Events:
Kaiyuan Education released its 2020 annual report on April 24, 2021. The company's operating income in 2020 was 850 million yuan, down 42.92% from the same period last year. It realized net profit of-766 million yuan and non-return net profit of-764 million yuan.
Kaiyuan Education released its quarterly report for 2021 on April 24, 2021. The company's 2021Q1 operating income was 218 million yuan, an increase of 56.79% over the same period last year, and an increase of 21.05% over the same period last year. It realized a net profit of-86 million yuan and a net profit of-87 million yuan.
Comments:
The decline in performance in 2020 was mainly caused by the decline in business affected by the epidemic and the collective provision for large goodwill impairment. After excluding the impact of the provision for impairment of goodwill, the net profit belonging to the shareholders of the listed company was a loss of 393 million yuan. As of December 31, 2020, the book value of the goodwill project of the company is 1.41 billion yuan, and the provision for impairment is 972 million yuan. The provision for impairment of goodwill for the current period is 373 million yuan, accounting for 48.68% of the net profit of the shareholders of the parent company in the current period. After the provision for impairment of goodwill is completed, the book value of goodwill is 442 million yuan, accounting for 30.86% of the total consolidated assets at the end of the period.
The company's 2020 gross profit margin was 57.93%, down 17.38pcts from the previous year, and the net profit rate was-92.47%, down 50.66pcts from the previous year. The management fee of the company in 2020 was 332 million yuan, down 11.23% from the same period last year, and the management expense rate was 39.00%. The company's sales expenses in 2020 were 516 million yuan, down 14.89% from the same period last year, and the sales expense rate was 60.71%. The financial expenses of the company in 2020 were 27 million yuan, down 48.51% from the same period last year, and the financial expense rate was 3.22%.
The split of the company in 2020 is as follows: (1) the company's education and training income in 2020 was 579 million yuan, down 35.17% from the same period last year, and the gross profit margin was 48.5%, down 19.72pcts from the previous year. (2) the intermediary income of the company's academic qualifications in 2020 was 226 million yuan, down 54.03% from the same period last year, and the gross profit margin was 85.65%, down 8.74pcts from the previous year. (3) the company's accessories and other income in 2020 was 27 million yuan, down 34.55% from the same period last year, and the gross profit margin was 48.08%. (4) the company's book revenue in 2020 was 18 million yuan, down 49.07% from the same period last year, and the gross profit margin was 27.47%.
The company's 2020Q4 operating income was 180 million yuan, down 36.21% from the same period last year and 40.16% from the previous month; the net profit returned to the mother was-594 million yuan, and the non-return net profit was deducted from-583 million yuan. The gross profit margin of the company's 2020Q4 is 34.61%, and the net profit rate is-332.21%.
The company's 2021Q1 gross profit margin was 54.11%, a month-on-month increase of 19.50pcts, a year-on-year increase of 9.15pcts, a net interest rate of-39.77%, a month-on-month increase of 292.43pcts, an increase of 60.07pcts over the same period last year. The company's 2021Q1 management fee was 76 million yuan, an increase of 2.10% over the same period last year, and the management expense rate was 35.10%. The company's 2021Q1 sales expenses were 113 million yuan, an increase of 8.56% over the same period last year, and the sales expense rate was 51.92%. The financial cost of the company's 2021Q1 was 8 million yuan, an increase of 2.04% over the same period last year, and the financial expense rate was 3.57%. The company's 2021Q1 R & D expenditure was 18 million yuan, an increase of 17.46% over the same period last year, and R & D investment accounted for 8.09% of revenue.
As a national chain operation company, Kaiyuan Education has built three major operation centers in Guangzhou, Beijing and Changsha. It has opened nearly 456 campuses in 26 provinces and 163cities across the country, and has a teaching and educational administration team of 2014 people. the total number of employees reached 6128. Kaiyuan Education is becoming a real OMO (online-mobile-offline trinity) online education company. Over the years, the company continues to explore the development of Internet education, and finally firmly take "education + Internet" as the company's development direction. At present, on the road of education and Internet, the company continues to increase its technological research and development efforts, and continues to develop and launch an industrial Internet platform based on See.AI intelligent adaptive learning platform, driving the deep integration and integration of the company online and offline, realizing the transformation of the entire structure, personnel, users, products, delivery and services, and truly realizing personalized education and life-long education. In 2020, the turnover of sales orders was 1.2474604 billion yuan, and the total operating income was 850.1571 million yuan, of which the income from online education and training reached 260.3533 million yuan, accounting for 30.62% of the company's total revenue.
Kaiyuan Education recently launched a 2021 restricted stock incentive plan. The total number of restricted shares to be granted to the incentive target under this incentive plan is 20 million shares, accounting for 5.86% of the company's total share capital of 341.184492 million shares at the time of the announcement of the draft incentive plan. Among them, 16 million shares were granted for the first time, accounting for 4.69% of the company's total equity at the time of the announcement of the draft incentive plan, and the portion of the first grant accounted for 80% of the total rights granted; 4 million shares were reserved, accounting for 1.17% of the company's total equity of 341.184492 million shares at the time of the announcement of the draft incentive plan, and the reserved portion accounted for 20% of the total equity granted. The price of restricted stock granted for the first time under this incentive scheme is 3.89 yuan per share.
Earnings forecasts, valuations and ratings. Considering the impact of the recent domestic epidemic, the net profit of our company from 2021 to 2022 is 0.10 (- 96%) and 1.00 (- 75) million yuan respectively, and the net profit is expected to be 197 million yuan in 2023. Considering that vocational education is currently the direction of government policy encouragement and support, and the company is one of the giant companies and listed companies in the field of vocational education, the recent launch of equity incentives shows confidence in future development, and we maintain a "buy" rating.
Risk hint: policy risk, brain drain risk, epidemic situation aggravates the risk.
