The predecessor of Chinese Science Biography is Longmen Book Company founded by Yan Youzhi in 1930. The company always adheres to the purpose of serving scientific and technological innovation, spreading and popularizing scientific knowledge, and serving scientists and readers. Relying on the brand advantages of the Chinese Academy of Sciences and "scientists' Publishing House", fully tap excellent publishing resources at home and abroad. China Science and Technology Publishing Media Co., Ltd. holds a 73.66% stake in China Science and Technology, which is the actual controller of the company. The company has a number of national key publications such as "China Science" and "Science World", as well as subsidiaries such as Beijing Science Journal, China Science Digital Publishing Media, Beijing Longteng Bafang Culture Co., Ltd., Science Press Tokyo Co., Ltd.

Science and technology book publishing plays an important role in traditional book publishing. In line with the vigorous development of economy, science, education and cultural undertakings, the book publishing industry, including science and technology book publishing, has maintained a good growth trend in recent years. From 2007 to 2017, the number of book publishing varieties nationwide increased from 248300 to 512500, with an average annual growth rate of 8.4 percent, according to the General Administration of Press and publication.

The variety of science and technology books published nationwide increased from 71100 to 121600, with an average annual growth rate of 6.1 percent, and the proportion decreased from 28.6 percent to 23.7 percent, and then gradually stabilized. The company has been engaged in professional publishing for many years and has accumulated a number of excellent brands of book publishing, academic journals and popular science periodicals, including Science Publishing House, Longmen Book Company, China Science and Science World. It has accumulated unique competitive advantages in brand, content resources, market identity and other aspects, occupying a leading position in the industry.

In 2018, the company published more than 4300 new books, and so far it has published more than 50,000 kinds of books. The publishing field involves science (S), technology (T), medicine (M), education (E), humanities and social sciences (H). It is a comprehensive science and technology publishing organization with the most complete distribution of disciplines and the largest publishing scale in China. Integrated development has become a major trend in the innovation and transformation of the publishing industry, and the transformation from professional publishing to knowledge services is the trend of industrial upgrading. The company has made efforts mainly from three aspects: professional discipline knowledge base, digital education cloud services and medical and health big data. In addition, as the "national team" of Chinese science and technology publishing "going out", the company actively implements the internationalization strategy, and the number of copyright of excellent science and technology books exported abroad every year has been in the forefront of the country's publishing units. In 2018, the company exported 164 kinds of book rights, up 5.8% from the same period last year, and exported 19 periodicals.

Investment suggestion: relying on the Chinese Academy of Sciences, the company has accumulated rich content resources and strong ability to obtain resources, and has formed a unique advantage in the core content resources of science and technology publishing. according to the development trend of the industry, we actively explore the layout of new business of digital publishing and knowledge services. we expect the company's net profit from 2019 to 2021 to be 483 million yuan, 536 million yuan and 619 million yuan respectively. Corresponding to EPS0.61 yuan, 0.68 yuan and 0.78 yuan respectively, with reference to comparable companies in the industry, the company is given a 20x valuation in 2019 and a "holding-A" rating corresponding to the target price of 12.2 yuan in 2019.

Risk hint: the development of digital publishing business is not as expected, the competition among overseas science and technology publishers is fierce, the risk of book piracy and infringement, and the risk of expiration and change of preferential tax policies.