Under the influence of the suspension of classes due to the epidemic, the non-performance in the first three quarters fell by 75% compared with the same period last year. In the first three quarters, the company's revenue was 266 million yuan /-45%, and the return-to-mother performance was 102 million yuan / + 22%, which was in line with expectations. The deduction for non-performance was 2111 yuan /-75%. Q3 single quarter, revenue 139 million yuan /-32%, home net profit 125 million yuan / + 154%, deducting non-performance 43.1 million yuan, down 11.70% compared with the same period last year. Q3 divested 100% equity of third base technology resulting in 84 million non-profit.
The early education business has recovered well since the resumption of classes, and the overseas study training is still under pressure under the influence of the overseas epidemic. The company has completed the divestiture of the manufacturing third base technology, and its main business has been transformed into a pure education business.
The revenue of Tianjin Meijem Q3, a subsidiary of early Education, has recovered to 90% in the same period last year, which is significantly better than that of Q2 (about 40%). It is expected that Q3 will achieve a performance of about 40 million, and the overall recovery of early education business after the epidemic is relatively good. Kai de Education's main business is English training for studying abroad, and the company is actively transforming extracurricular English training under the spread of the overseas epidemic. Q3 is expected to be even in a single quarter (2020H1 performance is 3.99 million yuan). In the first three quarters, the company's gross profit margin was 51.92%, a year-on-year decline of 15.65pct, the impact of the first half of the epidemic shutdown, net profit of 43.37%, year-on-year increase of 17.15pct, mainly due to the divestiture of manufacturing subsidiaries without disturbance. The expense rate during the period is the same as the increase in 13.88pct, in which the management / sales / financial rates are increased by 10.13/2.68/1.40pct respectively, which is expected to be related to the relative rigidity of employee compensation and rental costs, and the R & D rate is reduced by 0.33pct.
Stripping the manufacturing business to focus on the early education track, the leader in the post-epidemic era led the concentration enhancement of the traditional business subsidiary divestiture and the helm of Mei Jim founder Liu Junjun, the strategic focus of listed companies focused on early education business attitude is relatively clear. Under the impact of COVID-19 's epidemic situation, the whole offline early education industry is at a standstill, and the speed of clearing is accelerated. As the leader of the early education track, relying on the financial advantages of the platform of listed companies, the company is conducive to the integration of idle high-quality property resources and teacher resources in the industry after the epidemic, and is optimistic about the improvement of industry concentration in the post-epidemic period.
Risk tips: stricter policy supervision; slow recovery of store passenger flow; loss of educational management team, etc.
It is suggested that we should pay attention to the recovery of store passenger flow after the epidemic and maintain the "overweight" rating.
Considering that the company's refinancing plan is still in progress, the company's EPS for 20-22 is-0.18pm 0.23shock 0.30 yuan, corresponding to a valuation level of 30max 24x for 21-22. It is recommended to pay attention to the recovery of store passenger flow after the epidemic, the middle line to focus on the company's industry integration opportunities, and to maintain the "overweight" rating.