Items:
The company recently announced its annual results for 2021: 1H21 achieved revenue of 1.238 billion yuan, an increase of 128.1% over the same period last year, net profit of 380 million yuan, an increase of 62.4% over the same period last year, and an adjusted net profit of 440 million yuan, an increase of 75.4% over the same period last year.
Comments:
Online education: Duxue Network, RTVU online and table drive the rapid growth of the company's revenue scale. The company's 1H21 achieved revenue of 1.238 billion yuan, an increase of 128.1% over the same period last year, mainly due to the merger of Duxue Network and RTVU online in December 2020 and January 2021. In the first half of 21, the company achieved 582 million yuan in revenue from distance education, teacher training and online courses, accounting for 47% of the revenue. At the same time, the company has stepped up the marketing of online education, and the rate of 1H21 sales expenses increased by 6.7% compared with the same period last year.
Campus education: income grew steadily, and the number of students increased by 14.3% compared with the same period last year. As of June 30, 2021, the total number of students in the company's 10 schools totaled 97000, an increase of 14.3% over the same period last year.
Among them, the number of undergraduates is 56100. In terms of tuition income, the annual group tuition income in the first half of 2021 was 610 million yuan, an increase of 17% over the same period last year; in terms of accommodation fees, the income from accommodation fees in the first half of 21 was 46 million yuan, an increase of 132% over the same period last year.
Construct the "Internet +" vocational education ecological system. The company is already the largest online vocational education group in China, with many online education platforms such as Radio and TV University online, Aopeng Education, Duxue Network, Minsheng online, Mutu.com and other online education platforms, covering online academic education, IT training and other directions. In July, 21, the company acquired a 51% stake in Xiaoai Technology, a human resources SaaS service company, and further laid out the human resources and employment services business, laying the foundation for building an integrated platform for recruitment and training in the future.
Profit forecast, valuation and investment rating: due to the better-than-expected development of the company's online education business and significant contribution, we have raised the company's 21-23 net profit forecast to 702x09xpx (original value of 5.41xpg 642px810 million), corresponding to EPS of 0.17lb 0.20lb 0.23 yuan (original value 0.13x0.15pxt). The current price corresponds to PE 5.6Compact 4.8ax 4.1 times, taking into account the company's historical valuation, combined with the company's industry status, the company is given a 21-year PE 10X~13X, corresponding to the target price of HK $2.02.60, maintaining a "recommendation"
Rating.
Risk hint: the progress of M & An is not as expected; the expansion and enrollment of the campus is not as expected; the risk of industry policy change.