Event: the company's FY2022H1 revenue increased by 48.4%, and the adjusted return net profit increased by 32.0%.
The company's FY2022H1 income increased by 48.4% to 823 million yuan, net profit from return to mother increased by 52.5% to 251 million yuan, and adjusted net profit from return to mother increased by 32.0% to 264 million yuan (adjusting exchange gains and losses and equity incentive fees). FY2022H1, the company's gross profit margin slightly increased by 0.2PCTs to 50.2%; the sales expense rate also increased by 1.7PCTs to 2.8%, mainly due to the company's expenditure on expanding enrollment activities; and the management expense rate also increased by 4.2PCTs to 18.0%, mainly due to the increase in the salary of the company's additional administrative staff and senior management staff, as well as the increase in business development and other expenses. To sum up, the adjusted return net interest rate of the company also reduced 4.0PCTs to 32.1%. The company intends to pay an interim dividend of HK8.40 cents per share.
Both internal and external levels continue, and M & A projects further contribute to the increase. As of FY2022H1, the total number of students in the company's schools totaled 76300, an increase of 23.5% over the same period last year. From the split point of view, the enrollment of Chinese Business College / Chinese Business Vocational College increased by 6.8% 29.3% to 267,700 respectively; the number of students of Urban Vocational College / Urban technician College which completed the merger and acquisition in January 2021 increased by 10.8% 27.9% to 154,100 respectively; in addition, the number of students of Chinese Business Technical School which completed the merger and acquisition in February 2022 contributed 5200 students. In terms of tuition fees, the tuition fees of Chinese Business College, Chinese Business Vocational College and City Vocational College have all been increased, and the volume and price have continued to rise.
The strength of running a school has been further improved, and the cooperative effect of colleges and universities at home and abroad is remarkable. The company's Chinese Business College has added three new provincial first-class undergraduate professional construction sites in Guangdong, and since May 2021 it has become the first batch of private schools listed as the construction units for the award of master's degrees in Guangdong Province. the joint training of postgraduates with Guangdong University of Finance and Economics has been officially launched, and the follow-up project construction work is expected to be more smooth. The synergy effect of the company's nine colleges and universities at home and abroad continues to strengthen, the number of teachers and students participating in the overseas integration program increased from 115 in the autumn of 2020 to 5504 in the autumn of 2021, and the company's international school brand continues to improve.
The employment rate of graduates of the class of 2021 is outstanding. Nearly 500 graduates of the company's Chinese Business College have joined the world's top 2021 and China's top 100 enterprises, accounting for an increase of 0.7PCTs to 5% of the current graduates.
In addition, the employment rate of the graduates of the class of 2021 of the Chinese Business Vocational College is nearly 99%, and that of the urban vocational college is close to 95%. The employment rate and employment quality are both high, and the company's high-quality school-running has been reflected.
Investment advice. The company's schools enjoy the location advantages of Guangdong-Hong Kong-Macau Greater Bay Area and Chengdu-Chongqing Economic Circle, and actively expand the business of international education and vocational education, with excellent school quality driving high-quality growth. Based on the company's FY2022 report, we adjust the company's FY2022-2024 homing net profit forecast to RMB 636, 738 million, with an increase of 29.6%, 18.6%, 16.0%, corresponding to EPS 0.5, 0.59, and current price, which corresponds to PE 4-4-3, and maintains the "buy" rating.
Risk hints: the construction of the new campus may not be as expected; the speed of expansion is not as expected; the regulations on the implementation of the people's Promotion Law
Uncertainty of local implementation rules