Brief comment on performance
Revenue is + 38.4% year-on-year, and adjusted net profit is + 12.1%. On the evening of April 28, Maple Leaf Education released the H1 performance for fiscal year 2021. FY2021H1 achieved an income of 1.096 billion yuan, + 38.4% compared with the same period last year. The main driving force for income growth is the increase in average annual tuition fees and the increase in the number of students.
The net profit was 222 million yuan,-15.8% compared with the same period last year, and the adjusted net profit was 315 million yuan (mainly for amortization and depreciation resulting from the acquisition, and changes in the fair value of convertible bonds), + 12.1% compared with the same period last year.
Gross profit margin fell slightly and the rate of management expenses increased as a result of mergers and acquisitions. FY2021H1's gross profit margin is 43.4%, year-on-year-1pct, mainly because the gross profit margin of overseas schools is slightly lower than that of mainland schools. The sales expense rate is 1.4%, compared with the same period last year-0.6pct. The rate of management expenses was 14.8%, which was + 1.8pct compared with the same period last year, mainly due to the new acquisition of overseas schools KIS and CIS.
The number of students and tuition fees have increased greatly compared with the same period last year, with + 7.3% and 30.6% respectively. By the end of February 20, the total number of students enrolled in the company had reached 44076, which was + 3000 / + 7.3% compared with the same period last year, mainly driven by the improvement of the utilization rate of overseas colleges and universities and schools in Haikou, Jinan and Hohhot. The average annual tuition fee per student + 30.6%, from 34600 yuan in the same period last year to 45200 yuan, + 30.6% compared with the same period last year, mainly due to the higher tuition fees charged by CIS in Singapore. According to the sub-section, the proportion of primary / junior high school / senior high school students is 49% / 23% / 17% respectively, and the pyramid structure ensures the stability of senior high school students.
International school income contributed 30.2%, and expansion plans at home and abroad continued to move forward. In the 20x21 school year, the company's global school network increased from 109 at the end of August 20 to 116, with 103 in 23 cities in China and 13 in four overseas countries, Canada, Malaysia, Singapore and Australia. During the period, overseas schools accounted for 30.2% of the income contribution, and enrolled students accounted for 9.3% of the total.
Increase the global layout of schools during the sixth five-year Plan: in the future, the company will continue to invest in overseas schools, focusing on countries along the Belt and Road Initiative route. The company expects that overseas schools will account for more than 40% of the income contribution by the end of the sixth five-year Plan. The establishment of 10 regions in China aims to enroll 100000 students and two regions overseas to enroll 10,000 students to achieve the goal of building 150 schools at home and abroad. Covering 50 cities around the world, the company plans to open schools in Hillside Campus in Singapore, Brockville in Canada, and Nanjing and Shenzhen in China in the 23rd academic year, and continues to expand at home and abroad.
Profit forecast and investment rating: the company's performance gradually recovered after the epidemic. The performance of H1 was slightly lower than we expected. We downgraded the company's net profit for fiscal year 2021-23 from RMB 1.19 billion to RMB 6.2 billion, which is + 23% / 15% / 12% compared with the same period last year. The latest closing price corresponds to PE of 8.4% and 7.4% for fiscal year 2021-23, respectively, maintaining the "buy" rating.
Risk tips: lower than expected enrollment, repeated overseas epidemics, etc.