8% / 24.3% / 26.4%. The current market value corresponds to PE of 17x / 14x / 11x, maintaining the "recommended" rating.
Risk warning: it is difficult to carry out offline courses due to repeated outbreaks; Lecturer turnover risk.
