\u3000\u3 Bohai Water Industry Co.Ltd(000605) 098 Shanghai Action Education Technology Co.Ltd(605098) )
In the first quarter, the year-on-year growth rate of operating revenue and net profit attributable to the parent company exceeded 30%, maintaining the “buy” rating
The company released the first quarter report of 2022. In 2022q1, the company achieved an operating revenue of 98.14 million yuan, a year-on-year increase of 30.76%, mainly due to the improvement of the company’s business ability and the sufficient number of management training and consulting orders; The net profit attributable to the parent company was 7.97 million yuan, a year-on-year increase of 84.17%; The net profit attributable to the parent company after non deduction was 5.25 million yuan, with a year-on-year increase of 32.85%. The non recurring profit and loss items mainly included the investment income of trading financial assets of 3.7 million yuan; Even under the influence of the epidemic in March, the company still achieved brilliant performance in 2022q1. The continuation of the epidemic may have an impact on the opening of classes and revenue recognition in 2022q2, but it does not change the long-term growth trend. We maintain the profit forecast for 20222024. 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 2.62/3.27/4.10 respectively, and the corresponding PE of the current stock price will be 15.3/12.3/9.8 times respectively, maintaining the “buy” rating.
The gross profit margin increased steadily, and the contract liabilities continued to grow, accumulating strength for the subsequent performance
As the leader of management training for small and medium-sized enterprises in China, the company is positioned as an effective business school, and its differentiated competitive advantage is becoming increasingly prominent. Or due to the price increase of concentrated EMBA course and the enhancement of brand effect after listing, the gross profit margin of 2022q1 company increased by 2.70pcts to 76.79% year-on-year. At the same time, relying on the listed dividend, the company’s business scale expanded rapidly; In order to keep up with the rapid development of business, the number of sales personnel and average salary of 2022q1 company increased, and the advertising of relevant brands increased, resulting in a slight year-on-year increase of 0.98pcts to 39.00%. In addition, the company’s contractual liabilities increased steadily, which accumulated strength for subsequent performance. As of March 31, 2022, the company’s contractual liabilities reached 765 million yuan, an increase of 16.08% compared with 659 million yuan as of March 31, 2021.
Lengthen the customer service cycle through “training + consulting + SaaS platform” and breed new growth points
In October 2021, the company launched the SaaS platform of enterprise university, namely Omo digital business school, which aims to help large enterprises establish Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated enterprise university, or tap the needs of enterprise digital transformation and contribute more performance increment. At present, the company has implanted this system in the consulting case of enterprise university. We are optimistic that the company will standardize the consulting based on this system, extend the service chain through “consulting + software” and create the second growth curve.
Risk tips: changes in social training policies, repeated impact of the epidemic, loss of excellent teachers and other risks.
