The company released the 2023H1 performance report, 23H1 annual revenue of 1.95 billion yuan, year-on-year + 4.0%; net profit of 204 million yuan, year-on-year-15.9%; adjusted net profit of 180 million yuan,-2.7%.
By brand: New Oriental Education & Technology Group's income is 920 million yuan (47.0%, year-on-year-2.5pct), year-on-year-3.0%; Omickey income 160 million yuan (8.2%, year-on-year + 0.5pct), year-on-year + 2.7%; delicious college income 30 million yuan (1.7%, year-on-year + 0.2pct), year-on-year + 9.4% Xinhua computer revenue 380 million yuan (19.4%, year-on-year + 0.02pct), + 4.2% year-on-year; Huaxin Zhiyuan income 20 million yuan (0.8%, year-on-year-0.3pct), year-on-year-26.7%; Wantong revenue 400 million yuan (20.7%, year-on-year + 1.9pct), year-on-year + 24.5%.
The total number of schools is 244, and the number of new 23H1 training and new customer registration is 85000, which is + 20% compared with the same period last year.
By the end of 2023H1, the number of oriental education schools and centers in China was 244, compared with the same period last year.
The number of schools and centers of cuisine technology branch is 142.Among them, there are 76 schools and centers for cooking education in New Oriental Education & Technology Group, 46 schools for western food education in Omichi, and 20 schools for delicious food.
The number of information technology and Internet technology branch schools and centers is 58, of which Xinhua computer education 38, year-on-year + 1, Huaxin Zhiyuan DT talent training base 20, year-on-year-2.
The number of schools and centers in the Automotive Service Division (Wantong Automobile Education) is 40, which is + 1 compared with the same period last year.
The number of schools and centers of the Fashion and Beauty Division (that is, Aumanti Fashion and Beauty Education) is 4, 2 compared with the same period last year.
The average number of trainees of 23H1 China Oriental Education is 147000, which is + 2.6% of the same period last year.
Divided by courses, the average training attendance for long-term courses is 131000, which is + 0.5% compared with the same period last year (among them, 7000 for less than one year and less than two years,-1.6% compared with the same period last year; 26000 for less than two years and less than three years,-37.8% compared with the same period last year; 98000 for three-year courses, + 20.8% compared with the same period last year); the average training attendance for short-term courses is 16000, which is + 22.7% compared with the same period last year.
According to brands, New Oriental Education & Technology Group trained an average of 59000, year-on-year-4.4%; Omickey, 5000,-3.2%; delicious College, 1100, + 8.2%; Xinhua, 42000,-0.8%; Hua Xin Zhiyuan, 529,-36.6%. Wantong trained an average of 39000 people, + 20.2% compared with the same period last year, while Aumandi trained an average of 1396 people, + 85.6% compared with the same period last year.
During the start of the new school, the related costs affect the company's gross profit.
23H1's gross profit margin is 51.1%, year-on-year-1.8pct. The decrease in gross profit margin is mainly due to a substantial increase in staff salaries and benefits as well as teaching-related consumables and other costs under income costs. Among them, New Oriental Education & Technology Group's gross profit margin is 52.7%, year-on-year-5.0pct; Omickey gross profit margin is 47.0%, year-on-year + 4.7pct; delicious college gross profit margin is 53.4%, year-on-year + 8.0pct; Xinhua computer gross profit margin is 55%, year-on-year + 1.6pct; Huaxin Zhiyuan 49.2%, year-on-year-4.5pct; Wantong gross profit margin is 51.8%, year-on-year + 4.6pct.
On the expense side, the sales / management / financial expense rates are 26.3%, 13.5% and 3.7%, respectively, compared with the same period last year + 2.7/-0.1/-0.7pct. The change in sales expenses is mainly due to the fact that in order to promote the brand image, the company hired a professional consultant to design a new image "Panda Chef" for New Oriental Education & Technology Group to show a more dynamic and young image to the public, as well as an increase in advertising resources.
Adjust the earnings forecast to maintain the "buy" rating.
China Oriental Education, as the forerunner of vocational skills education in China, has targeted courses to meet the unmet needs in the field of vocational skills education, narrowing the gap between supply and demand between employers and students, focusing on three major industries, and campus networks throughout the country. According to the 23 mid-year report, we adjust our profit forecasts and estimate that the income for 23-25 will be 42.4,47.0 and 5.27 billion yuan respectively (the original value for 23-24 years is 55.8 yuan and 6.33 billion yuan), and the net profit of returning home is 4.4,5.1 and 610 million yuan respectively (the original value for 23-24 years is 5.8 yuan and 660 million yuan). The EPS is 0.20,0.24,0.28 RMB per share (the original value from 23 to 24 years is 0.27,0.30 RMB per share), and the corresponding PE is 12,11,9x.
Risk tips: lower-than-expected enrollment, loss of core executives, fierce market competition and other risks.