Xinhua Wenxuan (601811) 2019 Third Quarterly Report Review: Deducting Non-Net Profit Increases 30% Year-on-year, Bestseller Effect Drives High Growth of General Book Retail Code
Company dynamics The company announced the third quarter report of 2019, and the company achieved revenue of 58.
2.8 billion, an annual increase of 6.
38%; net profit attributable to mother 7.
470,000 yuan, an annual increase of 24.
56%; net profit after deduction is returned to mother 7.
1.3 billion, an annual increase of 29.
Matter comments The general book publishing business has a high sales code, and the gross profit margin of the textbook teaching and auxiliary publishing business has increased. The company’s general book publishing business has achieved sales code 18 in the first three quarters of 2019.
660,000 yuan, an increase of 18 in ten years.
52%; realized income 6.
22 ppm, a ten-year increase of 8.
The company’s general book sales code increased rapidly, especially for children’s books.
The company’s best-selling book, the “Miaoquan Series” has become a prominent extracurricular reading material for people in the middle and lower grades of elementary schools. In the 8-month retail list of children’s books published in open books, the “Miaohuan” series is top-selling19 of the top 30 books.
Due to the relatively high sales volume of children’s books and e-commerce channels, and more discount activities, the company’s general book revenue growth rate is slightly lower than the code foreign growth rate.
The company’s textbook teaching and auxiliary business maintained a steady development momentum. The first three quarters of the textbook teaching and 杭州桑拿网 auxiliary publishing and distribution business achieved positive growth in the average value of revenue and revenue.
Benefiting from the company’s own cost control of education and publishing products, certain results were achieved, and the company’s gross profit margin for the publication of teaching materials and teaching aids increased.
01 single, driving the company’s comprehensive gross profit margin to achieve positive growth.
Increasing income and the increase in investment income The company’s net profit growth rate is due to the company’s associate company, Tibet Venture Capital, the first three quarters of profit growth, so the company’s equity-based investment income of associates increased significantly.
In addition, due to the time difference in the implementation of the gradual first-collection-refund policy for publishing companies, the gradual tax refund received by the company this year increased by about 50 million yuan compared with the same period of the previous year.
The book publishing and distribution business of the combined company’s main business continued to maintain steady growth. The combination of multiple factors contributed to the company’s first-quarter net profit and net profit growth after deductions exceeded expectations.
Profit forecast and forecast The company’s education and publishing business has developed steadily, and the general book business has grown rapidly, and the “Mi Xiaohuan” series of brands have significant effects.
We continue to be optimistic about the company’s future development. It is expected that the company’s net profit attributable to shareholders of the parent company will be 11 in 2019-2021.
5.6 billion, 12.
9.5 billion and 14.
49 ppm; EPS is 0.
94 yuan, 1.
05 yuan and 1.
17 yuan, corresponding to PE 13.
73 and 10.
48 times, maintain the “cautious increase” rating.
Risk warning policy risks; increased competition in the industry; fluctuations in raw material prices; risk of failure of government tenders; increased channel discounts;