China Education (002607): Expected strong revenue growth trend will continue in 2019, highlighting cost and expense control capabilities
Investment Highlights The company disclosed its 2018 results flash report: Realizing total operating income of 623,698.
780,000 yuan, an increase of 54 over the same period last year.
72%; realized operating profit of 134,002.
770,000 yuan, an increase of 112 over the same period last year.
40%; total profit realized 133,953.
820,000 yuan, an increase of 114 over the same period last year.
44%, achieving net profit attributable to shareholders of listed companies of 115,288.
740,000 yuan, an increase of 119 over the same period last year.
The operating results disclosed by the performance express report are in the middle of the performance performance forecast interval.
Both the sales volume and price rise trend may continue.
We expect that the current civil service sequence and public institution sequence will maintain a trend of rising volume and price, especially the increase in the proportion of negotiated classes, which will play an important role in increasing the passenger unit price.
At present, the number of graduates still maintains a relatively high level of absolute value. At the same time, the attractiveness 武汉夜网论坛 of civil servants and public institution employees to job seekers still has a comparative advantage. We believe that the number is increasing and its long-term trend is determined. The price continues to increase.The city’s market share and market competitiveness will also help the company improve its pricing power.
For the teacher series, it will be the company’s product line with the greatest growth potential in the next two years, mainly from the number of recruiters, and the obvious marginal improvement of the job attractiveness indicator. We are optimistic about the company’s ability to maintain strong growth in the future.
The scale advantage has been improved to raise the level of net interest rate, and the company’s ability to control costs has been prominent.
We believe that in this round of growth, the company 武汉夜生活网 has a certain scale effect in terms of cost management and expense management. This is the result of the company’s early R & D accumulation and market advantages. At the same time, the dual division, independent IT system development and upgrade operationsSignificant progress in digital transformation measures has also helped improve management.
Historical data proves that the company has the ability to predict cost control. We currently believe that the company’s leading advantage is still obvious, and this trend is still expected to maintain.
Advance receipts have grown rapidly and are expected to be the primary reason for higher debt.
Express reports show that at the end of 2018, the company’s total assets were 72.
20,000 yuan, attributable to the owner’s equity of listed companies29.
66 billion US dollars, high debt, we estimate that initially affected by the factors of the advance payment model and the increase in the proportion of agreement classes, which is in line with the characteristics of the industry and the characteristics of the company’s expansion in the past two years, at the same time, the size of advance receipts is also a growth in 2019Growing foundation.
Maintain “Buy” rating.
Revising the company’s profit forecast, it is expected that the company’s attributable net profit for 2018/2019/2020 will be 11 respectively.
7.2 billion, corresponding to 65/47/36 times PE. Maintain “Buy” rating.
Risk reminder: market competition changes unexpectedly, online training erodes the face-to-face market and the company’s online business is lower than expected, policy risks, and unexpected changes in the number of recruits in the public service category.