Event: the company's 2021H1 revenue increased by 18.5%, and adjusted net profit increased by 13.8%. The company's 2021H1 revenue increased by 18.5% to 290 million yuan, net profit increased by 36.0% to 208 million yuan, and adjusted net profit increased by 13.8% to 205 million yuan (adjusting exchange gains and losses and equity incentive expenses).
2021H1's gross profit margin was 71.1%, which was basically the same as the same period last year; the sales expense rate also increased by 0.5PCTs to 1.5%; and the management expense rate also decreased by 13.7PCTs to 11.9%, mainly due to the reduction of equity incentive expenses.
To sum up, the adjusted net interest rate of the company's 2021H1 is also reduced by 2.9PCTs to 70.7%.
The business of higher education is developing steadily, and the effect of running a high-level school is prominent. As of June 30, 2021, the enrollment of the company's four schools (including the unlisted Clinical Medical College and Hongshan College) increased by 10.5% to 48600, of which the number of full-time students increased by 6.7% to 42600. The company insists on running a high-quality school. Two majors of communication engineering and financial management of Xinhua College are selected as national first-class undergraduate majors, and another five majors are selected as provincial first-class undergraduate majors. The company deepens industrial cooperation and actively cooperates with JD.com, Juxing supermedia and other enterprises to create a modern industrial college and innovate talent training mode.
The number of enrollment will continue to increase in 2021, with both volume and price supporting the follow-up growth. The company has an undergraduate enrollment plan of 11300 students in the 2021 and 2022 academic year, an increase of 5.2%. The structure of students has been further optimized, and the number of undergraduates accounts for about 77.7% of the total number of full-time students. In terms of tuition fees, the company's Xinhua College and Clinical Medical School have increased in the 2021 and 2022 academic year, and both volume and price increases are expected to support the company's follow-up growth.
The construction of the new campus is progressing smoothly, and the conversion of independent colleges is proceeding as scheduled. In terms of the construction of the new campus, the first phase of the new campus of the Clinical Medical College will build about 185000 square meters, and the capacity of the new campus of Hongshan College will be increased by 5000 students. The first phase of the new campus of Hongshan College will build about 235000 square meters, and the capacity of 9000 students will be added upon completion. The company speeds up the construction of new campuses of two independent colleges and continues to promote the conversion work. The conversion of the two independent colleges is expected to increase the scale of the company and improve its profitability.
Investment advice. As a group of high-quality private colleges and universities, the company continues to improve the quality of running schools, achieve steady endogenous growth, the integration of acquired schools is carried out smoothly, and the conversion and construction of new campuses are expected to contribute to the growth of the company's performance.
Based on the 2021 medium report, we maintain the company's 2021-2023 homing net profit forecast of RMB 4.01 / 608 million, with an increase of 23.2%, 37.5%, 10.4%, corresponding to EPS 0.25, 0.34, 0.38, and the current price, corresponding to PE 6X/4X/4X, maintaining the "buy" rating.
Risk tips: the expansion of enrollment is not as expected; the speed of expansion is not as expected; the implementation of private education policy is higher than expected.