Events:
The company announced its 2018 annual report, with a revenue of 527 million and a net profit of 54.51 million, which was 12.3% and 33.02% respectively over the same period last year, with earnings per share of 0.21 yuan. Distribution plan: cash dividend of 0.35 yuan (including tax) for every 10 shares.
Comments:
The accumulation of brand leads to the steady growth of piano sales. With the increase and improvement of the company's brand series and the improvement of brand market awareness, the company sold 38197 pianos (upright + grand pianos) in 2018, an increase of 8.7% over the same period last year, and the average price benefited from structural adjustment increased by about 4% to 12300 per unit. Piano sales revenue increased by 13.52% over the same period last year, and the gross profit margin increased by 1.49% despite the rise in raw materials, and the bargaining power gradually improved.
The new product "631" smart piano classroom and smart piano I piano provide fun for music learning. The state does not attach importance to the improvement of quality education, and Jiangsu has decided to include music and art in the senior high school entrance examination in 2020. The company continues to invest in research and development. In 2018, the company has a total of 9 new product projects, 11 new patent applications and 9 authorized patents. The company is actively promoting "631" intelligent piano classroom and intelligent piano I piano, which are equipped with intelligent hardware, mute system and special APP to make the intelligent mode of piano distance teaching and self-study to a higher level.
The company's art education business is advancing steadily.
1) the company officially launched the Smart Piano classroom in 2017, which combines the APP course of Walt Disney Company Animation Smart Piano, the teaching method of Vienna University of Music and Performing Arts, and Helen Smart Piano as teaching aids to enlighten children's way to learn 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 Vienna EMP Music Enlightenment Project, following the European idea of music enlightenment education, began to be piloted in Ningbo in 17 years.
Maintain the "highly recommended-A" rating. After years of influence accumulation, the piano sales price has risen steadily; at the same time, the research and development of "631" intelligent piano classroom and intelligent piano I piano products continue to improve, 19 years of new business is expected to join the development. From 2019 to 2021, the EPS were 0.27,0.32 and 0.38 yuan respectively, compared with the same period last year: 27%, 19% and 17% respectively, maintaining the "highly recommended-A" rating.
Risk hint: the progress of art education and training is lower than expected.