\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 098 China South Publishing & Media Group Co.Ltd(601098) )
Performance summary: the company announced the operation of Q1 in 2021. In the first quarter, the company achieved an operating revenue of about 2.4 billion yuan, a year-on-year increase of 14.5%; The net profit attributable to the parent company was 270 million yuan, a year-on-year increase of 2.7%; After deducting non profits, the company realized a net profit of 310 million yuan, a year-on-year increase of about 20%; Non recurring gains and losses are mainly caused by changes in the fair value of financial assets held by the company’s funds.
Excellent publishing and distribution ability is the foundation of the company’s long-term value. According to the data of open book inspection, in the past 2021, China South Publishing & Media Group Co.Ltd(601098) accounted for nearly 3% of the real world in the national comprehensive book market, ranking fourth; Book stores rank third in the national physical retail market, accounting for 8.2%. As a provincial publishing group, the stable market share in the country once again shows the excellent competitiveness of the company in the general book market. In the market segments, the comprehensive sectors of composition, popular science and art rank first in the national comprehensive retail market, second in psychological self-help and family education, and third in literature, biography, music, art and photography. Hunan textbooks such as mathematics and geography have made breakthroughs in many markets outside the province.
The extensive reading system has become a new driving force for the company’s growth. Unlike the plight of traditional publishing groups, which are stable but weak in growth, China South Publishing & Media Group Co.Ltd(601098) actively seeks business breakthroughs. Under the background of the “big Chinese” strategy, a series of excellent extensive reading books have been launched, and very good market feedback has been obtained. Among them, the reading system with “four-dimensional reading” intensive reading and “campus shared bookstore” extensive reading as the core has gradually taken shape, and the sales of “four-dimensional reading” products are nearly 400 million yuan.
Actively integrate into the construction of digital economy. In the context of the country vigorously promoting the development of digital economy, China South Publishing & Media Group Co.Ltd(601098) actively accelerate the digitization of existing businesses and resources. The pilot of “E-Party good course” digital products has been launched, and digital education products have entered more than 10000 colleges and universities in 25 provinces, 174 prefecture level cities and 632 districts and counties. Eco cloud open platform aggregates 11.09 million users, that is, various other big data; The registered users of shell reached 5.87 million, with a year-on-year increase of 1.02 million; The registered users of Zhongnan Xunzhi mobile application reached 5.14 million, an increase of 960000 year-on-year.
Profit forecast and investment suggestions. It is estimated that the company’s net profit attributable to the parent company from 2022 to 2024 will be 1.62 billion, 1.81 billion and 1.92 billion, EPS will be 0.9 yuan, 1.01 yuan and 1.07 yuan, and the corresponding PE will be 10 times, 9 times and 8 times. Considering the steady growth and high dividend yield of the company, we maintain the “buy” investment rating of China South Publishing & Media Group Co.Ltd(601098) .
Risk warning: the risk of national policy or change, and the risk that the epidemic continues to exceed expectations.
