\u3000\u3 Bohai Water Industry Co.Ltd(000605) 098 Shanghai Action Education Technology Co.Ltd(605098) )
China's "first share" of management education focuses on the acceleration of management training performance. The company is mainly engaged in business management training, business management consulting and equity investment. In April 2021, the company landed in the capital market and became the "first share" of China's management education. Management training is the core business of the company. It mainly provides concentrated EMBA, principal EMBA and other courses for entrepreneurs, directors and supervisors, and provides effective management training services for them. At the same time, the company actively develops the management consulting business, realizes the standardization, digitization and systematization of the consulting business by building the enterprise university SaaS platform, and helps the consulting business regain growth. Focusing on the management training business, the company launched the Omo digital business school, which gave new impetus to the growth of management training business. In 2021, the company's operating revenue increased by 46.62% year-on-year, the net profit attributable to the parent company increased by 60.05% year-on-year, and the contract liabilities increased by 20.91% year-on-year. It is expected that the company's performance is still expected to maintain rapid growth in 2022. At the same time, the profitability of the company was enhanced and the gross profit margin increased steadily. From 2019 to 2021, the company's gross profit margin was 75.72%, 78.80% and 79.05% respectively, and the net profit margin was 27.74%, 28.64% and 31.15% respectively. With the continuous enhancement of scale effect, the company's gross profit margin and net profit margin still have room for improvement.
The "one core and two wings" strategy was launched to build a "world-class effective business school". The company has formulated the development strategy of "one core and two wings" to build a "world-class effective business school". "One core" is the core business of the company. It focuses on entrepreneur business administration education, deeply cultivates enterprise management training, adheres to the service concept of "one meter wide and one thousand meters deep", improves customer value through management empowerment, and continues to expand and strengthen management training business. At the same time, the company's deep cultivation of the main business of management training will bring two spillover effects: management consulting business and equity investment business, which are the "two wings" of the company's development. The company's management consulting business mainly includes general management consulting business and incubator business, focusing on solving various operation and management problems encountered in the development of enterprises. The company is committed to promoting the standardization of consulting business. In September 2021, the company launched the enterprise university SaaS platform and created an online learning platform for all staff learning. In the future, the service chain will be extended with "consulting + software", and the consulting business is expected to regain growth. The company's equity investment business mainly focuses on the pre IPO of student enterprises. In November 2021, the company established a private equity investment fund to invest in student enterprises with stable performance, low valuation, leading technology and great potential, accompany the growth of high-quality students and enhance the performance flexibility of the company.
Launch Omo digital business school to create a second growth curve. In November 2021, the company launched Omo digital business school, which is an enterprise training system integrating online enterprise university platform and offline business school system. It adopts the "1 + 1 + 1" integration mode to provide enterprises with an integrated management scheme of "platform + content + management". Omo digital business school implements 90 day employee life cycle management, constructs an intelligent "learning, training, examination and competition" scene, realizes the company's management training business from online to offline, from high-level to grass-roots level, truly realizes the enterprise management training for all employees, and expands the company's management training product line. The scale of the management training market has exceeded 100 billion, and the online training market has increased sharply against the trend. The launch of the company's Omo digital business school products will help to create the company's second growth curve. Omo digital business school implements the platform subscription fee system and charges additional fees according to customer needs. In 2021, Omo digital business school will sell about 100 orders, which is expected to become the second growth curve of the company in the next 3-5 years.
National layout + regional deep cultivation and strengthening R & D have significant advantages. Adopting the development strategy of "national layout + regional deep cultivation", the company has set up subsidiaries in Beijing, Shanghai and other cities, and branches in Nanjing, Wuhan and other cities, forming a service and marketing network covering the whole country. At the same time, the company achieved regional deep cultivation by encrypting the existing business area. In 2021, the company added 177 new sales personnel, 80% of which were used to encrypt the existing business area, and the market development was in good condition. The company pays attention to talent training and the blessing of famous teachers. The company has established a perfect salary system and performance management system to introduce, train, make good use of and retain talents; The company has a team of full-time lecturers, visiting professors, part-time famous teachers and other effective teachers, which ensures the effectiveness of the company's enterprise management training courses and brings substantial benefits to the enterprises participating in the training. The company attaches great importance to R & D and has established a systematic curriculum R & D team, including teaching, promotion and R & D experts. From 2019 to 2021, the company's R & D investment was 17.21 million yuan, 17.73 million yuan and 32.58 million yuan respectively, and the proportion of R & D investment in operating revenue was 3.92%, 4.68% and 5.87% respectively. The new orders signed by the company reached a new high, and the growth momentum in the future is full. From 2019 to 2021, the newly signed orders of the company were 504 million yuan, 486 million yuan and 689 million yuan respectively, and the newly signed orders per capita were 730000 yuan, 910000 yuan and 97000 yuan respectively, which enhanced the momentum of the company's future development and helped the rapid release of performance.
Valuation and investment advice: management training "first share", maintain the "Buy-A" rating. It is estimated that the operating revenue of the company will increase by 29.36%, 24.94% and 21.90% year-on-year from 2022 to 2024; The net profit attributable to the parent company increased by 29.78%, 22.72% and 20.10% year-on-year; EPS is 2.63 yuan, 3.23 yuan and 3.87 yuan respectively, dynamic PE is 16.97 times, 13.82 times and 11.51 times respectively, and dynamic Pb is 2.99 times, 2.53 times and 2.15 times respectively. As the "first share" of A-share market management training, the company is committed to growing into a "world-class effective business school". With the strategy of "one core and two wings", the company focuses on management training business, launches Omo digital business school, realizes the integrated development of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) training business, and constructs a full staff training system from directors and supervisors to middle and grass-roots level; The consulting business is committed to standardization, digitization and software, and launched the "enterprise university SaaS" platform to grow the industrial chain through "consulting + software" and help the consulting business regain growth; The equity investment business mainly focuses on the pre IPO of student companies, focusing on companies with low valuation, fast growth and good prospects, so as to enhance the flexibility of future performance. Optimistic about the development prospect of effective management training and the future growth of the company, maintain the company's "Buy-A" rating, with a target price of 78.85 yuan, corresponding to about 30 times of dynamic PE in 2022.
Risk tips: repeated epidemics cause risks such as slow course elimination, intensified industry competition, lower than expected market development, loss of excellent teachers, and lower than expected penetration and delivery rate of Omo digital business school.
