Neusoft Education issued the 2022 half-yearly results announcement. 1H22's revenue was 744 million yuan, up 24.4% over the same period last year; gross profit was 350 million yuan, up 35.7% over the same period last year; gross profit was 47.0%, up 3.9pct; net profit from home was 233 million yuan, up 114.7% from the same period last year; adjusted net profit was 232 million yuan, up 89.5% from the same period last year; and adjusted net interest rate was 31.2%, up 7.4pct over the same period last year.
Brief comments and investment suggestions:
1.1H22 revenue was 740 million yuan, up 24.4% from the same period last year.
(1) "one body and two wings" business income: 1H22 Company's business income is respectively: ① full-time higher education income 580 million yuan, an increase of 23.4%, accounting for 78.0%; ② continuing education income of 66 million yuan, an increase of 13.5% over the same period last year, accounting for 8.9%, of which 2C training income is about 22 million yuan, 2B training fee income is about 5 million yuan The income from ③ educational resources and digital workshops was 97 million yuan, up 40.0 percent from the same period last year, accounting for 13.1 percent, of which the business income from educational resources was 69 million yuan, up 115.9 percent from the same period last year, accounting for 9.3 percent. The business income from digital workshops was 28 million yuan, down 24.6 percent from the same period last year, accounting for 3.8 percent. The business of educational resources is growing rapidly. 1H22 has carried out professional co-construction or industrial college co-construction cooperation with 65 colleges and universities, of which more than 3x4 are public colleges, with more than 250 professional co-construction projects, with an income of about 36 million yuan. The total income of intelligent platform, teaching content and training room is about 29 million yuan, an increase of 264.3% over the same period last year.
(2) the number of students in school: as of June 30, 2022, there were 45492 full-time higher education students, an increase of 16.4% over the same period last year, of which Dalian / Chengdu / Guangdong College each increased by 17,000 / 16,000, up by 9% / 24% and 18% respectively. It is expected that the number of new students will further increase after the completion of enrollment in the 2022ap2023 academic year. The total number of students in continuing education is 10083, which is basically the same as that in the same period last year.
(3) the number of places: 17000, an increase of 6.1% over the same period last year, including 7000 / 6000 / 4000 of Dalian / Chengdu / Guangdong College, respectively, an increase of 22% / 13% / minus 18% over the same period last year. Guangdong College will not enroll junior college students in the 2022max 2023 academic year.
(4) School capacity and utilization: as of June 30, 2022, the campus capacity of the three universities has exceeded 58000 beds. At the beginning of the year, Dalian College expanded its capacity from 2082 to 24525, Chengdu College expanded from 1018 to 17888, and Guangdong College expanded its campus capacity from 3984 to 15647. The utilization rate of the three universities is 68.8%, 90.4%, 79.7%, respectively. After the freshmen move into the campus in the 2022 / 2023 academic year, the utilization rate of the three universities will be further excellent.
two。 The rate of sales, management and R & D expenses decreased. 1H22, ① sales expense rate: decreased 0.2pct to 2.5% year on year, sales expense increased 13.7% to 18.23 million yuan, mainly due to the company's increased efforts to develop the market for continuing education and education resources; ② management expense rate: decreased 1.9pct to 9.6% compared with the same period last year, and management expenses increased by 4.2% to 71.34 million yuan. ③ R & D expenditure rate: decreased 0.6pct to 3.1% compared with the same period last year, and R & D expenses increased by 5.3% to 22.91 million yuan, mainly because the company increased its R & D investment in education platform, products, education resources and other aspects, laying the foundation for the sustainable development of future business; ④ financial expense rate: year-on-year increase in 0.3pct to 5.0%, financial expenses increased by 33.7% to 37.16 million yuan, mainly due to the increase in bank loan interest charges.
3. The company's business plan:
We will continue to promote educational research and development and promote the expansion of the "one body and two wings" business market in many ways. ① continues to promote the update and iteration of TOPCARES methodology to achieve integrated upgrading of professional practice system; ② firmly promotes the R & D strategy of "education + science and technology"; ③ promotes the expansion of the two wings' business market by organizing IT events and carrying out "1x" certification training; ④ applies for more training qualifications, optimizes channels, expands the scale of cooperation among key institutions, and creates model schools.
Adhere to high-quality schools. The company focuses on the field of IT and health care science and technology, and combines industry leaders to consolidate the construction of five typical industrial colleges, with 25 national and provincial first-class undergraduate professional construction sites as the support, to speed up the cultivation of new majors, and promote the cross-integration of disciplines and majors, and further create superior professional clusters.
Update the judgment of the company. On the one hand, the company is a well-known enterprise in the field of private higher education, with strong school-running strength and perfect and reasonable product layout. nowadays, with the increasing demand for IT talents, it is expected to attract multi-layer students with solid teaching quality, multi-level and multi-echelon product system. On the other hand, the industry is strongly supported by policies, and is expected to get feedback on the company's performance. The introduction of industry-related policies will continue to benefit the company's continuing education business, educational resources and digital workshop business. The company's own excellent model and strong demand market will provide sufficient power for the company's next development.
Update earnings forecasts and valuations. We forecast that the company's main business income in 2022-2024 is 1.65 billion yuan (+ 21%), 1.95 billion yuan (+ 18%) and 2.24 billion yuan (+ 15%) respectively, and the return net profit is 400 million yuan (+ 40%), 500 million yuan (+ 25%) and 590 million yuan (+ 19%) respectively, and the corresponding EPS in 2022-2024 is 0.61,0.77 yuan and 0.91 yuan respectively.
According to 8-9 times PE and 5-6 times EV/EBITDA in 2022, the reasonable value range is 4.52-5.72 yuan per share, corresponding to 5.16-6.52 Hong Kong dollars per share (calculated at 1 Hong Kong dollar = 0.8768 RMB); maintain the "better than the market" rating.
(2) valuation:
PE valuation method: give 8-9 times PE in 2022, corresponding to a reasonable value range of 4.90-5.52 yuan per share, corresponding to 5.59-6.29 Hong Kong dollars per share (calculated at 1 Hong Kong dollar = 0.8768 RMB); EV/EBITDA valuation method: give 5-6 times EV/EBITDA in 2022, corresponding to a reasonable value range of 4.52-5.72 yuan per share, corresponding to 5.16-6.52 Hong Kong dollars per share (calculated at 1 Hong Kong dollar = 0.8768 RMB) Combining the two valuation methods, the company is given a reasonable value range of 4.52-5.72 yuan per share, corresponding to 5.16-6.52 Hong Kong dollars per share, maintaining a "better than the market" rating.
Risk tips: epidemic risk, slow promotion of new business risk, industry competition risk.