According to the company's three-quarter report, Q1-Q3 achieved business income of 1.865 billion yuan, + 9.38% compared with the same period last year; realized deduction of non-return net profit of 286 million yuan, year-on-year + 8.06% X Q3 realized business income of 654 million yuan, year-on-year + 6.51%; realized deduction of non-return net profit of 107 million yuan, year-on-year-4.71%.
The seasonal fluctuation of income structure in the third quarter led to a slight decline in gross profit margin. Q3's gross profit margin in 2023 is 25.38%, down from 29.34% in the same period last year. We split the data of the book business segment to get:
The revenue of Q1/Q2/Q3 's book business reached 1.75 yuan, 2.83 billion yuan, respectively, compared with the same period last year, which was + 25.20, 0.41, 10.98%. The gross profit margin was 71.39, 49.90, 58.79%, respectively, + 2.16/-1.89/+1.82pct, respectively. Although the revenue of the company's core main business book business declined in Q3 due to the dual influence of the off-season and the general book retail market did not fully recover, it still achieved a countertrend increase in gross profit margin. The share of Q3's book business revenue fell to 29.9% in 2023 from 35.8% in the same period last year, and we speculate that seasonal fluctuations in the income structure will have a negative impact on the single-quarter gross profit margin.
The main business maintains steady growth and excellent cost control. The company's publication import / book / periodical business as a whole maintained a stable development trend, with Q1-Q3 achieving business income of 1.865 billion yuan, + 9.38% compared with the same period last year; deducting non-return net profit of 286 million yuan, compared with + 8.06% and + 6.51% of the same period last year; and deducting non-return net profit of 107 million yuan,-4.71% of the same period last year. The sales / management / R & D expense rate of Q3 company is 5.01max 7.30max 0.20% respectively, which is-0.32/-0.27/+0.08pct compared with the same period last year, and the cost control is further optimized.
Relying on the Chinese Academy of Sciences, the company has accumulated high-quality academic content resources, and the academic influence of its periodicals continues to improve. The company publishes more than 3000 new books a year, and has published more than 50,000 books in the fields of science, technology, medicine, education, humanities and social sciences. It is a comprehensive science and technology publishing organization with the most complete distribution of disciplines and the largest publishing scale in China. According to the 2022 Journal Citation report (Journal Citation Reports,JCR) published on June 28, 2023, the impact factor of SCI of English journals sponsored and published by the company continues to improve. The latest impact factor of National Science Review, a high-end summary academic journal published by the company, has reached 20.6, ranking fourth among the comprehensive scientific and technological journals in the world. The company's wholly-owned subsidiary "China Science" magazine 11 English journals are all ranked in the Q1 area of international journals in the same field, of which 6 journals are in the top 10%.
Maintain the "highly recommended" investment rating. In view of the company's outstanding professional publishing advantages and the continuous improvement of academic influence under the acceleration of the construction of first-class sci-tech periodicals, it is estimated that the company will achieve a return net profit of 5.25 million yuan in 2023-2025, corresponding to 35.6 times the valuation of 39.6 gamma, and maintain the "highly recommended" investment rating.
Risk hint: the risk brought by the impact of new technology and the risk of intensified competition in the industry.