Zhongguo Education (002607): Continuation of High Income Growth
Performance summary: The company achieved revenue 61 in the first three quarters of 2019.
60,000 yuan, an increase of 47 in ten years.
7%; realized net profit attributable to mother 9.
60,000 yuan, an increase of 77 in ten years.
2%, deducting non-net profit 8.
90,000 yuan, an increase of 74 in ten years.
Q3 achieved 1% of 25% of revenue.
20,000 yuan, an increase of 46 in ten years.
1%, net profit attributable to mothers4.
70,000 yuan, an increase of 41 in ten years.
6%, deducting non-net profit 4.
20,000 yuan, an increase of 33 in ten years.
The market rebounded to seize the opportunity and profitability improved.
1) The heaters in the public institution sequence and other sequences have improved. Under the trend of cycle conversion, the company timely optimizes management to capture the opportunity for recovery, and actively accelerates market share concentration to promote continued rapid growth in revenue; multi-category collaboration to improve effectiveness andOnline training business and other performance support improved profitability, the first three quarters of 2019 gross profit margin57.
6% (+ 1% year-on-year.
1pp), significantly improved operating management efficiency + platform-based operating capabilities continued to improve, sales / management expense ratios replaced 17.
6% (-1% year-on-year.
5pp) / 13.
5% (-2% YoY).
8pp), and the overall net margin is optimized to 15.
6% (+2 year-on-year.
6pp; Looking at the single quarter of 2019Q3, the gross profit margin is 57.
7% (0% YoY.
4pp), sales expense ratio 16.
1% (+ 1% year-on-year.
0pp), the management expense ratio is 13% (-3% compared with the same period last year).
7pp), net interest rate 18.
5% (0% YoY.
6pp), basically stable.
R & D expansion continues to increase, product + channel expansion can be expected.
The first three quarters of 2019 / Q3 single quarter R & D expense ratios are 8 respectively.
3% (+2 year-on-year.
6pp) / 8.
2% (0% YoY.
6pp), the R & D expense rate remains relatively high, and continuous research supports the continuous and iterative update of the product; channel sinking continues, and the increased market participation rate of the sinking market contributes to the increase in demand.
The number of enrolled students in the National Examination has improved significantly, and the participation rate in a certain 淡水桑拿网 range can stimulate students’ participation in training.
In 2020, the national examination enrollment will be 24,128, a significant increase of 66% in ten years, and the number of registered and final reviewers will be 143.
70,000 people, an increase of 4 in ten years.
2%, the ratio of the number of examiners to the recruitment plan is 60: 1, and the competition ratio is back to the normal level in previous years.
Funds received in advance for the third quarter of 201939.
2 trillion, an increase of 104 earlier.
1%, the order reserve is rich, and I expect the growth of the public test business in 2019Q4 and 2020Q1.
Earnings forecasts and investment advice.
Based on the number of recruited national examinations and the company’s Q2 and Q3 quarterly reports, we have raised our earnings forecast to a certain extent.
It is expected that EPS for 2019-2021 will be 0.
27 yuan, 0.
37 yuan, 0.
49 yuan, corresponding to PE 68X, 50X, 38X, maintaining the “buy” level.
Risk Warning: There is a risk of changes in recruitment policies and numbers, and the new track may not develop as expected.