Events:
The company released three quarterly reports for 20 years. During the reporting period, the company realized total operating income of 314 million yuan and total profit of 82 million yuan; realized deduction of non-net profit of 57.6947 million yuan, an increase of 6.21% over the same period last year; of which Q3 realized revenue of 118 million yuan and net profit of 26.72 million yuan.
Main points of investment:
The company's business is steadily recovering, and M & A projects continue to land. Overall, the company's business is in steady recovery. From a quarterly point of view, Q1-Q3 achieved revenue of 0.98,0.99 and 118 million yuan and net profit of 1101.49 yuan, 2262.9 yuan and 26.7243 million yuan respectively in the past 20 years. At the same time, the net cash flow of the company's operating activities is-0.43,0.05and 70 million yuan respectively, and the cash flow is also in the process of continuous improvement. In a single quarter compared with the same period last year, the company's total revenue in the second and third quarters of 2000 increased by 4.37% and 7.49% respectively, and its net profit increased by 80.05% and 20.51% respectively compared with the same period last year, indicating the impact of the epidemic on the company's operation and its basic elimination. The trend of steady recovery of the company's business is very obvious.
The new product of mobile games has excellent performance and is expected to support the business. According to the industry operating data in the first three quarters, the company's new mobile game "Seven Heroes vying for Supremacy H5" developed around the classic IP has been ranked third in the company's game products (a total of 21.44 million) just after it was launched in February. We expect this work to become one of the important supporting points of the company's game business this year, so that the profit level of the game business in the past 20 years will be further improved.
In addition, during the reporting period, the company continued to strengthen the education industry to further enhance the overall strength of the education business. On the evening of October 30, the company announced that the board of directors agreed to acquire a 60% stake in Sichuan Shengxue Education. The student education team has been deeply engaged in the educational information industry for 16 years since 2004, mainly through its self-developed products "Shengxue School" and "knowing my classroom". To provide big data solution services, educational information software development and sales, and educational information software and hardware integration services to education authorities, schools, teachers and students. Key participation in the construction of Sichuan Education big data Center, Mianyang Education big data platform and other projects. The company's acquisition of further education is an important supplement to the existing education sector business. Compared with the solid and stable offline teaching business of the company's existing Shude Borey Experimental School, the advantages in the construction and operation of the online teaching system and data platform for further education are very obvious, which makes up the original deficiency of the company's education business. to form a joint development model of offline and online education business.
Investment rating and profit forecast
We believe that the company's current business has basically returned to the normal operating level, the landing of mergers and acquisitions of education business will gradually strengthen the company's development potential and growth resilience in the education sector, and the overall transformation trend of the company has initially emerged. To sum up, we continue to give the company an investment rating of "overweight". It is estimated that the company's EPS will be 0.07,0.07 and 0.08 yuan per share respectively from 2020 to 2022. Investors are advised to continue to pay attention.
Risk hint
The company's business development is not up to expectations, major changes have taken place in the business, the advertising and game industries remain in the doldrums, the bad debt rate of small loan business has increased significantly, and the late external mergers and acquisitions and project landing are uncertain.