The epidemic continued to increase, with an annual dividend yield of nearly 45%: up to August 31, 2020, the company realized income of 761 million yuan, an increase of 12.8% over the same period last year; gross profit of 453 million yuan, an increase of 23.1% over the same period last year; operating profit of 338 million yuan, an increase of 33.3% over the same period last year; earnings per share of 0.270 yuan; and a final dividend of 0.0626 yuan per share, with a dividend payout ratio of 44.6%.

As of August 31, 2020, the number of students enrolled in the company's three schools totaled 43314, an overall year-on-year increase of 1.2%. In terms of opening, there were 17765 students from independent colleges (YOY/+17.4%), 17581 from independent vocational colleges (YOY/-5.6%), and 7968 from independent technical colleges (YOY/-12%). With regard to the enrollment of new students in 2021, under the influence of the policy of education and 1 million enrollment in independent colleges, the overall enrollment situation of the company is poor: the enrollment of general high schools in independent colleges is 2712, the enrollment rate is 1519, the registration rate is 94.5%, and the number of enrolled students is 19371 (YOY/+3.4%). The actual number of students in independent vocational colleges reached 6719, with an attendance rate of 79.5%, and the number of students enrolled was 17153 (YOY/+19.5%). The Institute of Technology enrolled 4841 new students and 10137 students, an increase of 27.2% over the same period last year.

The company's land equipment is adequate, and the internal growth is guaranteed: as of August 31, 2020, there are 2227 hectares of land, with a total construction area of 1.08 million square meters (including projects under construction). At present, the construction project of Zengcheng campus is scheduled to be completed by the end of August 2021, and the first phase of Jiangmen campus project is expected to be put into use in September 2022. At present, the collection of land equipment is sufficient, there is still a lot of exhibition space. It is estimated that the total number of students in the three campus districts can reach 75000. Based on the current 43314 students, the utilization rate is only 57.8%. The company's adequate equipment for land and the construction of new and old campuses guarantee the company's long-term internal growth. In addition, the company will seize the window period for the conversion of independent colleges to actively promote extension and project landing, and do not rule out the possibility of overseas cooperation or cooperation.

With a target of HK $5.00, maintaining a high level: the company has a long-term growth period thanks to the company's generous location in the Greater area, adequate land and construction equipment and the learning experience that the company has acquired in the past. The marketing work of the independent college is being actively promoted, but out of careful consideration, we do not test the film of the conversion, and the target of the whole company is HK $5.00, corresponding to 14x and 11x for 2021pm in 2022, respectively, compared with the recent closing rate of 76.1%.