The net profit of Q3 increased by about 11.34%, maintaining the "buy" rating.
The company released three quarterly reports: 23 years Q1-Q3 achieved revenue of 9.207 billion yuan (yoy+5.93%), return to the mother net profit of 1.236 billion yuan (yoy+15.38%), deducted non-net profit of 1.194 billion yuan (yoy+5.11%). Among them, Q3 realized revenue of 2.437 billion yuan (yoy+0.02%,qoq-40.65%), net profit of 265 million yuan (yoy+11.34%), and non-return net profit of 263 million yuan (yoy+1.76%). We maintain the 23-25 company's parent net profit of 16.34 billion yuan, 17.91 billion yuan, 1.934 billion yuan, 24-year comparable company Wind unanimously expected an average PE of 10X, considering the company's leading position (obvious advantages in the educational category, leading the industry in digital transformation), we give the company 14X for 24 years, corresponding to the target price of 14 yuan (original value: 14.56 yuan), maintain the "buy" rating.
The main business of publishing and distribution maintains steady growth
The company's main publishing and distribution business maintained steady growth, Q1-Q3 revenue increased by 5.93%, of which Q3 revenue increased by 0.02%. In terms of distribution business, the company has obvious advantages in educational categories, with continuous growth in quality reading, vocational education and theme publishing. In terms of publishing business, according to the company's disclosed operating data, the sales of 23Q1-Q3 's general book publishing business were 1.348 billion yuan, an increase of 15.07%, of which Q3 was 428 million yuan, a decrease of 7.64%, and an increase of 3.90%. Of this total, Q3 income was 146 million yuan, down 17.07%. The decline in Q3 is mainly due to the change in the confirmation rhythm of some reading products.
Due to subject adjustment, 23Q1-Q3 gross profit margin decreased slightly; during the period expense rate slightly reduced 23Q1-Q3 gross profit margin by 42.1%, year-on-year-2.39pct, mainly due to the adjustment of transportation costs related to compliance obligations to operating costs in accordance with the new revenue criteria. The sales / management / R & D / financial expense rate is 14.9%, 12.4%, 0.7%, 0.9%, respectively, compared with the same period last year. The decline in the sales expense rate is due to the adjustment of transportation expenses related to compliance to operating costs. The rate of expenses during the period is 27.1%, compared with the same period last year-1.48pct.
Actively improve the business matrix and steadily advance the digital industrial cluster
The company actively integrates its digital education resources, and Tianyin digital education products serve more than 10, 000 schools; Shell Network is actively transformed and upgraded, focusing on building a Hunan education wisdom cloud platform; Central South Xunzhi focuses on education quality monitoring and examination services, and the number of registered users of 23H1 mobile applications exceeds 5.6 million. The digital industrial cluster planned by the company has progressed steadily, and most of the towers in the north and south of the Malanshan Park project have been capped during the reporting period. After the completion of the project, it is proposed to gather new business type, the company's new industries such as short video, financial media, digital publishing and digital education, to help the company's digital transformation.
Risk hint: the publishing and distribution business is not as expected, and the development of digital business is not as expected.