Event: 2020H1's revenue and adjusted net profit increased by 31.9% and 41.8% respectively. The company's 2021H1 revenue rebounded sharply to 2 billion yuan from the same period last year, with a net profit of 233 million yuan, and an adjusted net profit of 41.8% to 300 million yuan (2019H1 revenue and adjusted net profit were 1.82 billion yuan and 410 million yuan, respectively).
The cost side is under pressure, which is a drag on the performance of the profit side. The change in brand structure and the increase in teaching and rental costs led to a slight decrease in the overall gross profit margin (2.2PCTs to 55.3%), an increase in sales expenses (96.475 million) over the same period last year, and a decrease in sales expense rate (1.1PCTs) to 23.2%, mainly due to increased marketing efforts such as new specialties. The management expense rate also decreased 4.9PCTs to 12.6%. Taken together, the company's adjusted net interest rate increased by 1PCTs to 15%.
New Oriental Education & Technology Group, Xinhua computer performance steady, Wantong, Omickey eye-catching. From a brand point of view, 2021H1 New Oriental Education & Technology Group / Xinhua / Wantong / Omickey achieved revenue of RMB 10.3 million, respectively, an increase of 23.4% over the same period last year, with an increase of 18.1%, 43.2% and 81.9% compared with 2019H1.
1.4% 9.7% Accord 13.6% 36.1% Magne2021H1 Gross profit margin is 57.8% 58.8% 46.4% 54.5%, year-on-year change-6.1/-4.1/+5.1/+17.5PCTs, it can be seen that Wantong and Omichi brands have ushered in considerable growth in revenue and operating efficiency after the end of slope climbing in new majors and sub-new campuses. The net profit of the division is 3.00.000,000,000 yuan respectively. New Oriental Education & Technology Group and Xinhua computer performance is still sound under the influence of the epidemic. Wantong and Omichi's performance is expected to usher in considerable improvement after the medium-and long-term student base is stable.
The enrollment growth of the three-year system is excellent, and the land push model is expected to help enrollment in the second half of the year. The new training person-time of 2021H1 company increased by 34.7% to 82000 (2019H1 76000), and the average training person-time increased by 12.0% to 143000. The proportion of the three-year program continued to increase significantly, and the structure continued to be optimized. By the end of 2021H1, the number of new students / average training of the three-year program increased by 80.5% and 46.4% respectively, accounting for an increase of 45.1% with an increase of 5.7/10.6PCTs to 22.5%, respectively. The growth rate of New Oriental Education & Technology Group / Xinhua computer / Wantong Auto repair / Omichi freshmen increased by 15.5%, 36.3%, 70.1%, 36.9%, respectively, and the average person-time growth rate of New Oriental Education & Technology Group / Xinhua computer / Wantong Auto repair / Omichi freshmen increased by 3.7%, 6.4%, 31%, 71.6%, respectively. The growth of Wantong and Omickey freshmen significantly benefited from the introduction of new specialties and the gradual maturity of the early climbing network.
In addition, Aomantimei 2021H1 freshmen / average person-time is 676 + 406 (yoy+173.7%/+372.1%), and the company has restarted the ground push model in the second half of the year, which is expected to help recruit students in the autumn.
Investment advice. As a leader in the vocational skills training industry, the company continues to consolidate its competitive advantage in running a school, and is under pressure on the cost side in the short term due to policy disturbances and fluctuations in the competitive environment. It is still optimistic about the development trend of the industry and the healthy growth of the company's multi-brands in the medium and long term. According to the 2021 China report, we adjusted the 2021-2023 net profit forecast of 7.1710.82 billion yuan, with an increase of 178.4%, 50.9%, 16.4%. Corresponding to EPS0.33/0.49/0.57 yuan, the current price corresponds to PE 21-14-12 times, maintaining the "buy" rating.
Risk tips: the risk of recurrence of the epidemic; the utilization rate of the new campus is not as high as expected; the profitability of the US sector is not as expected; the demand structure of cooking training is changing, and the growth is dragged down by the product adjustment period.