Performance summary: in the first half of 2020, the company realized operating income of 3.606 billion yuan, down 6.92% from the same period last year; realized net profit of 580 million yuan, up 0.13% from the same period last year; realized net profit of 522 million yuan, down 5.30% from the same period last year; and basic earnings per share of 0.47 yuan, consistent with the previous period.
Due to the impact of the epidemic, the publishing business continues to consolidate the teaching-assisted publishing business. During the epidemic, all aspects of the mass publishing business were greatly affected, with revenue of 235 million yuan, a decrease of 47.43% over the same period last year. The group actively took measures to further consolidate the textbook teaching assistant publishing system. During the reporting period, the revenue of the textbook teaching auxiliary publishing business increased by 16.32% over the same period last year, with a gross profit margin of 42.51%, an increase of 6.21% over the same period last year.
Continue to develop education service business and create an online teaching platform. The revenue of the education service business reached 2.23 billion yuan, an increase of 1.86% over the same period last year. Of this total, the sales revenue of teaching materials and teaching aids was 2.187 billion yuan, an increase of 8.40 percent over the same period last year, and the revenue of educational informatization and equipment business was 33.7462 million yuan, down 80.24 percent from the same period last year.
Create an online service platform for "excellent learning and excellent education" and open up online education services. The platform has covered 5603 schools and served 3.8122 million students.
Strengthen the capacity building of Internet business and consolidate the leading position of book e-commerce. The revenue of Internet sales business reached 710 million yuan, an increase of 2.13% over the same period last year. Mainly benefited from increasing the expansion of network-wide channels, expanding the scale of sales, focusing on "literature" and "children" categories. In the first half of the year, the company maintained its position in the top three of book sales on major platforms such as Tmall and JD.com, and continued to consolidate its dominant position in the national book e-commerce industry.
In terms of logistics, the intelligent logistics distribution system based on data cloud has been continuously optimized to provide strong support for the group's business development. the total circulation code of publications through its own channels reached 11.725 billion yuan in the first half of the year. Cooperative real estate companies, innovative business models, reduce the cost of opening stores.
Profit forecast and investment advice. We estimate that the EPS of the company from 2020 to 2022 is 0.97,1.06,1.17 yuan respectively, and the corresponding PE is 12 times, 11 times and 10 times respectively. Considering that the gross profit margin of the company's main distribution business continues to rise, public book publishing, physical store sales and other main business gradually recover, the company has great growth prospects in the future. COVID-19 's epidemic caused some pressure on the company's performance, but it did not change our good expectations for the company's long-term and sound development, and maintained its "buy" rating.
Risk hint: the policy of market access or industry regulation is relaxed, aggravating the risk of market competition. The company has management risks caused by the expansion of its scale.