China ma ry# leading private IT higher education service provider:Neusoft educationThree applied universities were established successively in Dalian, Chengdu and Foshan from 2000 to 2003. After 20 years, they have become the leading private IT higher education service provider in China, and established a "one body and two wings" education service ecosystem with full-time diploma higher education service as the basic business and continuing education service and educational resources and digital workshop as the two strategic business.
Rely onNeusoft GroupIT and health care are rich in professional resources: relying on the software company Neusoft Group (600718). SH) professional knowledge in software and IT services, the company has a deep foundation and industrial resources in IT training. In December 2019, the three undergraduate majors of computer Science and Technology, Software Engineering and Digital Media Technology of Dalian Neusoft Institute of Information were recognized by the Ministry of Education as the first batch of national first-class undergraduate professional construction sites. the number of approved ranked first among all private universities (including independent colleges) in the country.
The combination of industry and learning links schools and entity enterprises, and SOVO promotes entrepreneurship: from 2016 to 2020, Neusoft Education has a cumulative total of 318 industry-university cooperative education projects, far ahead of its peers. Under the complete incubation system of the school, more than 250 real companies and more than 1000 virtual companies are being incubated. The employment rate of students from 16 to 17 to 18 to 19 was 93.0%, 94.5% and 94.1%, respectively, which is much higher than the overall average level of higher education in China.
Internal extension, expansion has certainty: the company will expand the school capacity and increase the number of enrollment through the expansion and upgrading of the campus. Upon completion, it is estimated that an additional capacity of 20194 will be provided to the existing capacity of 38150. The company will increase the enrollment quota by setting up new majors and other forms, with a view to reaching 50,000 students within 4 years.
The first rating is a "buy" rating with a target price of HK $9. We estimate that the company's operating income from 2021 to 2023 will be 13.74 million 16.85 / 2.059 billion yuan, an increase of 24.9 percent over the same period last year, 22.6 percent and 22.2 percent respectively over the same period last year. The adjusted net profit was 3.06, 3.98 / 520 million yuan, an increase of 11.1%, 29.7% and 30.8% over the same period last year. The first rating covers a "buy" rating with a target price of HK $9, corresponding to a 10x PE in 2021 / 2022.
Risk hints: the number of students enrolled and tuition fees increased less than expected; the average employment rate and starting salary of college students decreased, university satisfaction decreased; the progress of the school expansion plan was lower than expected; changes in China's education policy.