The net profit of homing in 2020 increased by 42% compared with the same period last year, which was lower than previously expected.
In 2020, the company achieved revenue of 849 million yuan /-11%, return to the mother net profit of 114 million yuan / + 42%, lower than the performance forecast, the additional provision of 41.09 million yuan of asset impairment loss, deduction of non-return net profit of 113 million yuan / + 47%, high performance growth is driven by Longmen wholly-owned table, EPS0.41 yuan Q4 in a single quarter, the company's revenue was 234 million yuan /-11%, the net profit loss was 3.67 million yuan /-128%, and the non-return net profit loss was 3.31 million yuan /-132%. The EPS was-0.01 yuan.
Longmen actively promotes new business to hedge the impact of the epidemic, paying attention to the progress of the divestiture of ink business. Longmen education's overall income is 493 million yuan /-11%, and its net profit is 163 million yuan /-1%. Outstanding performance betting (180 million): 1) closed business income of 334 million yuan / + 2%, gross profit margin of 62% Universe 8pct, driven by income caliber adjustment and short-term care business. The enrollment number is 20800 /-9%, which is due to the reorganization and renovation of Baqiao campus, stricter policies and comprehensive disturbance of the epidemic situation; the profit is expected to be RMB 150 million; 2) K12 income is RMB 151 million /-13%, and the gross profit margin is 48%. The gross profit margin is 0.5pct, which is of the order of 10 million. 3) the impact of 1.34 million of the income realized by the software is relatively small. The income of the ink business is 355 million yuan /-13%, the gross profit is 22%, the gross profit is 0.3 pct, and the profit is about 1 million yuan. Follow up and pay attention to the progress of the divestiture.
The company's gross profit margin is 43% Universe 1.3 pct, which is driven by the increase in the share of education business; the net profit rate is 16% Maxime 1pct; the sales / management / financial rate is reduced by 0.7 pct; the sales / management / financial rate is reduced by 2.5 pct; and the R & D rate is increased by 0.3 pct. 0.24pct.
2021Q1 net profit increased by 47%. Longmen wholly-owned consolidated table brought high growth 2021Q1 income of 213 million yuan / + 25%, and parent-owned net profit of 3184 yuan / + 47%, which was caused by Longmen's wholly-owned table. The net profit of deducting non-parent net profit was 3151 yuan / + 48%. If the combined factors are excluded, the overall income / performance of Longmen Q1 is expected to decline by 10-20% compared with the same period last year, which is due to the impact of enrollment and epidemic situation. The gross profit margin of the company is 39% Maxime 5pct; the net profit is 17% Maxime 6pct; the sales / management rate is 0.4 pct higher than the same period last year, respectively, and the R & D / financial rate is down 0.7/0.8pct compared with the same period last year.
Risk tips: stricter industry policy, less than expected enrollment, loss of Longmen education team, and so on.
Steady progress in different places, pay attention to the landing progress of the new campus, maintain the steady progress of the "increase" rating company in different places, taking into account the campus business increment and cost amortization, the company is expected to have an overall EPS0.57/0.69/0.81 of 21-23 yuan (of which education business is 0.49 yuan 0.59 shock 0.71 yuan), corresponding to a 21-23 valuation level of 23 shock 19max 16x (education sector 2722 shock 18x) Maintain the "overweight" rating and follow closely the enrollment progress of the new campus.
Investment suggestion: make steady progress in different places, pay attention to the landing progress of the new campus, maintain the steady progress of the "increase" rating company in different places, and comprehensively consider the campus business increment and cost amortization, the company is expected to have an overall EPS0.57/0.69/0.81 of 21-23 years (of which education business is 0.49 and 0.59 yuan). Corresponding to the 21-23 valuation level of 23x19max 16x (the education sector is 27x22x18x), maintain the "overweight" rating, and follow up to closely monitor the enrollment progress of the new campus.
Risk hint
The policy supervision of the education industry is stricter; the enrollment of the new campus is not up to expectations; the reduction of shareholders; the loss of the founding team of Longmen education, and so on.