\u3000\u3 Bohai Water Industry Co.Ltd(000605) 098 Shanghai Action Education Technology Co.Ltd(605098) )
Event:
The company issued its annual report for 2021.
Comments:
Brand drives market development, and there are abundant business orders
In 2021, the company achieved an operating revenue of 555 million yuan, a year-on-year increase of 46.62%, a net profit attributable to the parent company of 171 million yuan, a year-on-year increase of 60.05%, and a net profit not attributable to the parent company of 150 million yuan, a year-on-year increase of 48.55%. In the fourth quarter alone, the company realized an operating revenue of 199 million yuan, a year-on-year increase of 30.39%, and a net profit attributable to the parent company of 616935 million yuan, a year-on-year increase of 26.17%. Q4 revenue and profits rebounded month on month. First, due to the reduced impact of the epidemic, class scheduling gradually returned to normal; Second, the company's revenue itself has certain seasonal characteristics, and Q4 revenue is high. The gross profit margin of the company increased by 0.25pct to 79.05%, the net profit margin increased by 2.51% to 31.15%, and the net profit margin of Q4 was 31.24%. In terms of expense rate, in 2021, the sales expense rate decreased by 1.4pct to 28.99%, the management expense rate increased by 1.18pct to 15.93%, and the R & D expense rate increased by 1.18pct to 5.87%. The company continued to accelerate market development. By the end of 2021, the balance of contract liabilities of the company was 776 million yuan, with a year-on-year increase of 20.91%. The company had sufficient orders for training and consulting business, providing guarantee for the continuous growth of subsequent business volume and performance level.
Enrich the course content and improve the sales talent training system
In terms of management training business, the company iteratively updated the effective course content, and launched a new course in cooperation with Traut consulting, Huaying management and Guorui taxation in 2021 to meet the needs of enterprises and expand the brand influence through differentiated courses. In terms of management consulting business, the company launched the Omo digital business school platform to standardize and software the consulting business, extend the service link to enterprise customers, reduce the cost of enterprise software development and enhance customer stickiness. About 100 enterprises have purchased the system one month after the platform went online. In addition, the company continues to improve its sales network. In 2021, the number of sales personnel reached 711, an increase of 33% year-on-year, and established a training system including six modules to reserve sales talents for subsequent market development.
Investment advice and profit forecast
The company focuses on enterprise management training and management consulting, aims to build an effective business school, and accumulates core competitive advantages in brand, teachers and marketing. Digital business school products and investment business have achieved preliminary development and breakthrough, and are expected to bring new performance increment to the company's business in the future. We expect the company to realize a net profit attributable to the parent company of RMB 215 / 281 / 352 million from 2022 to 2024, eps2.5 million 55 / 3.33/4.18 yuan / share, corresponding to pe19x / 15x / 12x, maintaining the "buy" rating.
Risk tips
The number of lecturers cannot reach the expected number of courses, resulting in the risk of losing the number of lecturers and failing to carry out the courses
