Source: Sina Securities
In the fifth year of listing, China Oriental Education (00667.HK) took another big step away from the original goals.
Five years ago, China Oriental Education became the “first share of vocational skills training” in Hong Kong.At the key node for listing in Hong Kong, the prospectus disclosed this major decision -it was used to throw 1.9 billion yuan and use 45%of the listing funds to raise funds for regional center construction.Urban preparation regional center.
At present, the first phase of Anhui, Sichuan, Shandong, and Guizhou Vocational Education Industrial Park has been fully completed and put into use. Henan Vocational Education Industrial Park is about to be put into use. The investment projects of vocational education industrial parks in Jiangsu and Jiangxi are being planned.Regional centers across the country have invested about 3 billion yuan, and it is planned to invest 2 billion yuan in the future.
Unlike the traditional leasing expansion model, the regional center uses its own land for construction, and the method of multi -campus integration will help radiate students from surrounding areas, increase scale effects, integrate resources, save school costs, and help to increaseThe school level is upgraded to the technician college.While improving the quality of school running, the group can also achieve high -quality development.
”If the development of the entire vocational education, if you want to take a step in the next level, to achieve better quality improvement, you must have regional centers.” Hua Jun, assistant to the chairman of China Oriental Education Group and the Minister of investment and acquisition department, told the interface education that this is the long -term development of the group.To say, it is also the foundation of settlement.
From the perspective of the external environment and policies, especially after the end of the epidemic, the local area strongly supports the development of emerging industries. The problem of supporting it is the lack of skill talents.The macro support of national policies and the urgent needs of industrial development have added dual guarantees to the landing of regional centers.
As the direction of the strategic development of the group, the regional center plays the role of the “leader of the pilot”, so that the “vocational education carrier” in Eastern Education in China is farther and farther.While achieving its own high -quality development, it continuously explores the new model of serving local development, and builds high -level skilled talents for the high -quality development of the region.
01 | scale effect, bringing cost optimization
As a strategic project of China Oriental Education, the self -built regional center has become the only way for the group development process.
The reason for the establishment of the regional center is that the group has developed after more than 30 years. With the continuous growth of the school volume and the number of students in the school, the development has encountered a huge bottleneck -want to rent a one to accommodate more than 3,000 people at the same time and meet the complianceThe campus of school conditions is extremely difficult, and a school is split into multiple campus management. It has difficulty in management, low work efficiency, and high operating costs.
More importantly, the establishment of a regional center will bring a series of benefits that can integrate resources and save the cost of running schools; it can also improve the quality of school running and achieve high -quality development; it can also improve the level of school running and meet the needs of the country.
From a cost perspective, before implementing the regional center strategy, the group realized the expansion of school -running outlets by leasing, and the rising lease expenditure was always one of the important parts of the group’s operating costs.The own model can help the group respond to the risk of rent up, while avoiding the relocation due to the lease expires or the rent that exceeds the scope of the enterprise.
At the same time, regional centers can play a cooperative effect of large -scale economy and cost.The source of students in a certain area through the regional center can form a scale effect, and can also save the duplicate expenses brought about by the scattered school outlets.
According to the Research Report of Minsheng Securities, according to the radiation scope of the regional centers of the East East Education and local students, a mature regional center is expected to reach 150,000 to 20,000 in the school size.The size of the students can reach 30,000.
Thanks to the scale effect, the percentage of the income of changes in the teaching -related consumables of the regional center will be slightly lower than the ordinary school outlets.After entering the mature stage, the agglomeration effect is superimposed with brand effects, and the dependence of enrollment on marketing activities will be reduced. The above -mentioned brokers predict that the sales cost rate will be less than 20%.Under the scale advantage, the centers in each region can reach 55%-60%, and the net interest rate may reach 20%.
Regarding costs and investment, as a private listed company, many investors will throw questions. Why should the group make such heavy asset investment in the economic downturn?Will it affect the release of the current profit?
The answer given by Hua Jun is negative.He introduced to the interface education that the construction of the regional center was carried out in batches and adopted the replacement model. After the first phase of the first phase was completed, the students from the original rental campus were relocated to the new campus; in the later period, with the increase in business development and the increase in students, they could add teaching buildings and dormitory buildings to the dormitory building.Construction.
