\u3000\u3 Bohai Water Industry Co.Ltd(000605) 098 Shanghai Action Education Technology Co.Ltd(605098) )
Event: the company’s revenue increased by 46.6% and the net profit attributable to the parent company increased by 60.1% in 2021. The company released its 2021 annual report. 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 profitability of the company was further improved. In 2021, the gross profit margin increased slightly by 0.2pcts to 79.0%, the sales expense rate decreased by 1.4pcts to 29.0%, and the management / R & D expense rate increased by 1.2pcts to 15.9% / 5.9%. To sum up, the net interest rate attributable to the parent company increased by 2.6pcts to 30.8% in 2021. In terms of profit distribution, the company plans to distribute a cash dividend of 1.5 yuan per share (including tax), and plans to increase 4 shares for every 10 shares to all shareholders with capital reserve.
The core business increased by two eyes, and the volume and price of management training increased at the same time. In 2021, the company’s management training business revenue increased by 48.9% to 492 million yuan, and the management consulting business revenue increased by 35.0% to 58.83 million yuan, both of which achieved rapid growth. In 2021, the company benefited from the improvement of market influence brought by listing, and the management training business grew brightly. In terms of the number of classes, the concentrated EMBA and principal EMBA in 2021 were opened for 39 / 11 periods respectively, which was higher than that in 2019 and 2020. In terms of price, concentrated EMBA / principal EMBA increased from 29800 yuan / 258000 yuan per person to 35800 yuan / 298000 yuan respectively in 2021, realizing the simultaneous increase of volume and price.
The sales side continued to expand the team size, and the R & D side launched Omo digital business school. By the end of 2021, the company’s sales staff had increased by 33.2% to 711. It is expected to continue to make efforts in customer access and customer service in 2022. On the R & D side, the company launched Omo digital business school in October 2021 to help customer enterprises establish Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated enterprise universities and professional talent training system. As a SaaS platform for enterprise universities, Omo digital business school has built a diversified layout of “training + consulting + SaaS platform”, lengthening the customer service cycle and further strengthening the company’s barriers.
In 2022, the course scheduling density increased, the advance receipts continued to grow, and the subsequent growth of the company has strong certainty. In 2022, the company increased the opening density of courses. As of February, the 59th and 436th periods of principal EMBA and concentrated EMBA have been opened respectively. From January to February 2022, a total of 5 periods of concentrated EMBA have been opened, and only 3 periods have been opened in the same period in 2021, effectively reducing the seasonal fluctuation of operation. At the end of 2021, the balance of contract liabilities of the company increased by 20.9% year-on-year to 776 million yuan, of which the advance receipts of management training business increased by 23.2% to 743 million yuan. Sufficient orders provided growth support for the company.
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 sales team is expanded, and the brand strength and user stickiness are improved. According to the company’s 2021 annual report, we maintain the forecast of the company’s net profit attributable to the parent from 2022 to 2023 of RMB 202 / 251 million, and predict that the company’s net profit attributable to the parent in 2024 will be RMB 308 million, an increase of 18.1% / 24.5% / 22.9% at the same time. The current price corresponds to pe19 / 15 / 13 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.
