\u3000\u3 Bohai Water Industry Co.Ltd(000605) 098 Shanghai Action Education Technology Co.Ltd(605098) )
Event: the company’s 2022q1 revenue increased by 30.8% and the net profit attributable to the parent company increased by 84.2%. The company’s 2022q1 revenue increased by 30.8% to 98.14 million yuan, the net profit attributable to the parent increased by 84.2% to 7.97 million yuan, and the non net profit attributable to the parent increased by 32.9% to 5.25 million yuan. The first quarter was the off-season of the company’s business. In 2022q1, the company’s gross profit margin increased by 2.7pcts to 76.8%, the sales expense rate increased by 1.0pct to 39.0%, the management expense rate decreased by 2.5pcts to 26.0%, and the R & D expense rate increased slightly by 0.1pcts to 8.0%. To sum up, the net profit margin attributable to the parent company increased by 2.4pcts to 8.1% at the same time.
From January to February in 2022, the class scheduling density increased significantly, and the class starting in March was affected by the epidemic. In 2022q1, the company increased the density of classes in the off-season. From January to February 2022, the company opened five periods of concentrated EMBA, and only three periods in the same period in 2021, effectively reducing the seasonal fluctuation of operation. As of February 2022, the core courses principal EMBA and concentrated EMBA had completed the 59th and 436th periods respectively. In March, affected by the local epidemic situation, including Shanghai, the company’s class scheduling slowed down. As of 2021q1, the balance of contract liabilities of the company was 765 million yuan, a decrease of 1.4% compared with the end of 2021. The management training service provided by the company has flexible course scheduling and sufficient production capacity of teachers. After the epidemic is effectively controlled, it is expected to improve the course scheduling density. With the elimination of courses by students, the contract liabilities can be converted into operating revenue, so as to support the subsequent growth of the company.
The sales side continued to make efforts, and the sales team realized capacity expansion. 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. Offline channels have covered nearly 30 provincial capitals and economically developed cities in China. The successful listing of the company in 2021 has strengthened its brand strength, improved its brand awareness among potential customers, and further strengthened its brand image through brand advertising.
Research and develop Omo digital business school to effectively prolong the customer service cycle. In October 2021, the company launched Omo digital business school to help customer enterprises establish Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated enterprise university 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.
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 first quarterly report in 2022 and considering the impact of the epidemic, we adjusted the company’s forecast of net profit attributable to the parent company in 2022 to 182 million yuan (the original 202 million yuan), and maintained the company’s forecast of net profit attributable to the parent company from 2023 to 2024 to 251 / 308 million yuan, an increase of 6.7% / 37.6% / 22.9% at the same time. The current price corresponds to pe19 / 14 / 11 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.
