Events:
2019H1 achieved revenue of 193 million yuan, down 41.22% from the same period last year, and realized net profit of 37.7849 million yuan, an increase of 111.17% over the same period last year, and earnings per share of 0.03 yuan.
Main points of investment:
In the first half of 19, the business structure was comprehensively optimized, and the performance of education and small loan business
The obvious improvement in the company's performance during the reporting period was mainly caused by the continuous optimization of the stock business, in which the education, small loan and building leasing businesses were operating steadily, the loss of the game section was greatly reduced, and the overall operating condition continued to improve.
In terms of educational business, Chengdu Shu Debo Rui School has further improved the quality of education and teaching and the level of operation and management, and the undergraduate admission rate and heavy undergraduate admission rate of the 19th College entrance examination have reached new highs; in addition, the company has further explored the multi-arts education and training market, which has been involved in a variety of quality courses such as culture, art, physical fitness and so on. During the reporting period, Borey's education business achieved an income of 62 million yuan, a net profit of 23.9455 million yuan, and a net profit increase of 8.93% over the same period last year. We believe that the company's comprehensive competitive advantage in education business is outstanding and is expected to maintain sustained and steady growth.
In terms of small loan business, in the first half of the year, Bo Rui small loan achieved revenue of 20.9977 million yuan, net profit of 11.3825 million yuan, excellent performance. Boren small loan this year aims to improve the efficiency of the use of stock funds, while continuing to press for the collection of overdue loans as one of the focus, improve the overall risk control ability of the business, so that the operating performance of the small loan business is better than expected.
In terms of game business, the company's game business achieved revenue of 48.5928 million yuan and net profit of-2.7671 million yuan in the first half of the year, reducing losses by 34.7077 million yuan compared with the same period last year. During the reporting period, roaming Valley continued to make efforts in the cost control of new games and the continuity of old products; DreamWorks focused on promoting the sea strategy of light mobile games, and the Vietnamese version of mobile game "Hot Blood Chivalry" has been successfully launched in Vietnam. At the same time, the domestic version also strives to be launched as soon as possible.
In terms of leasing business, the company is also actively carrying out optimization and adjustment, promoting the gradual landing of high-end commercial projects such as Starbucks Corp and Jiacheng Tourism, and enhancing the supporting facilities and popularity of buildings, contributing 3.3547 million yuan in net profit during the reporting period. The company's outdoor advertising business strengthens the carding, integration and optimization of the stock resources, but affected by a variety of factors, the original media sites are vacant to a certain extent in the first half of this year, and there is still a certain degree of operating pressure. During the reporting period, the income was 39.2522 million yuan and the net profit was 5.0757 million yuan.
Investment rating and profit forecast
We believe that the action force of the company's reform and development is strong, the goal is clear, the results of business optimization are beginning to appear gradually, and there are obvious signs of continuous improvement in the fundamentals. As the cultural industry platform and financing platform of Chengdu Media Group, which is the sequence of state-owned assets and cultural propaganda in Chengdu, the future focus of the company is to promote the exploration and promotion of new projects around the three established strategic development directions. as well as the internal continuous promotion to deepen the reform of the management system and mechanism, and to establish a scientific and perfect incentive mechanism to stimulate the entrepreneurial ability of all the staff of the company. At the same time, the company has sufficient paper capital and low debt ratio, and after the divestiture of relevant assets and the calculation of goodwill, the operating risk accumulated by the company for many years can be released. To sum up, we continue to give the company a "neutral" investment rating, and the company's EPS is expected to be 0.04,0.05,0.05 yuan per share in 2019-2021, respectively. Investors are advised to keep paying attention.
Risk hint
Regulatory policy risks, the company's business development is not up to expectations, major business changes have taken place, the advertising and game industries remain in the doldrums, and the bad debt rate of small loan business has increased significantly.