Sign the Strategic Cooperation Agreement with the School Planning, Construction and Development Center of the Ministry of Education
On July 27, the company announced that it formally signed a "Strategic Cooperation Agreement" with the School Planning, Construction and Development Center of the Ministry of Education. The two sides comprehensively promote future-oriented research on children's education patterns, strategies and policies for children's development, cross-disciplinary child growth research, supply chain reform of children's services, technological innovation and industrial chain in the field of children.
The School Planning, Construction and Development Center of the Ministry of Education gives full play to the advantages of educational planning and design, national educational reform and innovation elements platform, national educational reform think tanks and experts, as well as industry guidance and management; Willoux will give full play to its advantages in the field of education market, new science and technology equipment, financial investment and so on. Specifically, the two sides cooperate in the following aspects: the research and construction of the research and experimental base of ① Future Children Center ② jointly promote the establishment of Guangzhou Future Children Research Institute and ③ jointly promote the landing of teacher training programs for children's growth.
Prior to this, the company announced that it intends to acquire Xiao Orange Castle, the market leader in children's drama performances, and deeply cooperate with the original business to increase the layout of children's comprehensive growth platform. The company plans to acquire Xiao Orange Castle, the leader of the children's drama market, in the form of cash and stock issuance (the acquisition consideration is 18 years, 16xPEBE, 2019-20, maintaining a growth rate of 20% and 30%; the way is 50% cash + 50% share issue), this matter does not constitute related party transactions and major asset restructuring, and this transaction is carried out under the premise of non-suspension of shares.
Xiao Orange Fort integrates children's plays, theme creative art exhibitions and parent-subnet comprehensive video programs, focusing on the standardized operation and quality training of parent-child cultural and arts products and services for 2-and 12-year-old children and parent-child families. At present, it has laid out a number of fixed weekend parent-child bases throughout the country, leading the domestic children's drama performance market.
Maintain the profit forecast, give a "buy" rating, the company continues to expand more parks through investment, mergers and acquisitions and brand operation, so as to consolidate the company's leading advantage and scale advantage in the field of preschool education. at the same time, by strengthening the supervision of the park and providing more types of products and services to continuously cut into the park management, improve the guest unit price of preschool education operation and management services. In the future, the company may further promote the merger and integration of direct operation parks, directly increase the number and profit scale of parks, and fully tap the value of education import. Regardless of Xiao Orange Castle for the time being, we estimate that the EPS in 18-20 is 0.45RMB / 0.62RMB / 0.80RMB, and the PE is 18x/13x/10x respectively.
Risk hint: the progress of cooperation with the Ministry of Education is not as expected; the binding of the joining park is weak, and the renewal is not as expected; the acquisition of Xiao Orange Castle is in the planning stage and there is great uncertainty.