Neusoft Education releases 2021 results. In 2021, the company's revenue was 1.363 billion yuan, up 23.9% from the same period last year; gross profit was 591 million yuan, up 40.5% from the same period last year; gross profit margin was 43.4%, up 5.1 pct; net profit from home was 284 million yuan, up 282.8% from the same period last year; adjusted net profit was 309 million yuan, up 36.9% from the same period last year; and the adjusted net profit rate was 24.1%, down 1pct from the same period last year.

Brief comments and investment suggestions:

1. Revenue in 2021 was 1.36 billion yuan, an increase of 23.9% over the same period last year.

(1) "one body and two wings" business income: in 2021, the company's business income is respectively: ① full-time higher education income of 1.03 billion yuan, an increase of 27.9%, accounting for 75.2%; ② continuing education income of 130 million yuan, an increase of 6.7% over the same period last year, accounting for 9.7%, of which 2C training income is about 44 million yuan, 2B training fee income is about 21 million yuan The income of ③ educational resources and digital workshop was 210 million yuan, up 18.0% from the same period last year, accounting for 15.1%, of which the business income from educational resources was 140 million yuan, up 51.5% from the same period last year, accounting for 10.3%. The income from digital workshop business was 70 million yuan, down 20.1% from the same period last year, accounting for 4.8%. The business of educational resources is growing rapidly, and the company has carried out professional co-construction or industrial college co-construction cooperation with 73 colleges and universities, including 31 industrial colleges and nearly 300 projects. the income of professional co-construction and industrial colleges in 2021 is about 50 million yuan. The income of intelligent education platform and teaching content, experimental and training room solutions is about 70 million yuan.

(2) the number of students in school: as of December 30, 2021, there were 45618 students in full-time higher education, an increase of 16.2% over the same period last year, and 32379 students in continuing education, an increase of 33.3% over the same period last year.

(3) number of places: the number of places in 2021Universe 2022 increased by 1497 compared with 2020Universe 2021, with an overall increase of 10.2%, with the most significant increase of 198.4% for junior college students.

(4) School capacity and utilization: as of December 30, 2021, Dalian College has expanded its capacity from 5600 to 22443, Chengdu College has expanded its capacity from 3992 to 16870, and Guangdong College has a campus capacity of 11663.

The utilization rate of the three universities is 75.3%, 96.1% and 107.3% respectively, and Chengdu and Guangdong colleges are better.

Risk tips: epidemic risk, slow promotion of new business risk, industry competition risk.