In terms of asset structure, Hua Jun pointed out that the newly invested regional center area accounts for only about 20%of the operating area of all schools in the group.It will not affect the company’s original operating capabilities and economic benefits.
Hua Jun admits that the operating cash flow is indeed disturbed by the epidemic in the previous two years, but he also revealed that since last year, the group’s operating cash flow has steadily recovered to the normal level before the epidemic, which is enough to cover the current regional center construction needs.
From the perspective of cost investment and returns, the group also counted a account, and finally concluded that he hopes to recover all capital expenses in 10-15 years.
Huajun expects that the initial investment cost of regional center construction and the saved lease cost will be basically achieved in the first three years.”So it will only affect the cash flow of that year, but it has not affected the profit of the year.” He made it clear that the regional center was invested and constructed by the group’s own funds. There was no interest liabilities. There were still more than 2 billion cash on the group’s book.reserve.
02 | How does the seven regional centers land?
Regardless of the economic accounts or the macro development, the self -built regional center is an imperative long -term benefit project, and the key is to land.
Since the implementation plan was proposed in 2019, the Group has gradually discovered that the three target cities in Beijing, Shanghai, and Guangzhou, which were proposed by the original plan, were economically developed areas, with lack of large -scale land resources and high land costs.Especially in Beijing, considering the population solution, many educational institutions and universities have even relocated to the area outside the main city.
After the listing, the group quickly adjusted its strategy and anchored these two key points in the choice of regional center: First, it must be the population and source of the source, and the number of students where the group is located exceeds 10,000.Second, the local government has a clear goal of vocational education development and provides a series of supporting policy support.
Anhui Hefei Headquarters is the first regional center built by the group.Hua Jun recalled that when the land was in 2008, this land was still a barren farmland.Today, the area where the headquarters is located has developed into a vocational education cluster that can accommodate nearly 30 public, private secondary vocational and higher vocational colleges, and is known as the vocational education city of Hefei.
”Xinhua was the first to” open up “on this land. The construction area of the first phase of the project reached 110,000 square meters, and it was announced in less than 10 months.” Hua Jun said that this was once called “Xinhua Speed.As of the end of 2023, the number of students in the Anhui Regional Center exceeded 30,000.
Then it was the center of Jinan, Shandong.First, Shandong is a large vocational education province. As the first national vocational education innovation and development highland, and the first provincial -provincial modern vocational education system pilot province, the first provincial vocational education innovation and development highlands and the first provincial provincial regional modern vocational education system.Education reform has obviously provinces.The second is that China Oriental Education’s total sources of three colleges and universities in Shandong have exceeded 10,000 sources, and they already have prerequisites for establishing regional centers.
Chengdu, Sichuan, is the concentrated source of China Oriental Education in the southwest area and becomes the third zone center.
In order to promote the construction of Sichuan high -skilled talent cultivation carriers, China Oriental Education has also recently become the backbone of the “Sichuan Sichuan” key project construction.And the youth professional enlightenment training project, accelerate the cultivation and creation of more Tianfu craftsmen and high -quality industrial army.The three key projects of “Sichuan Sichuan” that launched this time will inevitably promote the in -depth participation of professional capacity building work to participate in the strong chain of the industrial circle and the high -quality economic development.
The regional center of the landing is also Guiyang and Zhengzhou, Guiyang and Henan. The choice of these two places still follow the above principles.
In terms of strategic layout of the regional center, the Group’s operations in various places follow a certain basic principles, and will also develop differentiated development according to local conditions.
Taking Shandong as an example, China Oriental Education has obtained two licenses of two technical schools in the local area. The current approach is to set up two independent technical schools on the same land to maintain each other.
The Chengdu area has its particularity. At present, Chengdu New Oriental Culinary and Wantong Automobile Joint Declaration Technical College.The technician college needs to carry out a multi -professional and parallel teaching model. After discussing how to integrate resources by the group, it is decided to jointly establish a technician college covering a comprehensive professional major such as cooking and cars.
In addition to the above five major enrollment provinces, Nanjing and Nanchang, Nanjing and Jiangxi in Jiangsu have also become part of the first batch of regional center planning.The China Oriental Education Plan will complete the project construction and landing in the next two years, and it is expected to be put into use by 2026.
