1. FY21's revenue was 2.324 billion yuan, an increase of 48.2% over the same period last year. On November 29, 2021, we hope that Education will release FY2021 results (2020.09.01-2021.08.31); FY21's revenue will be 2.324 billion yuan, an increase of 48.2% over the same period last year.
Specifically, the breakdown of expected income in the subdivided areas from September 2020 to August 2021 is as follows: tuition fees 1.932 billion yuan (83.1%); boarding fee income 157 million yuan (6.8%); other income (including books and daily necessities sales income) 235 million yuan (10.1%).
Income increased by 756 million yuan, or 48.2%, over the same period last year. The increase is mainly due to (I) a substantial increase in the enrollment of schools under the Group and an increase in the fee standards of some institutions; and (ii) newly acquired institutions (Yingdi University, Nanchang Film and Television, Entrepreneurship College, Jinken College and Guizhou Qiannan Institute of Science and Technology) have been included in the Group's financial statements.
The cost of sales of FY21 was 1.148 billion yuan, an increase of 45.2% over the same period last year, and the adjusted cost of sales was 1.087 billion yuan, an increase of 45.8% over the same period last year. This is mainly due to (I) the increase in the enrollment of the original institutions of the Group corresponding to the increase in the number of teachers and the investment in teaching facilities, and (ii) the corresponding increase in costs after the completion of the acquisition of a number of schools in the current period.
2. The adjusted net profit of FY21 is 866 million, an increase of 50.5% over the same period last year.
FY21 adjusted gross profit of 1.237 billion yuan, an increase of 50.4% over the same period last year, and adjusted gross profit margin of 53.2%, year-on-year + 0.8pct.
The main reasons are: (I) the scale effect of collectivized schools is shown, and the cost does not increase in proportion with the increase in the number of students; and (ii) the acquisition of schools has been initially integrated and improved.
As of FY21, the number of educational schools is 21, an increase of 7 over the past 20 years. The group school network includes 8 undergraduate universities, 11 colleges and universities and 2 technician colleges in China.
3. The number of schools was 21 and the number of students was 196700, an increase of 40.4% over the same period last year. The total number of students in the group reached 196700, an increase of 40.4% compared with the number of students in FY20. Among them: the number of students in undergraduate colleges and universities was 98800, an increase of 38.6 percent over the same period last year; the number of students in colleges and universities was 80200, up 32.3 percent over the same period last year; and the number of students in technician education was 17700, an increase of 115.4 percent over the same period last year.
Raise earnings forecasts and give buy ratings
FY21 Group operates and invests 19 higher education schools and 2 technician colleges at home and abroad, covering 10 provinces and regions of China and Malaysia. As of November 1, 2021, the enrollment data announcement date, it is hoped that the total number of students in the school will reach 232059, a record high.
We expect the company's FY22-23 revenue to be 2.9 billion yuan and 3.8 billion yuan respectively. With the growth of the company's school students, the release of economies of scale and the improvement of profitability, we raise the company's 22-year performance forecast from 1.08 billion yuan to 1.12 billion yuan. It is estimated that the company's net profit after adjustment in 22-23 will be 1.12 billion yuan and 1.36 billion yuan respectively, and the EPS will be 0.14 yuan and 0.17 yuan respectively. The PE is 12x and 9x respectively.
Risk hint: the enrollment of its schools is not as expected; the effect of M & An integration is not as expected; the risk of raising tuition fees is less than expected