\u3000\u3 Bohai Water Industry Co.Ltd(000605) 098 Shanghai Action Education Technology Co.Ltd(605098) )
Listed in 2021 to enhance brand influence, achieve high performance growth and maintain the “buy” rating
The company issued its annual report for 2021. In 2021, the company achieved an operating revenue of 555 million yuan, a year-on-year increase of 46.62%; The net profit attributable to the parent company was 171 million yuan, with a year-on-year increase of 60.05%, mainly due to the continuous improvement of brand influence, organization scale and business ability after the company was listed on the main board, and the abundant orders for management training and consulting business. We maintain the profit forecast for 20222023 and add the profit forecast for 2024. It is predicted that the net profit attributable to the parent company in 20222024 will be RMB 221 / 276 / 346 million respectively, the corresponding EPS will be RMB 2.62/3.27/4.11 respectively, and the corresponding PE of the current stock price will be 17.4/14.0/11.1 times respectively, maintaining the “buy” rating.
The management training courses have been continuously updated, and the profitability and contract liabilities have been steadily improved
The company is an effective business school that empowers small and medium-sized entrepreneurs. Its management training course research and development adheres to the principle of “continuous improvement”. At the same time, it uses multimedia, Internet and other mixed technical means to realize the real-time update of product content and the continuous improvement of product quality and teaching effect. In 2021, the revenue of management training business reached 492 million yuan, a year-on-year increase of 48.88%, with a rapid growth momentum; The gross profit margin reached 83.62%, up 0.59pcts year-on-year. In addition, we believe that the gross profit margin of the company has increased steadily, and the brand effect after listing helps to reduce the cost of getting customers (the sales expense rate has decreased by 1.40pcts year-on-year), the net profit margin of the company has increased to 31.15%, with a year-on-year increase of 2.51pcts, and the profitability has been continuously enhanced. More importantly, the contract liabilities of the company’s 2021 annual report reached 776 million yuan, an increase of 20.91% compared with the 2020 annual report and 12.79% compared with the 2021 semi annual report, indicating that the company has abundant orders for management training and consulting, strong growth momentum of subsequent performance and increasingly stable leading position in the management training industry.
Omo digital business school or tap more needs
In October 2021, the company launched the enterprise university SaaS platform, namely Omo digital business school, which aims to realize the deep integration of “offline enterprise university + online digital business school” of large enterprises, or is expected to tap the needs of enterprise digital transformation and realize the diversified layout of “training + consulting + SaaS platform”, which is conducive to lengthening the customer service cycle and exploring new growth space. At the same time, the company plans to distribute a cash dividend of 1.5 yuan per share (including tax) to all shareholders, and plans to increase 4 shares per 10 shares to all shareholders with capital reserve, or demonstrate the abundant cash flow of the company and pay attention to the feedback to shareholders.
Risk tips: changes in social training policies, repeated impact of the epidemic, loss of excellent teachers and other risks.
