2021H1 achieved a net profit of 33.09 million yuan, an increase of 245%2021H1 over the same period last year. The company realized a revenue of 175 million yuan / + 38%, a net profit of 33.09 million yuan / an increase of 225%, a non-return net profit of 8.25 million yuan / an increase of 138%, and received a 22.34 million income tax refund during the period. EPS is 0.04 yuan. 2021Q2, company revenue 94.8 million / + 38%, return net profit 25.5 million / reverse loss increase 244%, deduction non-return net profit 1.24 million yuan / reverse loss increase 107%, month-on-month Q1 income (+ 40%), return net profit (+ 260%) growth rate has narrowed, which is expected to be related to the low base in the same period last year and the spread of Q2 epidemic in some areas in 21 years.
The early education business recovered well, the overseas study training was still under pressure, and the profit margin improved well 2021H1. The revenue of Tianjin Meijem, a subsidiary of early education, reached 159 million yuan / + 180%, returning to 90% of the same period in 2019, and the net profit was 6849 yuan / + 295%, returning to 74% of the same period in 2019. During the period, 22 new early education centers (MeiJim / Little Jim) were added, with a total of 573 at the end of the period, and the Little Jim brand helped the sinking strategy. Kai de Education, a subsidiary of overseas study and training, achieved operating income of 9.65 million yuan /-53% during the period, returning to 13% of the same period in 2019, with a net profit loss of 3.38 million yuan (average profit in 2019), which is expected to be dragged down by the epidemic and tighter supervision. 2021H1, the company's gross profit margin is 69%, year-on-year + 21pct, net profit rate is 29%, year-on-year + 44pct, driven by the divestiture of manufacturing business and the recovery of early education business. During the period, the rate decreased by 15pct compared with the same period last year, in which the management / sales / R & D rate decreased by 15/4/3pct and the financial rate increased by 6pct.
There is no policy emotional suppression on the track for the time being, and the leader in the post-epidemic era is expected to lead the concentration increase in the first half of 2021. The Civil Promotion Law officially landed in the first half of 2021. The company's early education track business is relatively unregulated, and non-disciplinary education is not suppressed by policy worries for the time being. On the whole, early education business has steadily recovered after the epidemic, showing a recovery trend better than that of the industry as a whole. As the leader of the early education track, relying on the financial advantages of the platform of listed companies, the company is conducive to the integration of idle high-quality property resources and teacher resources in the industry after the epidemic, and is optimistic about the improvement of industry concentration in the post-epidemic period.
Risk tips: stricter policy supervision; slow recovery of store passenger flow; loss of educational management team, etc.
It is suggested that we should pay attention to the expansion of stores and the recovery of passenger flow, and maintain the "overweight" rating.
Taking into account the progress of epidemic prevention and control and the pace of store expansion, the company's EPS in 21-23 is expected to be 0.08pm 0.09max 0.13 yuan, corresponding to a valuation level of 63pm 52max 37x in 21-23. It is recommended to pay attention to the recovery of store passenger flow after the epidemic, the middle line to focus on the company's industry integration opportunities, to maintain the "overweight" rating.