\u3000\u3 China Vanke Co.Ltd(000002) 599 Beijing Shengtong Printing Co.Ltd(002599) )
Event: the company’s revenue increased by 17.9% in 2021, and the net profit attributable to the parent company turned loss into profit; In 2022q1, the revenue decreased by 17.2%, and the net profit attributable to the parent company changed from profit to loss. In 2021, the company’s revenue increased by 17.9% to 2.405 billion yuan, and the net profit attributable to the parent company was 67.61 million yuan, turning losses into profits year-on-year. In terms of splitting, the revenue of printing comprehensive service business increased by 9.9% to 1.984 billion yuan, and the gross profit margin increased by 0.6pcts to 16.9%; The revenue of science and technology education service business increased by 79.3% to 421 million yuan, and the gross profit margin increased by 14.5pcts to 34.3%. With the normalization of epidemic control, the gross profit margin has been significantly improved. The net loss of the subsidiary Lebo Lebo in 2021 was 32.82 million yuan, which was significantly narrowed compared with the loss of 139 million yuan in 2020. In 2022q1, the company’s expected enrollment and advance income from January to February were significantly better than that in 2019. However, due to the offline class elimination affected by the epidemic in some areas in March, the company’s revenue decreased by 17.2% to 513 million yuan, and the net loss attributable to the parent company was 24.81 million yuan, turning from profit to loss year-on-year.
Le Bo Le Bo strengthens the franchise management and control, and the Omo mode reduces the cost of getting customers. In 2021, the management and control system of Lebo Lebo franchisees of the company defined the investment promotion objectives and increased the evaluation indicators. More than 160 franchisees were added during the year. At the end of 2021, the liabilities of franchise collection contracts increased by 239.9% to 7.15 million yuan. In addition, the company built a middle platform, upgraded the Omo mode 2.0 online teaching service platform to deal with the impact of the epidemic, improved the company’s online ability in teaching and research, teaching, service, management and marketing, and reduced the operating cost of the campus. In terms of online business, Shengtong Education Group has realized cash flow profit in 2021q4, built offline customer acquisition channels, with a conversion rate of 40%, and effectively reduced the cost of customer acquisition. In the face of the current epidemic, the company also continues to upgrade courses, improve online delivery ability and resist the impact of the epidemic.
Expand to g / to B education business and strengthen the curriculum system. With the introduction of the “double reduction” policy, the company accelerated to g business expansion in 2021. The education group established the science and technology into campus business department, integrated the advantages of science and technology education, independently developed the education system including Siasun Robot&Automation Co.Ltd(300024) programming and science courses, and helped the construction of Science and technology campus. In terms of to B business, the company’s leyib carries out bionic camp, artificial intelligence camp and other businesses to provide more perfect services and products for b-end institutions. In 2021, the company’s to B / to G services achieved a revenue of 118 million yuan, with a year-on-year increase of 85.7%, accounting for 28.0% of the company’s science and technology education service revenue.
It is proposed to implement the fourth employee stock ownership plan to bind core employees. The company issued the fourth phase of the employee stock ownership plan (Draft) in March 2022. The total number of participants in the employee stock ownership plan includes 6 directors, supervisors and senior managers, and no more than 194 core managers and backbone personnel, with a total of no more than 15 million shares. The core employees are bound through the employee stock ownership plan. In addition, the company announced the repurchase plan in January 2022 and planned to repurchase 30-60 million yuan of shares for the implementation of equity incentive or employee stock ownership plan. As of April 15, the company had repurchased 3079300 shares.
Investment advice. The company has two main businesses: comprehensive publishing services and science and technology education services. As a leading enterprise in children’s programming in China, Lebo Lebo has a complete online + offline curriculum system for the ages of 3-18, and carries out the layout of the whole industry of programming education. Under the favorable quality education policy, the demand for children’s programming training is expected to be large, and Lebo Lebo is expected to fully enjoy the favorable policy. According to the company’s 2021 annual report and the first quarterly report of 2022, considering the impact of the epidemic, we expect the net profit attributable to the parent company to be RMB 124 / 214 / 268 million from 2022 to 2024, an increase of 83.3% / 73.0% / 24.9% at the same time. The current price corresponds to 19 / 11 / 9 times of PE, maintaining the “buy” rating.
Risk warning: risk of epidemic recurrence; Stricter training supervision policies; Intensified market competition; Franchisees control risks; The profit in the process of business development did not meet expectations
