Main points of investment
Event: the company released three quarterly reports, with revenue of 2.176 billion yuan from January to September, an increase of 37.24%, a net profit of 130 million yuan, an increase of 158.90%, a net profit of 127 million yuan after deducting non-profit, an increase of 202.18%, and a basic earnings per share of 0.3286 yuan per share. Among them, Q3 achieved revenue of 1.003 billion yuan in a single quarter, an increase of 41.05%, a net profit of 79.523 million yuan, an increase of 123.30%, and a net profit of 81.7992 million yuan after deducting non-profit, an increase of 150.13%.
Comments:
And the effect has led to high performance growth in the first three quarters. The Martian era merged in August 2017, and Kai Meng Vision merged in July this year. As a result, the company's performance in the first three quarters increased by 158.70% compared with the same period last year, with a net profit of 130 million yuan. The increase is in the upper middle of the 140% Mel range previously forecast.
The gross profit margin increased significantly, and the expense rate increased slightly during the period. In the first three quarters, the company's comprehensive gross profit margin reached 24.34% (+ 9.4pct), a significant increase. During the period, the expense rate was 13.96% (+ 2.21pct), of which the sales expense rate was 7.19% (+ 3.04pct), the management expense rate was 6.51% (+ 0.46pct), and the financial expense rate was 0.26% (- 1.29pct).
The second half of the year is the traditional peak season on Mars, and the follow-up efforts are worth looking forward to. At present, 15 offline teaching centers have been set up in 13 cities, including Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou. The second half of the year is generally its peak enrollment season. According to the 17-year performance distribution, August-December income accounts for 46% of the whole year, and net profit accounts for 66% of the whole year. The 18-year Mars performance commitment is 108 million yuan. Judging from the performance in the first three quarters, it is expected to be completed smoothly.
The visual synergistic effect between the Martian era and the demon is obvious. The Martian era successfully acquired an 80% stake in Kaishi Vision at the end of June. Kaidemon Vision focuses on the high-end special effects production of the head film market, and the Martian era focuses on film and television post-training. Kaishi can provide practical training opportunities for Martian students, and Mars can also help Kaishi expand its production capacity, and the synergy between the two is expected to show gradually.
We plan to cooperate in running schools and continue to expand the layout of the education industry chain. In October, the company signed a cooperation agreement with Guangxi Information Vocational and Technical College, planning to jointly set up a digital art college with a cooperation period of 20 years and an enrollment target of 3000 people, which is expected to further deepen the layout of the company's education industry chain. at the same time to create new profit growth points.
Annual performance guidelines: the company expects to return to the mother of the net profit of 1.92-215 million yuan, an increase of 170% 190%.
Investment advice: the combination of Mars and demons has led to high performance growth in the first three quarters, and the second half of the year is the peak enrollment season for Mars, which is expected to continue to work. In addition, the synergy between Mars and demons is also expected to be gradually reflected. Maintain the profit forecast of 277 million yuan per diluted share and 0.60 yuan per diluted share, corresponding to the valuation of 16x/13x/11x, the current market capitalization is 3 billion yuan, and the "buy" rating is maintained.
Risk hint: Mars era product line full rate increase is not up to expectations, capacity expansion is not up to expectations, tuition fee increases are not up to expectations.