Benefit from the policy dividend, education central enterprises are ready to start.
On August 30, the company released its semi-annual report 2021. The annual revenue of 2021H1 is 147 million yuan, the net profit of YoY-27.18%; is 10 million yuan, and the net profit of YoY-67.95%; is 9 million yuan, YoY+286.87%. The company plans to pay 1.1 yuan cash dividend (including tax) for every 10 shares. The company's educational informatization and vocational education business layout has been initially completed, benefiting from educational informatization and vocational education policy dividends, and plans to further strengthen investment in mergers and acquisitions to optimize industrial layout in the future. It is estimated that the company's EPS in 2021-23 will be 1.03 yuan for 0.59 wind, which is 19.76 times that of the company's 21-year wind. Considering the improvement of the company's organizational efficiency and its resource advantage as a central enterprise, it will give the company 30 times PE in 21 years, raising the target price to 17.70 yuan and maintaining the "overweight" rating.
Focus on the main business of education, resulting in a substantial increase in educational income
The year-on-year revenue decrease of H1 in 2021 is mainly due to the completion of chemical asset divestiture in 2020, and H1 no longer includes chemical income. Excluding this impact, the income of the education sector increased by 61.42 million yuan, YoY71.51%. H1 deduction non-return net profit increased by 7.08 million yuan compared with 2.46 million yuan in the same period last year, mainly due to the confirmed investment income of 4.86 million yuan in Huasheng Jingshi in the current period. Ovia, the main body of the H1 education plate, has a revenue of 120 million yuan, while YoY+37.32%; has a net profit of 23.22 million yuan, YoY-3.62%. In October 2020, the company acquired a 27% stake in Huasheng Jingshi, a vocational education company, for 290 million yuan. In 2021, H1 Huasheng realized revenue of 135 million yuan and YoY+1.70%; realized net profit of 18.74 million yuan. YoY-29.93%, is mainly due to changes in the income composition of the current period and increased investment in research and development.
Adjust the organizational structure to improve efficiency and speed up the pace of investment mergers and acquisitions
In 2021, the H1 gross profit margin is 60.01% Magi YoYQing 21.67pct; the period expense rate is 67.48% Magna YoYue 23.42pct. The increase in gross profit margin and period expense rate is mainly due to the divestiture of chemical assets and the increase in the proportion of education income. In 2021, H1 company will increase its R & D investment, and the R & D cost will be 37.72 million yuan, YoY+41.11%. In the first half of the year, the headquarters completed the adjustment of the organizational structure, clarified the responsibilities of each business line of the headquarters, and improved the organizational efficiency by optimizing the departments and co-signing offices. The company's investment layout work closely revolves around the two tracks of educational informatization and vocational education to speed up the search and follow-up of investment targets. Set up an investment audit team at the company level and set up a capital operation department to highlight the function of investment mergers and acquisitions.
Benefit from the dividend of education informatization and vocational education policy, maintain the "overweight" rating we maintain the company's profit forecast, the company's 2021-23 net profit is expected to be 2.65max 3.47 / 458 million yuan, EPS is 0.59 shock 1.03 yuan. The average PE of the comparable company's 21-year wind is 19.76 times. Considering the improvement of the operating efficiency after the adjustment of the company's organizational structure and the more prominent resource advantage of the company as a central enterprise under the new education policy environment, the company is given 30 times PE in 21 years, corresponding to the target price of 17.70 yuan (the original target price is 14.75 yuan). Maintain the "overweight" rating.
Risk hints: education informatization and vocational education policy implementation uncertainty risk, market competition risk, goodwill impairment risk, M & An integration risk, epidemic risk.