The company has a deep background and has obvious competitive advantages in its main business. North United Publishing Media Group Co., Ltd. is a large comprehensive publishing media company controlled by Liaoning Publishing Group Co., Ltd., one of the most famous publishing groups in China. On December 21, 2007, the company became the first publishing company in China to achieve the overall listing of editing business and operating business. At present, the company's main business includes the publication and distribution of general books and teaching materials, and its Northern Book City is the largest and most comprehensive book city in Northeast China.
The company responds positively to the omni-directional layout. Publishing Media completed its leadership transition in August 2015, and the new management actively promoted the six major industrial layouts of "large publishing, large distribution, big education, pan-entertainment + cultural finance, and cultural trade", with the development goal of "second entrepreneurship". Comprehensively promote the integration of resources, strengthen the main business, mergers and acquisitions, cross-border expansion, achieve the strategic transformation of the company's overall development, and strive to build a modern and international large-scale cultural enterprise group, and quickly enter the first square of domestic publishing.
Content production ability is the core competitiveness of the company. The company is the general agent of the people's Education Publishing House in Liaoning Province, with Liao Hai Society, Liao Mei Society, Wan Volume Publishing, Liao Science Society, Electronic Society, Spring Wind Society, Liao Shao Society, Audio and Video Society and so on jointly engaged in the publishing business of teaching materials and general books and electronic audio-visual products. The company has obvious advantages in content production, and a variety of books have been obtained. its "Top students" and "good classroom practice" are famous brand teaching materials commonly used in local primary and secondary schools.
Online education, offline experience, the company's new business blossoms. Liao Hai Society and Oriental Yunma Network Technology launched the "Liaohai Micro classroom" in 2015, which took the first step in the company's layout of online K12 education.
At the same time, "Magic Empire of Big ear Baby" and "Elephant Life Pavilion" have opened the door of offline derivation of the company's high-quality content. It is expected that in the future, the company will be based on high-quality educational content, actively lay out the field of online K12 education and offline preschool education, and become a comprehensive education group across offline online and multi-age groups.
Company profit forecast and investment rating. We expect the company's operating income from 2016 to 2018 to be 1.72 billion yuan, 1.98 billion yuan and 2.19 billion yuan respectively, the net profit attributable to the shareholders of the listed company is 145 million yuan, 161 million yuan and 184 million yuan respectively, and the earnings per share are 0.22 yuan and 0.27 yuan respectively, corresponding to 45.6,39.7 and 37.2 times of PE respectively. In view of the steady growth of the company's main business and the future development potential of the large education business, we give the company a price-to-earnings ratio of 70 times, a six-month target price of 15.4 yuan and a "highly recommended" rating.