On April 29, the company announced its quarterly report for 20 years and annual report for 19 years:
The 20Q1 income was 393 million yuan, down 27.76% from the same period last year; the net profit from the mother was-18 million yuan, down 165.87% from the same period last year; and the net profit after deducting the non-return from the mother was-58 million yuan, down 324.63% from the same period last year. The decline in income from the same period was mainly due to the impact of the epidemic, with all schools closed and the company's offline teaching center business suspended, resulting in a decline in income. The decline in return net profit and deduction of non-return net profit is mainly due to the outbreak of COVID-19 epidemic in January 2020, the company's offline teaching is at a standstill, and the company accelerates the expansion of online business. however, due to rigid operating costs, online course upfront investment, epidemic prevention material consumption and other expenses, profits dropped sharply compared with the same period last year.
In 2019, the company's income was 2.391 billion yuan, an increase of 14.12% over the same period last year; the net profit was 54 million yuan, an increase of 120.30% over the same period last year; and the net profit was 4 million yuan, an increase of 102.16% over the same period last year.
20Q1 achieved a net profit of-18 million, a decrease of-165.87% over the same period last year; a net interest rate of-4.62%, a decrease of 7.9%, an increase of 120.3% over the same period last year; and a net interest rate of 2.26%, an increase of 17.63pct over the same period last year. From a quarterly point of view, the return net profit of 19Q1/Q2/Q3/Q4 is 0.28, 0.22, 0.53, 0.49 million respectively.
Downgrade earnings forecast and give buy rating.
The company, which originated from Shanghai Jiaotong University, is a famous education and training institution in China and a leading enterprise of education and training brand in Shanghai. The company has 35 years of education and training experience, has accumulated a good social brand image, a variety of teaching service products, excellent management and operation team, solid offline network foundation, continuous iterative innovation ability. Through internal incubation and external mergers and acquisitions, the company actively distributes the market segmentation of discipline and quality education, explores the business model of online and offline integration, and covers K12 and other product lines in an all-round way. the formation of K12 education, vocational education, international education and other complete education and training service industry chain, with comprehensive competitive advantages in brand building, curriculum research and development, business development, personnel training, teacher training and so on.
As the epidemic affected part of the company's offline training business, we lowered the company's profit forecast. In 2020-21, EPS was adjusted from 1.24,1.48 yuan to 0.41,0.72 yuan, and the PE was 39xpe and 22xpe, respectively.
Risk tips: lower-than-expected enrollment, impact of online education, loss of core executives, etc.