\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 811 Xinhua Winshare Publishing And Media Co.Ltd(601811) )
Key investment points
Performance summary: Xinhua Winshare Publishing And Media Co.Ltd(601811) released the annual report for 2021. According to the announcement contents: 1) the company achieved a revenue of 10.46 billion yuan in 2021, with a year-on-year increase of 16.1%; The net profit attributable to the parent company was 1.31 billion yuan, a year-on-year increase of 3.4%; Net profit after deduction of non return to parent company was RMB 1.31 billion, with a year-on-year increase of 11.9%. 2) 21q4 single quarter revenue was 3.4 billion yuan, a year-on-year increase of 3.7%; The net profit attributable to the parent company was 600 million yuan, a year-on-year increase of 18.7%.
The publication of teaching materials and teaching aids has increased steadily, and the publication of general books has gradually recovered from the epidemic. In terms of business, the group’s publishing business recorded a revenue of 2.83 billion yuan in 2021, an increase of 15.9% from 1.86 billion yuan in 2020, and the gross profit margin decreased by 1.99 percentage points. In terms of breakdown, teaching materials, teaching aids and mass publishing are the two core revenue sources of publishing business; In the publishing business, the sales of teaching materials and teaching aids amounted to 2.89 billion yuan, realizing a sales revenue of 1.62 billion yuan, a year-on-year increase of 12.1%, and the gross profit margin was 44%, a year-on-year increase of 0.39 percentage points. In the publishing business, the sales revenue of general books was RMB 3.11 billion, with a year-on-year increase of 19.5%, mainly due to the recovery of the compilation, printing and distribution of self owned published books from the damage of the epidemic in 20 years, with a gross profit margin of 24.5%, a year-on-year decrease of 5.6 percentage points, which was mainly affected by the increase of sales discounts and the adjustment of contract performance costs.
The distribution business continues to grow, and educational services have great potential. 021. The issuance business realized a revenue of 9.02 billion yuan, a year-on-year increase of 15.7% and a gross profit margin of 29.9%. Among them, the sales of teaching books made a great contribution, with a sales revenue of 5.37 billion yuan, an increase of 12.5%. In 2021, the education service business continued to make efforts. The group made full use of the strategic opportunities of the new college entrance examination reform and the education informatization 2.0 action plan to continuously promote the optimization and upgrading of the “excellent learning and excellent teaching” online service platform, covering 6250 schools and serving 4.27 million students; In 2021, the province’s labor and practical education services achieved a total sales of 49.98 million yuan and served nearly 120000 students; 539 teacher training projects were organized and implemented, with an order amount of 35.57 million yuan and more than 102000 teachers trained.
Embrace the new era of Internet e-commerce and optimize logistics operation and management. Internet sales revenue in 2021 was 2.3 billion yuan, of which the main business revenue was 2.26 billion yuan, a year-on-year increase of 39%, mainly due to the expansion of all channels including third-party e-commerce platforms, the company’s official website and new media e-commerce, as well as the improvement of logistics operation ability. In 2021, the company carried out more than 1000 live broadcasts through the way of “self support matrix + cooperative talent matrix”, with more than 250 million original short videos played, and achieved sales of more than 40 million yuan.
Profit forecast and investment suggestions: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 1.43 billion yuan, 1.57 billion yuan and 1.74 billion yuan respectively, and the corresponding PE will be 8 times, 7 times and 6 times respectively. Considering the steady growth of the company’s main distribution business, the main businesses such as mass publishing and physical store sales have basically come out of the haze of the epidemic, educational informatization has contributed new increment and maintained the “buy” rating.
Risk tips: 1) relax the policy of market access or industry supervision; 2) The risk of intensifying market competition; 3) The company has management risks caused by scale expansion.
