Event: in 2020, the company's revenue increased by 5.3%, while the adjusted net profit decreased by 28.9%. In 2020, the company's revenue increased by 5.3% to 749 million yuan, the mother's net profit decreased by 48.4% to 48.94 million yuan, and the adjusted net profit decreased by 28.9% to 96.81 million yuan (the impact of adjusting equity incentive expenses and leasing accounting standards). The company's gross profit margin fell by 7.9PCTs to 34.8% in 2020, mainly due to the fact that 98 new learning centers were still in a climbing period in 2019 and 2020 and a large amount of additional expenditure on online teaching during the epidemic; the sales expense rate slightly increased by 0.1PCTs to 3.1%, and the management expense rate also increased by 1.7PCTs to 20.3%, mainly due to the increase in the salary and benefits of managers; the R & D expenditure rate also increased to 7.6%. To sum up, the company's adjusted net interest rate fell by 6.2PCTs to 12.9% in 2020.
The number of students enrolled has increased steadily, and the continuation rate and multi-subject rate have increased steadily. In 2020, the number of students enrolled in the company's academic preparation courses increased by 14.2% to 330700, and the number of tutoring hours increased by 19.2% to 1007.83 million class hours, achieving steady growth. On the other hand, the company offered discounts and concessions to students in response to the epidemic, resulting in an average class hour fee reduction of 8.9% to 73.5 yuan, putting pressure on the company's performance. The teaching quality of the company has been verified again, the continuation rate of classes in 2020 is 71.5%, the proportion of students participating in more than one subject has increased to 60.7%, and the stickiness of students has increased.
In 2020, the learning center maintained high growth and officially entered the Jiangsu and Zhejiang markets. Under the background of the epidemic in 2020, the company maintained the rapid growth of its network, adding 52 new learning centers in 2020, reaching 152 by the end of the year. In terms of regional layout, the company deepened the layout of Guangzhou campus in 2020, and at present, the number of campus has reached 9; in addition, the company officially stepped out of the Jiangsu and Zhejiang market in South China in 2020 and opened 1 / 2 campuses in Suzhou / Ningbo respectively. The number of students in the two cities is close to 1,000, and the expansion is good.
Strengthen team building, optimize the customer acquisition model, high-quality growth can be expected. The number of students enrolled in the winter semester of 2021 has increased by 40% compared with the same period last year, and the student base has been further expanded. The company will strengthen team building in 2021, focusing on teacher recruitment and training, and set up comprehensive teacher training bases in Shenzhen, Guangzhou, Wuhan, Jiangsu and other places. In terms of obtaining customers, the company expects that in 2021, on the basis of the original free course diversion in the entrance grade, a fee-based class will be set up in the non-entrance grade to optimize the customer acquisition model driven by word of mouth, and the discount intensity of the course will also be reduced. Under the circumstances that the current K12 extracurricular training supervision policy has not yet been implemented, the company is expected to balance the speed of the new learning center, strengthen teaching and research and student services, and high-quality development is expected.
Investment advice. As the regional leader of K12 extracurricular training in South China, the company ploughs the Guangdong market and enters the Yangtze River Delta market on this basis. According to the 2020 financial report and the business recovery in 2021, we raised the company's 2021Universe adjusted net profit forecast to RMB 158,000,000 in 2022 (formerly RMB 138max), and estimated the adjusted net profit in 20223 to RMB 256 million, with an increase of 63.2%, 30.3%, 24.3%, corresponding to EPS 0.28max, 0.37, 0.46, and current price, corresponding to PE 26X/20X/16X, maintaining the "overweight" rating.
Risk hints: the risk of recurrence of the epidemic; the lower-than-expected profitability in the process of expansion; the expansion risk of the new teaching model; the tightening of regulatory policies; and the intensification of industry competition.