”The group strategy will focus on improving the quality and brand reputation of the existing seven regional centers to ensure the sustainable development of various regional centers. After achieving this goal, consider whether to continue to expand the new regional center in the future.” Hua Jun said.
03 | Improve the quality and level of school running, and achieve high -quality development
From the perspective of the school level, the self -built regional center is still a key measure to improve the quality of school running and achieve high -quality development of vocational education.
The construction of a large -scale regional teaching center will concentrate the Group’s various brands of courses, which is more complete in the teacher team, teaching facilities, and course diversity, which will help cultivate compound talents.
Taking the cooking business as an example, entrepreneurial students not only need to learn cooking techniques, but also must be proficient in knowledge including operating takeaway platforms and business promotion.The comprehensive regional center can meet the talent skills of the market and increase the employment and entrepreneurial rate of students.
China Oriental Education’s investment in teaching hardware facilities and investment in funds is not supported.Interface Education has previously noticed that the Group regularly updated the teaching hardware equipment, software, etc. when visiting the headquarters of the East Education Anhui Headquarters and Chengdu Center Center in China offline, and also established a special fund, which is mainly used for competition training.
In the second National Vocational Skills Competition held last year, Yang Xiaojian, the New Oriental Culinary Education, won the first place in the cooking (western food) project.The competition is the highest specifications in China, the most competitive projects, the largest competition, the largest scale, the highest level of skills, and the most influential national vocational skills competition. The competition of related projects also represents the highest level of domestic skills competition in China.
In the process of continuous participation, the construction of the Chinese Oriental Education Skills Team and the strength of school running have also been fully demonstrated, which has been recognized in the industry. This is also inseparable from the teachers and venue guarantees of the regional center.
On the one hand, many group teachers have received invitations from the Organizing Committee of the National Vocational Skills Contest as a referee. At the same time, their colleges and universities have also hosted the provincial and municipal competitions of the World Skills Contest many times, and were selected as the China Team Training Base in the World Skills Contest.
According to Teacher Oman, the school has established a high -level teaching and R & D team, including experts in high -skilled talent think tanks, members of the World Championship, and world American artists from France, Italy, Japan, etc.
The school attaches great importance to practical training outside the classroom, and has created simulated realistic scenes such as the “Standard Training Base of the World Skills Competition”, “International Large -scale catwalk”, “Ohmana High -end Fashion and Beauty Salon” for students to cultivateHigh -skill, high adaptability fashion beauty industry talents.
Another level of high -quality schools is reflected in the improvement of school level to meet the needs of the country.
The state of the school’s school running schools is divided into three categories from low to high, which are technical schools, senior technical schools and technicians colleges.According to the “Implementation Plan for the Equalty Project of Vocational Schools to Met the standards” according to the five departments such as the Ministry of Education, higher -level academic licenses have higher requirements for key monitoring indicators such as the campus occupying area, construction area, teachers, and equipment and facilities.
Hua Jun believes that the group can declare a higher level of academic qualifications through the regional center and become a stepping stepping tile for the bidding technician college.This can expand the student group, increase the attractiveness to high school graduates, at the same time extend the academic system, reduce costs, and alleviate the pressure brought about by the reduction of population cliffs and economic downturn.
”The core is the problem of the so -called cake brought about by the decline in population dividends.” Hua Jun said to the interface education that the regional center enabled China Eastern Education to gain a certain advantage in market competition, especially with some and some some of them.Compared with the public colleges of the provincial capital cities at the head, the group can still occupy the initiative in the competition of the source and market.
04 | Sitting on policy dividends, standardizing school running school
China Oriental Education spends strong energy to build a regional center, and is essentially for employment.
In Chengdu Omega School, there is a giant fondant cake with an area of about thirty or forty square meters with the theme of “Ice and Snow”.Teacher Omeich told interface education that according to market price estimates, it is worth more than one million yuan.
This is a unique graduation gift for the school at the time of graduation.All the flowers on the cake were made from 44 students. They used the rest time of the evening to make more than a month.In addition to handmade flowers, this “castle” modeling work is also independently completed by these students.
