Main points of investment:
The company has performed well in the past 20 years.
In 2020, the company achieved a total operating income of 533 million, an increase of 25.26% over the same period last year; a net profit of 85.6626 million yuan, an increase of 29.7% over the same period last year; and basic earnings per share of 0.08 yuan.
Under the condition of strict control of the epidemic situation, the company's operation maintains a steady growth trend.
In 2020, Bouri Education achieved a revenue of 130.63 million yuan and a net profit of 27.8 million yuan, maintaining a stable operating state. In terms of teaching results, the company's education sector took into account the prevention and control of the epidemic and business development, and the quality of running a school was improved again during the period. The undergraduate admission rate of the college entrance examination reached 98.66%, a new high, and the indicators such as the admission rate of one book and the key point rate of the high school entrance examination ranked in the forefront of the region.
In 2020, Bo Rui small loan achieved revenue of 51.67 million yuan, net profit of 33.31 million yuan, profitability maintained a steady improvement year by year, and won the A-grade evaluation of Sichuan Micro-loan Company. Under the influence of economic tightening and the superposition of the epidemic situation, Boren small loan actively adjusts its business strategy, launches new products such as "special funds for epidemic prevention and control" and "return to work and production loan", earnestly fulfills the social responsibility of state-owned enterprises and continues to borrow loans, helping more than 200 small and micro enterprises throughout the year to improve the influence of the brand.
The overall business situation of the game has improved significantly, with revenue of 107 million yuan in 2020, an increase of 17.89% over the same period last year. At present, the company has a total of 13 games in operation and 4 games in research, among which the classic IP game "seven heroes vying for hegemony H5" has been successfully launched, relieving the pressure of management; DreamWorks has developed the educational game "Poetry Love APP" for carrying forward Chinese traditional culture.
In 2020, the company's building leasing business realized revenue of 45.97 million yuan and net profit of 29.71 million yuan. While doing a good job in epidemic prevention and control, the company took the initiative to dock with expired tenants to ensure that high-quality customers were not lost, with an overall rental rate of 85.2%, 6 new tenants and a lease renewal rate of 90%. At the same time, we will strengthen online marketing and effectively enhance the influence of the building brand through Douyin, Wechat official account and other ways.
Layout new path, continue to promote transformation and development with high-quality projects
In 2020, the company made an in-depth layout and sought innovation in the three major fields of education and training, modern communication and cultural creation, which opened a new path for the next step of development.
In terms of the layout of intelligent education, the company increases the selection and reserve of high-quality education information projects on the basis of the existing offline K12 education. In 2020, the company invested 210 million yuan to acquire 60% equity of Sichuan Shengxue Education Company, a leading enterprise in education informatization in southwest China, quickly cut into the business of intelligent education, promoted the company's transformation to intelligent and information-based education, and extended the chain of Borean's communication and education industry. and formed a high degree of cooperation in the business, enhancing the profitability of the company.
In terms of fashion, cultural and creative layout, the company pays close attention to Chengdu to build a famous city for world events and to build "three cities and three capitals".
The strategic deployment of the city brand revolves around the company's development strategy, focuses on the development direction of the "e-sports +" industry, invests 50 million yuan to participate in the first round of market financing of Bilibili Inc. and e-sports, accounting for 6.02% of the shares, and builds a full strategic cooperation relationship with Bilibili Inc.. Further expand the company's trend cultural and creative business, play a coordination and help for the next step of industrial development. In addition, the company has reached a strategic consensus with the China Digital Library by publicly delisting, each contributing 45.248 million yuan to participate in the Chengdu Literary Exchange project of increasing capital and shares, and plans to gradually introduce high-quality resources such as digital books, periodicals and videos. The company also set up a fund management company with Shanghai Rongzheng Libao and set up a Chengdu Borel Cultural Industry Fund, which invests in cultural consumption, film and television, sports, science and technology, education and other pan-entertainment and new consumption areas. to provide project reserves for the company's future sustainable development.
Investment rating and profit forecast
We believe that the overall upward development trend of the company has been very obvious, the basic business plate is clear and sound, and the main business development is very resilient. The management of the company continues to improve its governance ability and has a strong willingness to further transform and develop the company. To sum up, we continue to give the company an investment rating of "overweight". It is estimated that the company's EPS will be 0.11,0.15 and 0.21 yuan per share respectively from 2021 to 2023. 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.