The new classic released the semi-annual report of 2023: in the first half of 2023, the company's revenue was 440 million yuan (down 1.37% from the same period last year) and operating profit was 121 million yuan (up 5.36% from the same period last year). The return to the mother and deduction non-profit were 88 million yuan and 76 million yuan (up 7.35% and 1.43%, respectively). The gross profit margin and net profit margin were 49.75% and 20.46%, respectively. In a single quarter, the company's revenue in the second quarter of 2023 was 235 million yuan (down 1.8% from a year earlier, up 14.69% from a month earlier), and its return profit in the second quarter was 43 million yuan (up 9.2% from a year earlier, down 3.9% from a month earlier).
Main points of investment
In the first half of 2023, 618 had a slight impact on the company's main business, but revenue in the second quarter increased compared with the previous quarter, but the homing profit decreased slightly, waiting for improvement in the second half of the year.
In the first half of 2023, the company's main book planning and distribution business income was 370 million yuan (down 5.6% from the same period last year), and the gross profit margin was 49.61%, down 0.2% from the same period last year. The recovery of book market demand in the first half of the year was less than expected, but the company actively adjusted the pace of new product listing to cope with industry changes. Under the rapid changes in children's book sales channels and marketing methods, the company took the initiative to slow down the pace of new book listing. Further integrate the editors, marketing and marketing personnel, strengthen the connection between the product side and the sales side, and rebuild the market competitive advantage.
In a single quarter, the company's revenue in the second quarter of 2023 was 235 million yuan (1.8% less than the same period last year, up 14.69% from a month earlier). The year-on-year decline was slightly related to June e-commerce festival sales, but revenue picked up in a single quarter compared with the previous quarter. The homing profit in the second quarter was 43 million yuan (up 9.2% from the same period last year, down 3.9% from the previous year). The increase in homing profit compared with the same period last year was due to cost control and optimization of management expenses, while the decline in homing profit was due to a 26.7% increase in costs and a double increase in sales and management expenses. From an industry point of view, China's book retail market fell by 2.41% in the first half of 2023 compared with the same period last year, and the company's main business performance is similar to that of the industry; with the successive launch of new products and additional measures such as children's book marketing in the second half of 2023, it is expected to help the main business improve.
Self-owned IP performed well in the first half of 2023. 2023 continued to promote the efficiency of overseas business.
In the first half of 2023, the company covers the omni-channel marketing and sales system, promoting the co-frequency resonance of marketing sales and improving the sales conversion rate. In the first half of 2023, the company persisted in taking copyright resources as the core and high-quality content as the driving force to continuously optimize the topic selection structure, promote the diversified dissemination and transformation of content, and enhance the ability of fine operation. In the first half of the year, the development of our own IP such as bibi Zoo IP made steady progress, with the launch of "bibi Zoo has been waiting for you for a long time" with a good sales ranking (bibi Zoo derivative book "can't help but want to bother you" and "waiting for you for a long time" has been licensed in Japanese, traditional Chinese and Vietnamese). On the overseas side, in the first half of 2023, the company's overseas business analyzed and combed the market performance of various brands, further optimized the topic selection structure, and promoted integration and efficiency. Overseas business income in the first half of 2023 was 53 million yuan (an increase of 44.9% over the same period last year). Excluding depreciation and amortization expenses arising from the acquisition of copyright assets, the profit loss is 11.08 million yuan, which is 19% smaller than that in the same period (follow-up losses are expected to continue to narrow) Through the development of overseas business, the company is expected to further enrich the copyright content library, and on this basis to build copyright operation capacity to help high-quality content release greater value.
Profit forecast
Maintain a "buy" investment rating. It is predicted that the revenue of the company from 2023 to 2025 is 10.2\ 11.8\ 1.44 billion yuan, the return profit is 1.66\ 2.04\ 254 million yuan, the EPS is 1.02\ 1.26\ 1.56 yuan respectively, and the current stock price corresponding to PE is 19\ 15.5\ 12.4 times. Launch of "best-selling and long-selling" books (such as "ordinary World", "Little Doudou by the window", "hundred years of Solitude", "worry Store", "you should fly like a Bird to your Mountain", "Life Sea", "Love over the City", "1Q84", etc., and Wang Shuo's "initial Bamboo Book", Higuo Higuo's "White Bird and bat", Yu Hua's "Seventh Day", etc.), with high-quality copyright resources and best-selling books reserve, own copyright-related IP image upgrade Overseas continues to promote integration and efficiency improvement, and maintain the "buy" investment rating.
Risk hint
The risk of new business exploration is less than expected, the risk of topic selection, the risk of brain drain, the risk of less than expected intellectual property protection, the risk of tax policy change, the risk of overseas business and new business development falling short of expectations, and the risk of macroeconomic fluctuations.