\u3000\u3000 Shanghai Action Education Technology Co.Ltd(605098) (605098)
Event: in 2021, the company’s revenue increased by 37% – 45% and the net profit attributable to the parent company increased by 50% – 69%. The company issued the announcement of annual performance increase in 2021, and it is expected that the revenue will increase by 37.3% – 45.2% to 520-550 million yuan; The net profit attributable to the parent company increased by 49.9% – 68.7% to 160-180 million yuan; The non net profit attributable to parent deduction increased by 31.4% – 51.2% to 133-153 million yuan. The main reasons for the performance growth are: 1) the brand influence is improved after listing, and the market development and operation are good; 2) The company has expanded its organizational scale and sufficient orders for training and consulting business.
Management training business is intensive, and the growth of contract liabilities provides certainty of performance growth. The company’s core principal EMBA and concentrated EMBA have completed the 57th and 432nd classes respectively, and the pace of classes in 2021 has been significantly faster than that in 2019-2020. The company’s training and consulting business orders were sufficient. As of 2021q3, the company’s contract liabilities increased by 3.5% month on month to 712 million yuan, an increase of 11.1% compared with 641 million yuan at the end of 2020. With the students\’ class elimination, the growth and certainty of future performance are outstanding. The marketing team continues to expand and strengthen the company’s brand influence. After the company went public in 2021, it continued to make efforts in the marketing end, the sales team accelerated the expansion, and the offline channels have covered nearly 30 provincial capitals and economically developed cities in China, so as to strengthen market expansion and customer access and transformation. In terms of brand, the company’s successful listing has strengthened its brand influence and improved the number and quality of customers. In addition, the company promotes brand awareness through brand advertising, and actively holds “entrepreneur president’s Day” and other activities to create alumni circle, strengthen brand image and improve the re introduction and re purchase rate of students.
Develop the SaaS platform of mobile digital business school to extend the customer service cycle. The company’s business system advances layer by layer to strengthen customer stickiness. Based on short / long-term training courses, small classes and management consulting business, the company can extend the service cycle to a single enterprise customer to several years. In addition, the company independently developed the SaaS platform and officially launched the mobile digital business school in the second half of 2021 to provide enterprises with a complete set of organizational learning solutions to further tap customer value and enhance customer stickiness.
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 team capacity is expanded, the brand strength is further improved, the user stickiness is improved, and the development of one body and two wings is expected. According to the company’s performance forecast for 2021, we maintain the company’s net profit attributable to the parent company from 2021 to 2023 at RMB 161 / 202 / 251 million, an increase of 51.0% / 25.5% / 23.9% at the same time, and the current price corresponds to pe30 / 24 / 20 times, maintaining the “buy” rating.
Risk tip: changes in the economic situation affect the needs of enterprise management training; Intensified market competition; The profitability in the process of business development is lower than expected; Risk of recurrence.
