FY24H1 revenue also increased 18.3%, net profit to mother after adjustment increased 4.5%, dividend rate 45%
FY24H1's revenue was 3.28 billion yuan, up 18.3% year on year; net profit due to the adjustment was 1.09 billion yuan, up 4.5% year on year; the company maintained a stable dividend ratio and paid an interim dividend of RMB 18.77 points per common share, accounting for about 45% of the adjusted net profit to mother, up from 40% in the same period last year.
By revenue market, revenue from the domestic market segment was 3.18 billion yuan, up 19.2% year on year, mainly driven by the increase in the number of students enrolled and per student income; revenue from the international market segment was 105 million yuan, a decrease of 1.9% year on year.
Increase investment in running schools and continue to expand existing campuses
FY24H1's gross profit margin was 56%, a year-on-year decrease of 1.4 pct. Fluctuations may be due to campus expansion and increased investment in teachers and teaching; sales expenses accounted for 2.7% of revenue, a year-on-year decrease of 0.4 pct, administrative expenses accounted for 14.5% of revenue, an increase of 0.5 pct year-on-year, mainly due to an increase in the number of students, and new campuses and buildings being put into use and depreciation has begun to be confirmed.
The net interest rate returned by FY24H1 to mother after adjustment was 33.3%, a year-on-year decrease of 4.4 pct.
FY24H1's capital expenditure was 2.03 billion yuan, an increase of 66.6% over the previous year, mainly due to the expansion of new buildings in the existing campus and the expansion of schools in Shandong and Guangdong provinces. As of the end of February '24, the company's properties, school buildings and equipment were 19.316 billion yuan, an increase of 9.3% over the previous year.
Lay out strategic development areas for vocational education, promote the integration of industry and education, and promote employment. Schools under the company are all located in industrial clusters such as the Chengdu-Chongqing Shuangcheng Economic Zone, the Guangdong-Hong Kong-Macao Greater Bay Area, and the Hainan Free Trade Zone. They have a leading position in scale and reputation. They provide vocational education services to better serve local industry and economic development, and incubate applied talents. Overseas, the company's higher education schools in Sydney, Australia, and universities in London, England that can award both American and British degrees can provide students with real opportunities to internationalize their academic qualifications and abilities.
The company's “double teacher” teaching team and open regional obstetrics and education integration practice center are favored by students. They adhere to contextual high-quality development strategies, develop applied courses that meet the needs of the times, and cooperate closely with enterprises to vigorously promote the integrated and collaborative development of obstetrics and education.
Raise profit forecast and maintain “hold” rating
According to the company's mid-term performance, we raised our forecast for the growth rate of the number of students and raised the profit forecast. The company's revenue for FY24-25 is 6.9 billion yuan and 7.5 billion yuan (previous values were 5.91 billion yuan and 6.28 billion yuan, respectively), the adjusted net profit was 21.15 billion yuan and 2.42 billion yuan respectively (previous values were 20.1 billion yuan and 2.11 billion yuan, respectively), and EPS was 0.8 and 0.9 yuan/share (previous values were 0.79 and 0.83 yuan/share, respectively), and the corresponding PE is 5.9 and 5.2 times, respectively.
Risk warning: Enrollment falls short of expectations; expansion of new campuses falls short of expectations; risk of repeated outbreaks in some regions.