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中国东方教育(00667.HK):经调整净利+42% 疫情后经营逐渐恢复

China Oriental Education (00667.HK): after adjusting the net profit + 42% of the epidemic, the operation gradually recovered.

東吳證券 ·  Aug 26, 2021 00:00

Brief comment on performance

2021H1 revenue is + 32% year-on-year, adjusted net profit is + 42% year-on-year, and the adjustment items are mainly equity payment and exchange losses: the company announced 2021H1 results on August 25, and 2021H1 achieved income of 2 billion yuan, + 32% year-on-year; and home net profit of 230 million yuan, down 4% from the same period last year, and adjusted net profit of 300 million yuan, a year-on-year growth rate of + 42%. The main adjustments are equity payments (28.09 million yuan) and exchange losses (39.61 million yuan), while equity payments of 38.08 million yuan and exchange gains of 68.45 million yuan respectively in the same period last year, so there is a difference of about 98 million over the same period last year.

In terms of brands, New Oriental Education & Technology Group's income contribution reached 51%, while Omickey West Diet and delicious Institute grew rapidly: New Oriental Education & Technology Group Cooking / Xinhua computer / Wantong Auto repair income was 1.03 billion yuan / 380 million yuan / 280 million yuan respectively, year-on-year growth rate + 23%, 18%, 43%, income accounted for 51%, 19%, 14%, New Oriental Education & Technology Group cooking is still the largest contributor, and the combined income of the three sectors accounts for 84%. Omickey West Point and delicious College respectively achieved a year-on-year increase of 82% and 94% respectively, with an income of 210 million yuan / 42.64 million yuan.

The number of outlets has expanded steadily, with 12 more than at the end of 2020: by the end of June 2021, the company had 218 schools and centers, 12 more than at the end of 2020, covering 29 provinces and Hong Kong, including 69 schools in New Oriental Education & Technology Group, 39 in Omichi and 36 in Wantong auto repair.

The number of new trainers increased by + 35% compared with the same period last year, with Wantong Auto repair and delicious Institute leading the growth:

The total number of new training / new registrations of 2021H1 Group is 82000, which is + 35% compared with the same period last year, of which New Oriental Education & Technology Group / Xinhua computer / Wantong Auto repair / delicious Institute 34000 / 13000 / 15000 / 8398, compared with the same period last year, + 15.5%, 36%, 70%, 73%. The average number of training / registrations is 143000, which is + 12% compared with the same period last year.

Among them, New Oriental Education & Technology Group / Xinhua computer / Wantong Auto repair / Omickey / delicious College 65000 / 43000 / 26000 / 5977 / 1606, compared with the same period last year, + 4% + 4%, 6%, 31%, 31%, 72%, 189%.

The tuition fees of core brands have increased steadily, and the proportion of three-year long-term courses has increased significantly. We are optimistic about the steady growth of income in the future: the overall average tuition fee of the group is 27500 yuan, which is + 16.9% compared with the same period last year. New Oriental Education & Technology Group / Xinhua computer / Wantong Auto repair is 32000 yuan / 18000 yuan / 21000 yuan respectively, compared with the same period last year. The average number of trainees in three-year courses increased by 11pct to 45% compared with the same period last year, while the proportion of new trainees in three-year courses increased by 6pct to 23% year-on-year. Higher tuition fees for core brands, an increase in the proportion of superimposed ARPU and relatively higher fees for long-term courses are expected to bring steady revenue growth for the group in the future.

Profit forecast and investment rating: vocational education is the main direction of policy encouragement at present, and more support measures may be introduced in the future. as the leader of vocational education, the company has obvious scale advantages and outstanding operation and management ability. taking into account the impact of the epidemic, we cautiously downgrade the company's 2021-2023 net return from 10.1 / 11.8 billion yuan to 7.6 / 9.1 billion yuan. Compared with the same period last year, the latest closing price corresponds to 19-16-13 times of PE in 2021-2023, maintaining the "buy" rating.

Risk hints: policy risks, lower-than-expected enrollment, lower-than-expected landing of new projects, etc.

The translation is provided by third-party software.


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