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东软教育(09616)上市一周年:业务多点开花 估值抬升正当时

Neusoft Education (09616) one-year anniversary: business multi-point blossom valuation rise at the right time

智通財經 ·  Sep 29, 2021 09:29

A year ago, Neusoft Education (09616) landed in the capital market as the "first stock of IT higher education". Looking back on the past year, the overall education unit has experienced several twists and turns, showing a new atmosphere. Neusoft Education, which is in the midst of great changes, has always maintained the enterprising state of a top student, and the "report card" handed in in each performance period can exceed market expectations, which shows its robustness and growth.

Bochuan Campus of Dalian Neusoft Institute of Information

According to the data disclosed by Neusoft Education a few days ago, as of September 26 this year, Dalian College, Chengdu College and Guangdong College of the company's three universities have all opened, and have completed the registration of freshmen in 2021 University2022. At present, the number of applicants at the company's three universities has reached 14979, an increase of 17.4% from 12761 in the 2020 / 2021 academic year. According to statistics, as of September 26, the latest enrollment of the three universities totaled 45657, an increase of 15.8% over the 2020. 2021 academic year. The steady increase in the number of students further validates the influence of the company's brand and high market recognition. According to the mid-term results of Neusoft Education in 2021, the three universities of Neusoft not only achieved a good enrollment scale, but also further improved the quality of students. Among them, the highest scores of physics group and history group of Dalian College are 158 and 70 points higher than those of Liaoning Province, respectively, and the highest scores of science and liberal arts of Chengdu College are 120 and 39 points higher than those of Sichuan Province, respectively. The highest score of physics group and history group of Guangdong University is 78 and 46 points higher than that of Guangdong undergraduate control line, respectively. The continuous improvement of the quality of students once again proves that the quality of Neusoft education has been recognized.

Performance and freshman data are good news, and then look at the policy side is also frequently blowing warm wind. Zhitong Financial APP has learned that both the 14th five-year Plan and the 2021 Government work report have proposed to speed up the promotion of the digital strategy, and under this background, the talent gap of China's IT urgently needs to be made up. With the formal landing of the relevant policies of the regulations on the implementation of the Private Education Promotion Law, the participation of social capital in the development of vocational education has been more encouraged, and Neusoft education is expected to continue to benefit deeply in the future.

Business blossoms at multiple points, and educational resources export business volume.

In the year after Neusoft Education went public, the investment logic of the education industry has undergone earth-shaking changes. Although the stock prices of the underlying companies fluctuate sharply, there is no shortage of high-quality growth players who have been mistakenly killed during this period. Take Neusoft Education as an example, the company's performance since listing has continued the good trend of steady growth as always.

According to the financial report, Neusoft's education income in 2020 and the first half of this year reached 1.1 billion yuan (RMB, the same as below) and 597.9 million yuan respectively, an increase of 14.8% and 36.01% respectively over the same period last year. From the perspective of income structure, the company's business includes three parts: full-time higher education, continuing education and educational resources and digital workshop.

As the basic market of Neusoft education, the revenue of full-time diploma higher education business reached 470 million yuan in the first half of 2021, an increase of 37% over the previous year, accounting for nearly 80% of the company's total revenue. At the same time, as mentioned earlier, the number of students at the company's three universities also showed an increase in the same direction, with a total enrollment of 45657 students at the three universities as of Sept. 26, an increase of 15.8% over the same period last year.

According to the financial report, the number of places in the three universities of Neusoft Education all increased steadily in the 2021 academic year, with an increase of 1497 places, an increase of 10.2%, compared with the 2020 University. among them, the number of undergraduate and junior college places increased significantly, which further shows the improvement of Neusoft education talent training structure.

Continuing education, educational resources and digital workshop, as the key business under the company's "one body and two wings" strategy, have shown strong growth potential in recent years. Taking the performance in the first half of the year as an example, the income from continuing education was 58.255 million yuan, an increase of 33.4 percent over the same period last year, accounting for 9.7 percent of the income. The income from educational resources and digital workshops was 69.448 million yuan, up 31.8 percent from the same period last year, accounting for 11.6 percent of the company's total revenue.

Among them, it is particularly worth mentioning that Neusoft Education's educational resources business showed splendor in the first half of the year, with revenue surging by 104.4% to 31.915 million yuan during the period, becoming the company's largest growth segment of the business unit.

It is understood that Neusoft education continued to upgrade existing educational resources in the first half of the year, and newly developed education and teaching resources for nine emerging majors, including artificial intelligence, big data management and application, and intelligent science and technology, and carried out professional co-construction or co-construction cooperation with 69 colleges and universities, covering about 13289 students. During the period, the company sold 10 intelligent education platforms and 4 laboratory products to 12 institutions. As the follow-up company continues to increase the output of educational resources, the company's educational resources business is expected to continue to meet the expectations of high growth in the future, and may grow into a new growth pole of the company in the future.

