Event Overview
The company released its annual report for 2010. during the reporting period, the company achieved operating income of 9.008 billion yuan, an increase of 1.87% over the same period last year, mainly due to the growth of income such as teaching books, Internet sales business and three-party logistics business. The net profit was 1.243 billion yuan, an increase of 10.52% over the same period last year, mainly due to the increase in gross profit brought about by the growth in revenue from the educational services business and the increase in income from changes in the fair value of projects held by funds such as Citic mergers and acquisitions. The company plans to pay cash dividends of 3.1 yuan (including tax) to shareholders for every 10 shares, and 3 yuan (including tax) in 2019.
Analysis and judgment:
The income of teaching books continues to grow, and the work of educational informatization and equipment business lags behind as a result of the epidemic.
The company ploughed the high school education service market, expanded the preschool education service market and the secondary vocational education service market, and the sales income increased steadily. The sales income of teaching books for the whole year reached 4.772 billion yuan, an increase of 442 million yuan over the same period last year, an increase of 10.20%. In terms of educational informatization and educational equipment, we seized the market opportunities brought about by the new college entrance examination reform and the educational informatization 2.0 action plan to provide products and services such as subject classrooms, creator space, and smart campuses, with annual sales revenue of 555 million yuan, a year-on-year decrease of 16.99%, mainly due to the lag in project acceptance work caused by the epidemic.
During the reporting period, the company created an online service platform for "excellent learning and excellent education" covering 6094 schools and serving 3.8865 million students. It continued to steadily promote the business of labor and practical education aimed at primary and secondary school students, realizing 14.38 million yuan in orders for the whole year and serving more than 25000 students. We have innovated the business organization of teacher training services and launched online education and training courses for teachers. a total of 250 online and offline training programs have been realized in the whole year, with an order amount of 26.21 million yuan and more than 150000 teacher training person-times.
We will build three-dimensional sales channels, promote the construction of integrated publishing, and the online business continues to grow rapidly.
Affected by the epidemic, the company's general book business achieved revenue of 678 million yuan, down 23.71% from the same period last year. According to the open-book data, the company's mass book market share ranks ninth among 37 publishing media groups in the country, down 2 places from the same period last year, and ranks fifth among local publishing groups, the same as in the same period.
The company will speed up the omni-channel business layout and expand the scene-oriented new channels of social e-commerce. 1) offline channels, through the internal channel sales big data mining, timely adjust the promotion mechanism and marketing strategies to encourage the sale of this edition of books; strengthen offline channel cooperation to achieve the cooperative development of a variety of customized products. 2) in terms of online channels, strengthen the layout of traditional e-commerce and emerging channels, actively expand new models such as community, live broadcast, reading and promotion of people and goods on the basis of stabilizing traditional e-commerce business cooperation, so as to realize the transformation and upgrading of online channels. During the reporting period, the company's income from Internet sales increased steadily, with an operating income of 1.671 billion yuan, of which the income from the main business was 1.626 billion yuan, an increase of 10.79% over the same period last year. It maintained its position in the top three of book sales on major platforms such as Tmall and JD.com, and continued to consolidate its dominant position in the head of book e-commerce throughout the country.
During the reporting period, the company developed new media such as "Panda Kanshu", "Natural Secret Exploration" and "Picture Theory", and expanded Xuan Live broadcast "Love to read IDO" over the weekend. The total number of readers on the all-media service platform was 130 million. Plan the reports of "Reading everyone Series", "Cultural celebrities talking about Reading" and "Editor-in-Chief talking about Book Fair" series, and give full play to the role of Wenxuan Media as the main force in the reading work of the whole people.
Strengthen brand management, physical bookstores continue to transform and upgrade, and the performance has stabilized and rebounded in the second half of the year.
During the reporting period, the company opened Wenxuan BOOKS Merchants Store and Kids Winshare Wenxuan parent-Child Bookstore Renhe Metro Store, relying on physical stores to convert store passenger flow through community, live broadcast, Mini Program and other new ways; to establish a distribution system and implement full-staff marketing to achieve sales of nearly 10 million yards. In 2020, affected by the epidemic, the company's book retail business achieved sales revenue of 591 million yuan, down 14.55% from the same period last year, but began to stabilize and pick up in the second half of 20 years. 20H2 achieved revenue of 435 million, an increase of 9.3% over the same period last year.
Strengthen the capacity building of logistics services and expand the business of third-party logistics.
During the reporting period, the company continued to strengthen logistics operation and management, improve the quality and efficiency of logistics services, optimize the intelligent logistics warehousing and distribution system and the "three bases and multi-fulcrum" logistics service system around Chengdu, Tianjin and Wuxi. The total circulation code of publications through its own channels reached 26.1 billion yuan, an increase of 8.3% over the same period last year. In addition, the company steadily expanded its three-party logistics business, with annual revenue of 256 million yuan, an increase of 5.96% over the same period last year.
Investment suggestion
With reference to the company's 2021 business plan, we adjusted our profit forecast. It is expected that the company will achieve revenue of 9.874 billion yuan, 11.077 billion yuan and 12.407 billion yuan respectively from 2021 to 2023, an increase of 9.6%, 12.2% and 12% respectively over the same period last year. The last forecast for 2020-2022 will achieve revenue of 9.065 billion yuan, 10.114 billion yuan and 113.65 yuan respectively, up 2.52%, 11.57% and 12.37% respectively It is estimated that the company's net profit in 2021-2023 is 1.491 billion yuan, 1.734 billion yuan and 1.993 billion yuan respectively, an increase of 18%, 16.4% and 14.9% over the same period last year. The last forecast for 2020-2022 net profit was 1.147 billion yuan, 1.565 billion yuan and 1.973 billion yuan respectively, up 0.7%, 36.4% and 26.1% respectively. The corresponding EPS in 2021-2023 was 1.21,1.41 and 1.62 yuan respectively. Consider the company as the assistant leader of teaching materials in Sichuan Province, to maintain the "increase" rating.
Risk hint
The discount rate of the industry further increases the risk, the sales of new works fall short of the expected risk, and the growth rate of the book industry continues to slow down.
