\u3000\u30 Fawer Automotive Parts Limited Company(000030) 32 Jiangsu Chuanzhiboke Education Technology Co.Ltd(003032) )
Event:
1. The company announced in the 2021 annual report that the operating income was 660 million yuan, yoy + 3.8%, the net profit attributable to the parent was 76.84 million yuan, yoy + 18.1%, and the non net profit was 49.04 million yuan, yoy + 25.5%; A cash dividend of 0.19 yuan will be distributed for every 10 shares, and a cash dividend of 7.7 million yuan is expected to be distributed.
2. The company announced that in the quarterly report of 2022q1, the operating revenue was 160 million yuan, yoy + 12.9%, the net profit attributable to the parent was 19.09 million yuan, yoy + 193.8%, and the non net profit was 13.04 million yuan, yoy + 500%.
Key investment points:
The performance in the second half of 2021 was repeatedly affected by the epidemic. ① On the revenue side, the revenue in 2021 was 660 million yuan, Q1 / Q2 / Q3 / Q4 were 1.4/1.6/1.9/170 million yuan, yoy-6.1% / + 42.6% / + 5% / – 12.5%. By business, in 2021 Wuxi Online Offline Communication Information Technology Co.Ltd(300959) short-term training was 620 million yuan (YoY + 4.7%), non academic higher education was 29.42 million yuan (yoy-12.1%), and other businesses were 12.46 million yuan (YoY + 1.8%); In terms of sub regions, the revenue of East China / South China / North China / Central China / West China in 2021 was 150 / 1.2 / 2.8 / 0.9 / 0.20 billion yuan respectively, yoy + 9.4% / + 7.1% / – 3.8% / + 15.7% / + 7.3%, accounting for 23% / 19% / 42% / 14% / 3%. ② In terms of cost and gross profit, the operating cost in 2021 is 340 million yuan (yoy-3.5%), which is mainly composed of 230 million yuan of employee compensation (yoy-6.5%, accounting for 34.7% of revenue), 80 million yuan of leasing, depreciation and amortization (yoy-4.2%, accounting for 11.8% of revenue), etc; The gross profit margin in 2021 was 48.8%, up 3.9 PCT year-on-year from 2020, still 0.5 PCT lower than the highest point in 2019. ③ On the expense side, in 2021, the sales expense was 100 million yuan (yoy-1.3%), and the sales expense ratio was 15.7% (yoy-0.8pct), of which the employee salary was 70.52 million yuan (YoY + 15.6%, accounting for 10.6% of the revenue), mainly due to the year-on-year increase of 80 to 430 marketing personnel (YoY + 22.9%) and 23.59 million yuan (yoy-33.2%, accounting for 3.6% of the revenue) at the end of 2021. In 2021, the management expense was 78.31 million yuan (YoY + 4.3%), and the management expense rate was 11.8% (year-on-year + 0.1pct). In 2021, the R & D expense was 75.25 million yuan (YoY + 1.4%), and the R & D expense rate was 11.3% (yoy-0.3pct), of which the employee salary was 67.06 million yuan (yoy-3.18%, accounting for 10.1% of the income). In 2021, the total number of teaching and research personnel of the company decreased from 127 to 951 (yoy-11.8%), accounting for 60% of the total number of employees. In 2021, the company’s financial expenses were 14.36 million yuan (YoY + 283.6%), mainly due to the implementation of the new leasing standards. ④ On the profit side, the net profit attributable to the parent company in 2021 was 76.84 million yuan, and the net interest rate attributable to the parent company was 11.6%, a year-on-year increase of + 1.4pct, which has not yet returned to the level of about 20% in 20172019; Quarterly, the net profit attributable to the parent company in 2021q1 / Q2 / Q3 / Q4 is 650 / 1963 / 3744 / 13280000 yuan respectively, yoy + 376.6% / 169.1% / – 16% / – 74.1%, and the net profit attributable to the parent company is 4.7% / 11.9% / 20.1% / 7.6% respectively. Non recurring profit and loss is 27.81 million yuan, mainly including financial income (20.62 million yuan).
2022q1 started well. Since late March, the epidemic situation in East China and other regions has been repeated, and the follow-up impact of the epidemic still needs to be observed. In 2022q1, the revenue reached 160 million yuan (YoY + 12.9%), mainly driven by the increase in the number of applicants for employment classes. Judging from the increase in the balance of contract liabilities (240 million yuan, yoy + 35.5%, an increase of 38.9% over the end of 2021) and the cash received from the sale of goods and the provision of labor services (230 million yuan, yoy + 63.3%), the enrollment season after the Spring Festival is relatively vigorous, but the subsequent rhythm of income recognition still needs to observe the control of this round of epidemic. The gross profit margin of 2022q1 is 54% (year-on-year + 11.3pct, month on month + 5.4pct), reflecting the improvement of teaching human efficiency and classroom utilization. The sales expense rate was 20.3% (YoY + 4.8pct, mom + 3.7pct), the management expense rate was 12.3% (YoY -1.9pct, mom -0.8pct), and the R & D expense rate was 10% (YoY -3.7pct, mom -1.7pct). The net interest rate attributable to the parent company in a single quarter was 12.2% (year-on-year + 7.5pct, month on month + 4.5pct), but there was still a certain gap compared with 20.1% in 2021q3. By the end of 2022q1, the balance of the company’s cash on hand (monetary capital and trading financial assets) was 1.31 billion yuan.
Profit forecast and investment rating: we adjusted the company’s net profit attributable to the parent company from 2022 to 2024 to 1.3/1.5/180 billion yuan, corresponding to EPS of 0.31/0.38/0.45 yuan and PE of 43 / 35 / 30x. The recurrence of the epidemic has affected the rhythm of the company’s performance recovery, but the core competitiveness of the company’s curriculum research and development + dual training + high employment rate, as well as the precipitation of brand and reputation in the field of IT training have not changed. There is plenty of cash in hand, and it academic education is expected to be held through mergers and acquisitions or self construction in the future. In terms of policy, the newly revised vocational education law has been implemented since May 1, reflecting the high attention paid by the state to vocational education. Based on the above, maintain the “buy” rating.
Risk tips: public health event risk, macroeconomic risk, risk of intensified industry competition, risk related to controlling shareholders, risk of loss of core personnel, risk that expansion progress does not meet expectations, risk that profitability does not meet expectations, policy risk, risk of decline in demand in IT industry, etc.
