【英文】汇丰银行报告：中国教育行业报告China Education Initiate coverage: Time to study specialist subjects（62P）

英文研究报告 2019年12月12日 09:09 管理员

Environmental: The company is a low-energy, pollution-free education enterprise and is not regarded as a discharger of key pollutants by the environmental protection department. Social: 1) Employment – the company provides jobs for highly educated talent. The number of people recruited in the last three years total 2,374, 8,204 and 6,644, respectively; 2) employee benefits – the company provides several kinds of welfare and training programmes for employees; and 3) social welfare – the company provides financial assistance to poor students by setting up scholarships. Governance: 1) 42.9% of the board members are independent; 2) the roles of the chairman and the CEO are separated, which benefits corporate governance; and 3) the largest shareholder holds 41.4% of the total equity, and the ownership concentration ratio remains high. Key downside risks Policy risks: The company’s operations may be adversely impacted if more stringent regulatory requirements are introduced in relation to the education training industry. Decline in the number of candidates: The reform of governmental bodies or public institutions may reduce staffing and, as such, lead to a decline in the number of vacancies and acceptance and the number of candidates. The company’s earnings may be lower than expected as a result. Slower-than-expected expansion: In addition to its existing businesses, the company is also expanding into training for postgraduate entrance exams, judicial exams, accounting exams and other exams. However, it is difficult to predict the progress of the new businesses, given there is little overlap with existing businesses. Competition from online training: The company offers offline training services. However, some of its peers provide online training services, which feature faster expansion and lower costs. This may dampen the company’s business outlook.

Founded in 2005, Guangzhou Shiyuan Electronic Technology (CVTE) was listed on the A-share market in January 2017. The company’s main business is the design, development and sale of LCD main control boards and interactive panels for the education market. Two of its leading products are Seewo for schools and MAXHUB for corporates. In 2018, revenue from Seewo was RMB5.68bn, accounting for 90% of the interactive panel revenue and 33% of total revenue. The company has the highest market share of interactive panels for schools in China (40.4%) in 1H19. In 1H19, the company generated revenue of RMB7.2bn, up 15.85% y-o-y. LCD main control boards contributed RMB3.9bn, up 8.8% y-o-y, and intelligent interactive panels contributed RMB2.438bn, up 17.1% y-o-y. Net profit attributable to the shareholders of the listed company was RMB564m, up 46.4% y-o-y; net profit attributable to the shareholders of the listed company after deducting non-recurring gains and losses was RMB535m, up 45.7% y-o-y.