Events:
The company announced an annual report of 470 million yuan in income, 38.47 million yuan in operating profit and 40.98 million yuan in net profit, which were 20.68%, 24.86% and 23.12% respectively over the same period last year, with earnings per share of 0.16 yuan. The performance was slightly higher than expected (the original forecast EPS was 0.14 yuan). The distribution plan is 0.29 yuan (including tax) for every 10 shares. Revenue in the first quarter of 2018 is expected to grow by about 22% year-on-year, while net profit is expected to grow by 30% and 60%.
Comments:
1. Brand accumulation promotes the improvement of quantity and price of the company's products.
With the increase and improvement of the company's brand series and the improvement of brand market awareness, brand promotion goes deep into second-and third-tier urban areas, with concerts, master classes, piano competitions and other promotion activities, sales have increased steadily. At the same time, comply with the trend of Internet sales, on the basis of offline sales, actively promote the simultaneous operation of online e-commerce platform, expand sales channels, in JD.com, Tmall have brand flagship stores. In 2017, the company sold 35117 pianos (upright + grand pianos), an increase of 14% over the same period last year, and the average price benefited from structural adjustment increased by 3.5%, piano sales revenue increased by 18.11% over the same period last year, and the gross profit margin still increased by 1.12% despite the rise in raw materials. The company's brand strength has been recognized by customers, and the bargaining power is gradually reflected.
2. The intelligent piano business has officially started.
In 2017, the company launched the intelligent piano I piano1, which integrates traditional piano music functions and modern technology. Intelligent piano is a new generation of piano developed by introducing modern computer and Internet technology on the basis of retaining the music characteristics and performance functions of the traditional piano. Helen I piano1 is equipped with intelligent hardware, mute system and special APP, which makes the intelligent mode of piano distance teaching and self-study to a higher level. Intelligent piano business is based on a consideration of the current market, while providing intelligent piano products, build value-added education services, and further attract the attention of social and family cultural consumption.
3. the company's art education business may accelerate its development in the past 18 years.
1) the company officially launched the intelligent piano classroom in 2017, which combines the APP course of Walt Disney Company animation intelligent piano, the teaching method of Vienna University of Music and Performing Arts, and Helen intelligent piano as teaching aids to enlighten children's way of learning piano. 2) since 2014, the company has been operating by signing cooperation agreements with local training institutions, and the art education and training course system is defined as art enlightenment, music education, art education and dance education. 3) the EMP music enlightenment project in Vienna, following the European idea of music enlightenment education, began to land in China in 17 years.
4. Maintain the "highly recommended-A" rating. After years of R & D investment, the company has accumulated a good reputation, sales began to substantially outperform the industry, while benefiting from the continuous upgrading of consumer product structure, the future is expected to maintain a good situation of rising prices and volume. From 2018 to 2020, the EPS was 0.22,0.27,0.33 yuan respectively, which was 35%, 20% and 23% respectively compared with the same period last year, and the corresponding 18-year PE and PB were 37 and 2.4 respectively, maintaining the "highly recommended-A" rating.
Risk hint: the progress of art education and training is lower than expected
