\u3000\u3 Bohai Water Industry Co.Ltd(000605) 098 Shanghai Action Education Technology Co.Ltd(605098) )
Event:
The company released the first quarterly report of 2022.
Comments:
In the first quarter, the performance increased significantly, and the number of orders on hand was sufficient
In the first quarter of 2022, the company achieved an operating revenue of 981373 million yuan, a year-on-year increase of 30.76%; The net profit attributable to the parent company was 7.968 million yuan, a year-on-year increase of 84.17%; Deduct the net profit not attributable to the parent company of RMB 5.2527 million, with a year-on-year increase of 32.85%. The gross profit margin of the company was 76.79%, with a year-on-year increase of 2.7pct. The rates of sales / management / R & D expenses were 39% / 26% / 7.96% respectively, with a year-on-year increase of + 0.98 / – 2.47 / + 0.09pct, and the expenses were well controlled. The balance of contract liabilities is 765 million yuan, and there are abundant orders for training and consulting business. In view of the impact of the epidemic, the follow-up company will flexibly adjust the opening area and increase the frequency of class scheduling in the second half of the year, which is expected to provide guarantee for the subsequent business volume and performance growth.
Increase the research and development of management training products and expand the new increment of Omo digital business school
In terms of offline training business, the company continued to strengthen the research and development of new products. In addition to the iterative upgrading of core courses, the company also customized the direction of new topics and introduced new mentors at the same time. In terms of online business, the company built the SaaS platform of Omo digital business school based on offline course training. In addition to providing the company’s own courses, the platform can precipitate the enterprise course content to the platform, reduce the cost of enterprise software development, iteratively optimize the own courses through the feedback content of the platform, prolong the customer service cycle and cultivate new business growth points. The company plans to set up smart management training bases in Shanghai, Beijing, Shenzhen, Changsha and Kunming to further radiate the national market.
Investment advice and profit forecast
The company has been deeply engaged in the field of enterprise management training and management consulting for many years, aiming to build an effective business school and accumulate core competitive advantages in brand, teachers and marketing. The SaaS platform and equity investment business of Omo digital business school have achieved preliminary development and breakthrough, and it is 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, corresponding to EPS of RMB 2.55/3.33/4.18/share and PE of 16x / 12x / 10x, maintaining the “buy” rating.
Risk tips
The epidemic has led to the risk that offline courses cannot be carried out, the number of course enrollment does not meet expectations, the loss of lecturers, intensified industry competition and so on.
