Zhonggong Education (002607) Interim Review: Leading Vocational Education Highlights High Performance and Continues High Growth

The performance in the first half of 19 was dazzling, and the profitability control fee level expanded to increase the revenue of the public education in the first half of the year, net profit attributable to mothers, and net profit after deductions were 36厦门夜网.

4 ‰ / 4.

9 ‰ / 4.

700 million, a year-on-year increase of +48.

8% / + 132.

2% / + 138.

8% in the second quarter, single quarter revenue / attributable net profit.

3 ppm / 3.

RMB 870,000, a year-on-year increase of +42.

3% / + 46.

4%.

In the first half of the year, gross profit and net profit increased twice.

2pct / 4.

9pct, sales / management / financial expense ratios are -3.

3pct / -2.

3pct / + 1pct, increase profitability and excellent fee control.

Recruitment training business volume and price rose, comprehensive sequence and online business performance in the first half of the civil service recruitment / public institution recruitment / teacher recruitment and teacher qualification / comprehensive sequence / online training contributed revenue 18 respectively.

twenty two.

1 ‰ / 4杭州桑拿网.

3 ppm / 7.

0 ‰ / 4.

400 million, a year-on-year increase of +26.

3% / + 7.

0% / + 52.

2% / + 89.

4% / + 205.

9%.

The number of recruits / unit prices for civil servants has increased by about 10 pct / 15 pct respectively.

The comprehensive sequence and online training have grown significantly, and their proportions have increased by 6 respectively.

8 and 6.

3 units.

The overall growth of the comprehensive sequence driven by new businesses such as IT and postgraduate research; the increase in the number of on-the-job applicants helped the online business volume and price rise, and the number of participants / unit price YOY + 62.

6% / + 88.

1%.

The layout of outlets nationwide has accelerated, and the overall growth of all regions has been good. As of June 2019, the company has 880 directly operated branches and learning centers in 31 provinces and cities across the country and 319 prefecture-level cities.

The number of teachers is 11,604.

In the first half of 19 years, the revenues of East China / Northeast China / North China / Southwest China accounted for 32%, 12%, 15%, and 10%, respectively, and remained basically stable.

South China’s revenue accounted for 8%, increasing by 2 pct per year.In terms of growth rate, East China / Northeast China / North China / Central China / Northwest China YOY + 50.

9% / + 46.

3% / + 36.

3% / + 47.

7% / + 53.

1%; growth in the Southwest has improved, exceeding growth by 26.

7%; the base figure in South China, an increase of 102 in the first half of the year.

7%.

The company adopts a direct operation model, and its operating structure is highly compatible, which is conducive to rapid expansion.

Accelerate the expansion of categories, the nationwide distribution of outlets, and the leader of vocational education is expected to continue to grow rapidly. The company is the leader in the field of recruiting and training in China, and the field of recruiting and training continues to grow.

In the future, the demand for non-educational vocational education and training industry will continue to be strong. The company is expected to expand its alternative categories, sinking outlets and online growth to further consolidate market share.

We are optimistic about the future development of the company.

We estimate the company’s net profit for the years 19-21 to be 16.

7, 21.

5 and 26.

80,000 yuan, the corresponding EPS is 0.

27 yuan, 0.

35 yuan and 0.

43 yuan.

The track of the public education in China has a high degree of prosperity, and its revenue and net profit have increased rapidly. According to the DCF model, it corresponds to a reasonable value of 15.

4 yuan / share, maintaining the “overweight” rating.

Risk reminders: Macroeconomic fluctuations, intensified market competition, leading to profit failure to meet performance promises, regulatory trends will seriously affect the company’s operations, increased rental labor costs, and the risk of brain drain.