Looking at the profit end, the adjusted net profit of the company in 2020 was 276 million yuan, an increase of more than 40% over the same period last year. In the first half of this year, the company achieved a gross profit of 257 million yuan, an increase of more than 60% over the same period last year, while the adjusted net profit was 143 million yuan, an increase of 41.5% over the same period

Neusoft's education performance is getting better and better, which is inseparable from the expansion of the company's business plate. The company's new campus of Dalian College took 14 months to complete and delivery, and the class of 2021 was ushered in in mid-September this year. The new campus of Chengdu College is progressing steadily, and the first phase of the project is expected to be completed this year, adding about 5000 beds. The first phase of the expansion project of Guangdong University is expected to be completed by the end of the year, when about 1700 beds will be added, while the second phase of the project started in August this year and is expected to be completed in the second half of next year, with an additional 2300 beds upon completion.

In addition, construction of Fujian Neusoft College (temporary name), jointly built by Neusoft Education and the Putian Municipal Government of Fujian Province, is also expected to begin within this year. According to public information, the school plans to cover an area of about 1637 mu, with a construction land area of about 998mu, and a planned construction area of about 290000 square meters in the first phase, which can accommodate nearly 10,000 students after completion.

It is also worth mentioning that the Neusoft Modern Industrial College of Meizhou Bay Vocational and Technical College, as the representative of the joint construction project of Neusoft Institute of Education and Technology, has begun to enroll students since the 2021 / 2022 academic year, offering five majors for the first time, with the number of freshmen reaching 947 and the enrollment rate as high as 96%. The foreign cooperation project is carried out as scheduled, which is expected to play a catalytic role in the release of the company's follow-up performance.

The market gave birth to new opportunities, and the valuation rose at the right time.

As mentioned above, although the performance meets the expectations of soundness and growth, due to changes in the investment logic of the industry, a number of high-quality underlying stock prices, including Neusoft Education, have been affected, and the company's good texture and growth expectations are not fully reflected in the stock price.

However, looking back at Neusoft's educational fundamentals, the company's "integrated" higher education business is developing steadily, while the potential of continuing education, educational resources and digital workshops in the "two wings" remains to be explained, among which the educational resources business is rising faster than expected. it is expected to grow into the company's next growth point.

With the continued release of performance, the value of Neusoft education has also been recognized by more institutions. In the second half of the year, a number of well-known securities firms at home and abroad have issued research reports, one after another raised the company's profit forecast and target stock price forecast for the next few years.

On July 16, Haitong issued Neusoft Education in-depth Research report "IT Education Leader Goose," one body and two wings "flapping its wings", giving the company a reasonable value range of 6.69-8.49 yuan per share, corresponding to 7.50-9.51 Hong Kong dollars per share, with a rating of "better than the big market". On August 10, Shenwan Hongyuan Securities issued a research report on "certainty and growth together", maintaining the company's target price of HK $12.7 and its "buy" rating. On August 31st, Guosheng Securities issued a research report entitled "Endogenous growth of higher Education Business and Rapid expansion of Educational Resources output", raising the company's 2021-2023 net profit forecast to 2.96,3.76 and 445 million yuan, an increase of 298.5%, 27% and 18.4%, respectively, and maintain the "buy" rating. On September 9, Guoxin Securities issued a research report on "one sound and two wings with high speed, focusing on high-quality growth", maintaining the company's reasonable valuation range of HK $9.98-10.56 and reiterating its "buy" rating.

The mainstream brokerages coincidentally look at the future of Dodong soft Education, which also reflects from the side that the current value of the company is undervalued by the market. Looking back on the year since the listing, the share price of the company has been dragged down by external factors. However, as mentioned above, at the national level at the current time node, social capital is encouraged to participate in the development of vocational education. Both the 14th five-year Plan and the 2021 Government work report have proposed to speed up the promotion of digital strategy, and the social demand for IT talents is high. At the same time, the implementation regulations of the Private Education Promotion Law also blow a "warm wind" to the private higher education industry.

Under the background of policy encouragement and the fact that the demand for social IT talents has not been effectively met, it is an excellent window for private higher education such as Neusoft Education to develop their skills. Considering that the company's business has blossomed in many places in recent years, the development has accelerated while the stock price has failed to match the true value, considering that it may be the best time to allocate Neusoft education stock, the company's value is revalued at the right time.

The translation is provided by third-party software.


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