All Omeica products are divided into two categories, one is classic products, and one is market -driven product, that is, there is this direction in the market, but it has not yet become popular.For example, two years before the bread market popular, in Chengdu Omegi’s course, European bread and low -oil and low -fat bread have been increased.
”After graduating, the student just meets the market in the market.” Teacher Omeci said that at the current Chengdu, about 30%of related companies in Chengdu are all sent by Omegi. The salary of students after graduation is rich.
There are also some students who choose to start a business after graduation. Omegi will provide entrepreneurial counseling and provide site selection, decoration, and raw material support.Among the outstanding graduate students displayed by Omechi, the “Qiuhe Baking” founded by Liu Jieqiu currently opened nine branches, with an annual profit of 420,000 yuan.
Not only Emich, Omann, and New Oriental cooking graduates are also “fragrant” in the employment market.
According to the relevant person in charge, at the Omann’s school-enterprise cooperation orientation class, the monthly salary of graduates should hire the hairstyle of 6000-7500/month, the long monthly salary of reserve stores reaches 8000-10,000 yuan, and the monthly salary of senior managers is as high as 12,000 -1.5.5Wan/month.In March of this year, the 2023 financial report disclosed by Eastern Education in China showed that the employment rate of Omann graduates was as high as 95.7%.
More importantly, the strategy of regional center centers is in line with a series of major policy orientations such as vocational education and quality and excellent vocational education.
The “Implementation Plan for the Project of Vocational Schools to Metropolitania Conditions” issued by the Ministry of Education and other five departments mentioned that all localities should coordinate regional vocational education resources, combine regional economic and social development needs, and adopt merger, group running schools, termination of schools, etc. to optimize vocational schoolsLayout to reasonably determine the scale of enrollment.
The government has high hopes for vocational education and clarifies its strategic position in promoting the development of local industry.Vocational education is deemed to be a key link for building a stable talent supply chain, and it is expected to create major benefits in the process of investment promotion and industrial projects in the future.
”The government is very clear about the promotion of vocational education on emerging industries, especially in the link of building a talent supply chain.” Hua Jun told interface education, “The government does not just pay attention to the taxation contribution of schools like our schools, but also values that we can do it for the local area.Talent transportation and consumer pulling.
He pointed out that vocational education institutions can attract tens of thousands of students to settle in a short period of time with their large -scale school running capabilities, forming a significant agglomeration effect, and effectively boost the local economy and consumer market.Vocational schools represented by Eastern Education in China not only become local economic growth points, but also inject strong tendons into the long -term development of local industries through the training and reserves of skill talents.
Hua Jun said that the Group will output large -scale industrial skills talents to flexibly adjust the curriculum structure according to the characteristics of the local industry, build school -enterprise coordinated innovation, and customize the cultivation of high -skilled talents to help enterprise development.
Take BYD’s settlement as an example, “The municipal government found us for the first time, asking us to go all out to ensure the supply of skill -oriented talents in Hefei BYD.”Services, this move was highly recognized by BYD headquarters.
Not only that, Wantong also customized the training talents through in -depth cooperation with well -known companies such as Chery and Weilai Automobile.
”Enterprises are willing to share advanced technology as soon as possible, and engineers directly participate in teaching resources development.” Hua Jun said that Wan Tong did not develop new technologies independently, but transformed enterprise technology into teaching materials and teaching outlines.This offers a course to ensure the cultivation of skill talents that meet market demand and specific needs of enterprises.
Thanks to the in -depth cooperation and customized talent training model with enterprises, even during the epidemic, China Oriental Education can still maintain a high employment rate of about 95%.
At the end of this year, Lan Yuquan, who is about to graduate, will also face employment or further studies. He told interface education because he won the first prize in the vocational skills competition of the 6th technician college in Chengdu.Qualifications.
For the future, his short -term plan is to focus on self -improvement and consolidation of existing skills, and hopes to continue to improve professional ability and technical level by participating in more competitions.
As a bridge between connection technology and talents, the professional skills training industry not only supports and promotes the development of the digital economy, but also promotes the digital transformation of enterprises and the entire society.The strategic opportunity period of vocational education has come, and companies in the track will face huge industry opportunities and development potential.
