半年度营收端基本持平，Q2 收入同比增长4%2024H1，公司实现营业收入40.25 亿元，同比-0.83%，实现归母净利润2.99亿元，同比-27.22%；扣非归母净利润3.30 亿元，同比-5.95%，年内教辅、数字教材、木浆业务收入同比增加，一般图书、文体用品业务收入同比减少。Incidents:
The company released its 2024 mid-year report.
Comment:
The semi-annual revenue side remained flat. Q2 revenue increased 4% year on year. The company achieved operating income of 4.025 billion yuan, -0.83% year over year, achieving net profit of 0.299 billion yuan, or -27.22% year on year; net profit after deducting non-return to mother 0.33 billion yuan, -5.95% year over year. Revenue from teaching aids, digital textbooks, and wood pulp business increased year on year, and general books and sports supplies business revenue decreased year on year. 2024H1
In the first half of the year, the company's sales/management/R&D expenses rates were 10.34%/10.97%/0.10%, respectively. The year-on-year change of -0.21pct/+0.38pct/ remained flat. Management expenses increased slightly due to increases in labor costs, depreciation of user rights assets, travel expenses and conference expenses. 2024Q2 achieved operating income of 1.937 billion yuan, +3.93% YoY, -7.25% month-on-month; net profit to mother 0.147 billion yuan, -18.62% YoY, -3.57%.
The textbook teaching aid business is developing steadily, and the service capacity of the digital education platform continues to improve 24H1. The company's distribution, publishing, logistics trade and printing business achieved revenue of 31.93, 13.91, 4.87 and 260 million yuan, respectively, -4.37%, -1.69%, +27.72%, and -3.84%. The gross margins of the business were 23.6%, 30.9%, 9.03% and 14.62%, respectively. The various business segments developed evenly, and the efficiency increased steadily. The company's general book business has exploded frequently. Li Juan's “My Altay” has sold over one million copies, with a maximum daily sales volume of 0.05 million copies. Education publishing built a new business format and successfully completed the unified supply of textbooks for primary and secondary schools in the spring of '24. The total supply of textbooks exceeded 0.223 billion, with a total supply of 1.637 billion foreign textbooks; all textbooks were submitted for review; there was a steady increase in the promotion of textbooks and teaching aids. The distribution code for teaching aids in the spring of '24 was 0.645 billion yuan, +4% over the same period. Continuously improve the service capabilities of the Guangdong Education Xiangyun Digital Textbook Platform, covering 99.3% of schools, 93.5% of teachers and 79.7% of students in the province, and promoting the development of digital education resources in an orderly manner. The influence of all-media communication continues to increase. The total number of reprinted links on the entire Times Weekly network reached 0.132 million, the total number of reprinted links on the entire Times Finance network reached 0.113 million, and the number of users of the new Weekly app was 1.6 million. The number of readers of all topics launched by its media reached more than one million.
Investment advice and profit forecasting
As the leading state-owned publishing enterprise in Guangdong Province, the textbook teaching aid business is operating steadily, the after-school service business continues to advance, and various fields such as digital education are expected to contribute more. The company is expected to achieve net profit of 0.957/1.029/1.1 billion yuan in 2024-2026, corresponding EPS of 1.07/1.15/1.23 yuan and PE of 12/11/10x, maintaining a “buy” rating.
Risk warning
Industry competition increases risk; risk of policy changes; risk of tax policy changes, etc.