China Oriental Education released its 2021 interim results on the evening of August 25. 1H21, due to the improvement of the epidemic, the company's performance showed a recovery trend, revenue increased by 31.9% to 2 billion yuan compared with the same period last year, and the return net profit was 230 million yuan, down 3.9% from the same period last year. The company's adjusted net profit was 300 million yuan, an increase of 41.8% over the same period last year, including equity incentive fees of 28 million yuan. As of June 30, 2021, the contract liability was 1.51 billion yuan, up 27.7% from the same period last year.
Brief comments and investment suggestions:
1. 1H21 income was 2 billion yuan, an increase of 31.9% over the same period last year.
(a) income: as of June 30, 2021, the income of each sector (year-on-year) is: New Oriental Education & Technology Group cooking income 1.03 billion yuan (+ 23.4%), Xinhua computer income 380 million yuan (+ 18.1%), Wantong automobile income 280 million yuan (+ 43.2%), Omichi income 210 million yuan (+ 81.9%), Huaxin Zhiyuan income 22 million yuan (+ 52.4%). The income of delicious College is 43 million yuan (+ 94.4%).
(B) training and registration: the average monthly training of 1H21 is 143000, an increase of 12.0% over the same period last year; and the number of new training is 82000, an increase of 34.7% over the same period last year. The average monthly training of 1H21 New Oriental Education & Technology Group Cooking, Xinhua computer, Wantong Automobile, Omickey and Huaxin Zhiyuan was 65000, 43000, 26000, 6000 and 771 respectively, compared with 1H20, 3.7%, 6.4%, 31.0%, 71.6%, 88.5%, respectively. The average monthly enrollment of the delicious College was 1606, an increase of 189.4% over the same period last year.
(C) the proportion of long-term courses is high: the average training attendance of 1H21's long-term courses accounts for about 88.6% of all courses.
The average number of people trained in long-term courses was 127000, an increase of 9.1% over the same period last year, while that in short-term courses was 16000, an increase of 41.0% over the same period last year.
two。 Number of schools and centers: as of June 30, 2021, the company has operated 218 schools and centers in 29 of the 31 provinces in mainland China and in Hong Kong, China. Among them, New Oriental Education & Technology Group Cooking Education, Omichi Western Food Education, delicious College, Xinhua computer Education, Huaxin Zhiyuan DT Talent training Base, Wantong Automobile Education and Aomandi Fashion and Beauty Education are 69, 39, 20, 31, 22, 36 and 1 respectively, compared with 1H20, which increases by 10, 8, 1, 1, 0, 4 and 1 respectively.
Risk hints: foreign exchange risk, market competition risk, risk of termination of preferential tax treatment.