The 16-year net profit of returning to the mother was 0.94-122 million, an increase of 0-30% over the same period last year. On January 23, the company announced that its 16-year revenue ranged from 922 million to 1.054 billion yuan, an increase of 110% over the same period last year. The net profit returned to its mother was 93.5956 million yuan to 122 million yuan (including non-recurrent profit and loss of 1500 yuan to 21 million yuan), an increase of 0% and 30% over the same period last year. The revenue growth is mainly due to the rapid development of EdSaaS business, which currently covers about 16000 K12 schools, and the steady growth of the interactive upgrading business between the former main home school and the continuing education business of the relay education network. The company's "full course Cloud + and Education" dual platform strategy is clear, steadily advancing the landing, and the value of business synergy needs to be gradually released; the profit growth rate is less than the revenue growth rate, mainly due to the company's continued increased investment in team building, market development and research and development. all kinds of expenses have increased significantly compared with the same period last year, and it is expected that there will be a performance inflection point in 2017.
Acquire Shanghai Wenxi Collaborative EdSaaS business and give full play to Shanghai demonstration effect. Previously, the company planned to acquire 47.33% stake in Shanghai Wenxi in cash. Upon completion of the acquisition, the company will hold 75% stake in Shanghai Wenxi.
Shanghai Wenxi is committed to providing consulting services for schools and educational administrative institutions on the implementation of digital teaching and educational informatization projects, has accumulated rich experience in educational informatization projects, and has a full-process integrated digital campus service model. Based in Shanghai and radiating East and South China, Shanghai Wenxi serves nearly 1000 schools, including Rangmei Primary School and Luoyang Primary School in Shanghai, with more than 200000 students. First, this acquisition will promote more in-depth EdSaaS business coordination between the company and Shanghai Wenxi, promote the solid promotion of the company's core strategy, and provide mature experience and strong support for the large-scale promotion and operation of EdSaaS; second, it will help the company deepen its layout and operate the Shanghai market, further strengthen the brand and play an exemplary role. Third, it will further strengthen the company's R & D capability (Shanghai Wenxi has nearly 100 R & D personnel and strong software development and technological innovation capabilities), which will help to actively explore new technologies and products to bring better experience and services to users.
Multi-dimensional traffic entry strong card position, binding resources to improve comprehensive service capability. The four parts of the company's home-school interaction and upgrading, E-SaaS, continuing education and subject enrollment service develop in an orderly manner, and actively build an educational ecosystem around E-SaaS. The core of K12 stage online education is how to use the Internet to improve the efficiency and effectiveness of in-school education. Quantong Education Informatization is promoted by the government bidding PasS project + Ed-SaaS project at the same time, grasps the school data of K12 students by academic evaluation, locks teachers' resources online with education network / China Education online, actively constructs the educational ecosystem, develops educational content independently and opens up standardized third-party product interfaces. In addition, the company will have a continuing education network covering educational practitioners and a Chinese education online covering all people in the whole field, gradually binding to teachers, so as to improve the service ability of further studies in the future. After strengthening the stickiness between the school and users, the subject further education service, as a later driving force, will be carried out more customized according to the teaching big data.
Maintain a "buy" rating. Quantong Education is a high-quality enterprise with full-service operation of "platform application + service development + content value-added" under the education industry reform. The company has entered the stage of gradual realization of traffic. in the future, on the one hand, the company will continue to expand and maintain traffic entrances and enhance user flow, on the other hand, it will improve product structure, develop more products with high ARPU value, and create reasonable channels for realizing user traffic, so as to provide strong support for the company's long-term profitability. We estimate that the EPS of 16-18 years is 0.19,0.32 and 0.41 yuan respectively, and the current stock price corresponds to 95 times, 56 times and 43 times PE of 16-18 years respectively. Maintain a "buy" rating.
Risk hint: performance growth is lower than expected.
