Public Education (002607) first coverage: Vocational Education Group unveiled to share a better future

Public 杭州夜网论坛 Education (002607) first coverage: Vocational Education Group unveiled to share a better future

The high-growth national private vocational education and training group company, as the leader of domestic vocational education and training institutions, has been cultivating civil servants for many years. Teacher recruitment and public institution recruitment have developed rapidly. In the areas of postgraduate entrance examination, medical treatment, accounting examinations, and IT, etc.There is also a multi-point layout, and the stock advantage businesses are expected to continue to benefit from an increase in participation rate and an increase in the number of participants.

The structural contradictions of the labor market in developing countries are prominent, and heavy policies are gradually emerging. Supporting 杭州桑拿网 marketization and standardized development is expected to give birth to comprehensive vocational training groups.

CCP Education has deep R & D accumulation, complete curriculum system, nationwide network layout, and scale advantages continue to appear.

We are optimistic that the company’s existing business will continue to grow rapidly, relying on R & D, products, services, and scale advantages to rapidly increase the market share of the new circuit.

The company’s 18-20 EPS is expected to be zero.

18/0.

28/0.

39 yuan with a target price of 14.

28-14.

56 yuan, the first coverage given a “buy” rating.

R & D, national distribution, thick and thin, and public education started with the public examination business. Relying on the advantages of R & D and outlets, it has extended to other race tracks. It has launched a number of civil servants, institutions, teacher recruitment exams, accounting exams, postgraduate exams, and IT.Vocational training courses.

The training mainly focuses on face-to-face small classes, and improves the teaching efficiency and teaching experience through OAO (combination of online and offline). Course products are divided into ordinary classes and agreement classes, which last for 17 years, and agreement classes account for 73%.
The company insists on R & D-driven, the headquarters is the total R & D center, and the ratio of R & D expenses to revenue in 2017 has reached 7.

7%.

As of April 18, the company has 619 directly operated branches, covering 31 provinces, municipalities and autonomous regions, and 319 prefecture-level administrative regions, and will continue to sink into each other in the future.

“Big backstage, light front desk” mode can support the company to continuously launch more rich and better quality curriculum products, quickly occupy the market, enhance brand power, and widen the moat.

The market space is broad, and the leader is expected to enjoy the industry dividend. According to Vulcani, the 17-year qualification certificate and recruitment training market size in the vocational education market is 211.2 billion yuan.

Favorable policies have come out frequently. The “Implementation Plan for Vocational Education Reform” issued by the State Council in January 2019 proposed to start the pilot work of the “1 + X” certificate system, promote the comprehensive strengthening of in-depth cooperation between schools and enterprises, and the “marketization” of vocational education will be future developmentDirection, the market is expected to give birth to large comprehensive vocational education groups.

Sino-Government Education has developed rapidly, and its operating income increased by 24% / 56% in 16-17 years. In 2017, civil servants, public institutions, and teachers accounted for 82% of the revenue from recruitment and training. In the future, it will benefit from the increase in the number of recruits, the increase in participation rate and the company’s market.Increased share, these three businesses are expected to maintain high growth.

Other sequences are developing rapidly, and it is expected to hatch into some leading track brands in the future.

The private vocational education leader will develop rapidly in the future. For the first time, it will cover the “buy” company as the leader of internal vocational education and training institutions. It has deeply cultivated the field of civil service recruitment for many years. It has a leading industry in scale and profitability.Teaching, management and other successful models are copied to teachers, IT, financial accounting, medical and other tracks to create a comprehensive vocational training platform.

According to our profit forecast, net profits of listed companies for 18-20 years11.

1/17.

6/23.

800 million, comparable to the company’s 19-year average PE 50 times. The company is a leader in vocational education, with deep R & D, a nationwide layout, and a high-speed growth period. It is given 51-52 times the target PE, corresponding to a target price range of 14.

28-14.

56 yuan, the first coverage given a “buy” rating.

Risk warning: policy change risks, academic growth is not up to expectations, cross-track replication is not up to expected risks.