Shengtong Co. (002599): Steady increase in performance in 19 years Lebo launched expansion

Shengtong Co. (002599): Steady increase in performance in 19 years Lebo launched expansion
Company dynamics The company released its 2018 annual report and realized revenue of 18 in real terms.4.4 billion yuan, an increase of 31.4%.Attributable net profit is 1.2.4 billion, an increase of 34.2%, EPS is 0.38 yuan, ROE = 7.86%, the company plans to increase 7 shares for every 10 shares. Matter comments The steady growth of publishing services, the rapid development of quality education and the growth of profits have promoted the steady growth of the company’s comprehensive publishing services business and achieved revenue15.95 trillion, an increase of 30.7%, accounting for 86.48%, still the company’s main source of income; education and training business grew rapidly, achieving revenue2.49 trillion, an increase of 36.4%, the proportion increased by 0.50pct to 13.52%.The consolidated gross profit margin is 19.82%, which is basically the same as the same period of last year. Among them, the publishing and education and training gross margins were 15 respectively.32% (-0.39 points) and 48.61% (+1.04pct), the slight decline in the overall gross profit margin of publishing was mainly due to the increase in raw material prices, and the increase in the gross profit margin of education and training was mainly translated into the increase in the utilization rate of the document growth campus and the establishment of some short-term courses with higher gross margins.The company’s period expense rate increases by 0 every year.68pct to 12.92%, mainly due to the increase in financing borrowings, leading to an increase in the financial expense ratio of more than zero.87pct to 0.90%.The company’s short-term borrowing surplus at the end of the period was 1.09 million yuan, an increase of 165 over the beginning of the period.5%.Initial realization of attributable net profit1.2.4 billion, an increase of 34.2%, net margin is 6.73% (+0.14pct).In terms of business, the net profit of comprehensive publishing services was 71.89 million yuan, an increase of 14.3%, net interest rate 4.51% (-0.65pct); education and training net profit was 52.27 million yuan, an increase of 73.0%, net interest rate is 20.97% (+4.71pct), with a significant increase in profit, with a profit contribution of 42%.The initial deducted non-attributable net profit was 89.53 million yuan, an increase of 19.7%, mainly due to an investment income of 21.57 million yuan, including the sale of 50% of the shares of Korea Lebo to obtain investment income of 8.41 million yuan, the sale of programming cats total 2.11% equity (remaining holdings 1.10%) to obtain investment income of 10.66 million yuan, sell all 3% of the shares held in Little Orange Castle to obtain investment income of 1.56 million yuan.The company expects to achieve a net profit of approximately 10.16 million yuan to 12.2 million yuan in 19Q1, an increase of 0-20%. Lebo Education: The course system has been gradually improved, and the establishment of outlets has accelerated. The Lebo education curriculum system has been continuously improved. The core robot education curriculum has added UARO courses for children aged 4-6, building blocks for lower grades in elementary school, and orders for higher grades in elementary school.Film robots and humanoid robot courses for junior high and high school students, and also launched Scratch, Python programming courses.The company will conduct robotics courses in 19 years.0 upgrade, and vigorously develop programming education and artificial intelligence education.Secondly, LeBao Education accelerates the construction of outlets and sinks channels.As of the end of 18 years, Lebo has 106 directly-operated 杭州桑拿网 stores (+13) and 238 franchise stores (+58) in 25 provinces and municipalities, covering all first- and second-tier cities, involving all third- and fourth-tier developed cities, and the number of documents exceeds 6 Million people.In 19, the company plans to increase the number of directly operated stores by more than 30%, the corresponding lower limit is about 138, and the number of franchised stores will be expanded to about 400.The company’s existing stores are mainly located in first-tier cities. In the future, it will merge the densely woven first-tier city outlets. It is expected that each city will even add 10-20 stores to replace the sinking channels to further develop second- and third-tier cities.Third, improve the competition and rating evaluation system. The company has successfully opened more than 10 well-known 北京桑拿洗浴保健 domestic and foreign youth robot competitions and achieved excellent results.Multi-category events can provide scholars with a wealth of learning and application scenarios.At the same time, the company cooperated with the Industry and Information Publishing Group, a subsidiary of the Ministry of Industry and Information Technology, to participate in the planning and organization of the “artificial intelligence technology level test”, which has gradually been introduced to the market, and provides proof of the level of the artificial intelligence system’s ability for the advanced education and internship of young people at elementary school level and above., Help stimulate the demand for artificial intelligence learning. Investment suggestion Due to the company’s construction of the Happy Bo outlet, it is expected that the cost of stores and promotional expenses will increase. We lower the attributable net profit for 2019 to 1 to 1.55/1.$ 8.3 billion, and an increase in forecasted net profit attributable to 2 in 2021.2.4 billion yuan, the corresponding EPS is 0.48/0.56/0.69 yuan / share (the original 19/20 EPS was 0.53/0.64 yuan / share), corresponding PE is 26/22 / 18X (based on the closing price of 2019/4/11).The company will accelerate the development of quality education sector in 19 years, continuously improve education, and publish a comprehensive service ecosystem of culture.Maintain the “overweight” rating. Risks remind that the growth of publishing business is accelerating, the development of Lebo is less than expected, and the risk of school license qualifications.


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