The strength of the company ranks first in the vice-provincial city publishing house, and its marketization is strong.
The company is the first state-owned joint-stock cultural enterprise in Qingdao, which landed in the capital market through backdoor Qingdao alkali industry in 2015. The overall economic scale of the company ranks fifth in the national local publishing house and 1st in the vice-provincial city publishing house. The company is highly market-oriented, and the main source of income is the publication and distribution of general books, rather than teaching materials. In the general book business, the company spans literature and art, children's and social science works, and has signed a large number of writers and works, especially the introduction of Japanese writer Junichi Watanabe to open the Chinese market.
The company's performance growth rate is higher than the industry average, plus industrial investment mergers and acquisitions, Himalayan investment returns are considerable.
In 2018, the company achieved operating income of 2.17 billion yuan, an increase of 10.19% over the same period last year; the net profit belonging to the shareholders of the parent company was 348 million yuan, up 5.66% from the same period last year, excluding the loss factors such as depreciation of new fixed assets added by Qingdao Media Development Co., Ltd. the net profit of the company belonging to the shareholders of the parent company increased by 16.65%. In recent years, the company's revenue and profit growth are higher than the industry average, reflecting its high operating efficiency and strong competitiveness. At the same time, the company continues to carry out industrial new business type investment mergers and acquisitions, the most representative is the unicorn enterprise Himalayan investment. The company has made two investments in the Himalayas, and in view of the rapid development of the Himalayas and is expected to be listed on the market, the company will make a considerable return on this investment and further accelerate the diversified development of the company's all-media industry chain.
The company will explore employee stock ownership, continue to strengthen the layout of new business, and cultivate new profit growth points.
In 2019, the company will actively explore equity incentives, employee stock ownership and other incentive methods to fully mobilize the enthusiasm and creativity of employees. The company will start with the in-depth development and operation of high-quality copyright assets, promote the transformation and upgrading of the traditional main business, and continue to build and improve the core competitiveness. At the same time, by operating and participating in industrial funds, the company will explore business expansion through joint ventures, mergers and acquisitions, and select the top and most vital first-class enterprises in various industries as partners to create new market players with strong development potential and explosive growth as soon as possible, and cultivate the company's new economic growth.
Be optimistic about the company's "content +" new business type and industrial investment, and give a "recommended" rating.
We predict that the revenue of City Media from 2019 to 2021 will be 2.441 billion yuan, 2.701 billion yuan and 2.953 billion yuan respectively, an increase of 12.46%, 10.67% and 9.33% over the same period last year, and the net profit of returning home will be 374 million yuan, 418 million yuan and 468 million yuan respectively, an increase of 7.57%, 11.72% and 12.01% over the same period last year. The corresponding EPS from 2019 to 2021 is 0.53,0.60,0.67 yuan respectively. For the first time, coverage gives a "recommended" rating.
Risk tips: the risk of rising costs caused by paper prices; the intensification of market competition; policy risks.