Shengtong (002599) 2019 Interim Report Review: Stable Performance Publishing and Steady Development of Education Business

Shengtong (002599) 2019 Interim Report Review: Stable Performance Publishing and Steady Development of Education Business
I. Overview of the incident The company announced its 19-year interim report on August 29, 2019. The report is expected to achieve main business income8.72 ppm, a ten-year increase2.59%; the company’s net profit attributable to owners of the parent company was 47.48 million yuan, an increase of -5 in ten years.86%; net non-recurring profit or loss attributable to shareholders of listed companies was 3,851 million, a long-term increase of 2.4%. Benefiting from the adjustment of business structure and the improvement of asset 青岛夜网 operation efficiency, the company’s operating cash flow improved significantly in the first half of the year, with a net operating cash flow of 1.08 thousand yuan. Second, analyze and judge the continuous development of Lebo Education and promote the steady growth of education and training business report. Formulate the company Lebo Lebo “Thousand Store Plan” and promote 3.0 Teaching upgrades to promote rapid growth in business revenue.The company plans to achieve a total of 1,000 directly-operated and franchised stores in the LeBao system by 2022. The report indicates that the company has added 10 directly-operated stores and 40 additional franchised stores, which has significantly accelerated the speed of opening stores.The company promotes the rapid development of education and training business through endogenous extension and various methods, actively transforms into a comprehensive quality education group, and realizes revenue in the first half of the year1.220,000 yuan, an increase of 39 in ten years.49%. The comprehensive service capabilities of the entire industry chain ensure the steady development of publishing services. The company relies on the comprehensive service capabilities of the entire industry chain to ensure the steady development of publishing services.The company has five production bases in Beijing, Shanghai, Hebei and Tianjin, involving publication printing, packaging printing and other fields, and has comprehensive service capabilities in the entire industry chain.At the same time, in the first half of the year, the company obtained C9 qualification certificate, “Beijing Publication Printing Service Capital Core Function Key Guarantee Enterprise” and other honors, achieving revenue of 7.500 million US dollars, net profit after deducting non-recurring profits and losses of 3538 million, an annual increase of 24.69%. The beneficiary industry policies are favorable, and the actual core competitive advantage of expanding research and development expansion is one. Instead of promulgating multiple policies that benefit STEAM education, the market demand maintains high growth. The company further enhances competitiveness by expanding research and development expansion.Since 2018, the “General Senior High School Curriculum Program and Chinese Curriculum Standards” and “Education Informatization 2″ have been successively introduced.”0 Action Plan” and other related policies, clear artificial intelligence, programming courses will be replaced by junior and senior high school proficiency tests, promote the improvement of STEAM education and education within the academic system, and promote the need for training to become rigid.In addition, in order to keep up with national policies and industry development trends, the company increased investment in research and development, increased research and development expenses by 15.44 million yuan every half year, and increased by 47.35%.Considering the recent rapid growth of the STEAM children’s programming education industry, the industry is facing good integration opportunities in the next 2-3 years. The company will change the platform advantages of listed companies, merge and integrate high-quality companies, 杭州桑拿 and expand and strengthen the deep children’s programming education business. Third, investment recommendations maintain the “recommended” level.The company’s children’s programming education business and publishing business have developed steadily. Among them, the expansion of Lebo Lebo stores has accelerated. In the future, it is expected to continue to benefit from the STEAM training and the market expansion brought by the need. Therefore, we expect the company’s EPS to be zero in 19-21.28/0.34/0.41, corresponding to the current price of PE is 16X / 13X / 11X. Considering that the Wind A-share commercial printing industry was 18X in 19 years, the company’s overall expectations are low, and the future prospects of the business are good. Maintain the “Recommended” rating. 4. Risk warning: industry competition intensifies, business expansion is less than expected