Southern Media (601900): Continuously optimize business structure to promote breakthrough development

Company News Company Recent Situation We recently organized a survey on the South Media to communicate with company executives on the company’s 2018 performance and 2019 business outlook.

The core points are as follows: Comment on that 2019 will continue to optimize the business structure and promote breakthrough development.

The company stated that in 2018, the overall goal is to promote the continuous development of enterprises, and the business content has been optimized.

For example, the issuing group has shrunk some of its low-quality businesses, which has led to a slight decline 杭州桑拿 in the profit of the issuing group in 2018.

The company stated that in 2019, it will continue to promote development, actively deepen reforms, accelerate the integration of media, and achieve a double harvest of social and economic benefits.

We expect that the company’s textbook teaching and auxiliary business is expected to be realized as the textbook teaching and auxiliary business benefits from the opportunity of the “three teachings compilation” policy, while benefiting from the increase in the number of students and the growth of market-based teaching aids.
10% growth; and the integration within the province will also bring a certain increase.

  Education bookstore integration is still progressing.

The 51% equity of Guanghong Assets held by Guangdong Commercial and Commerce was transferred to Guangban Group for free. The registration of industrial and commercial changes has been completed on April 23. Southern Media (Guangban Group is its controlling shareholder) and Guanghong Holdings (Guanghong Asset is(Controlling shareholder) constitutes a related party, and Southern Media expects to have a connected transaction of £ 600 million in textbooks / textbooks / purchasing and distribution services with the education bookstore of Guanghong Holding’s subsidiary in 2019. The pricing principles of these related transactions are market pricing.

Guangban Group promises to eliminate related competition through relevant procedures by April 2022.

The company said that the related plan is still being designed and promoted. If the integration can be completed, the market share of the teaching materials and auxiliary distribution business in Southern Media will increase, and the reduction of exemptions and the improvement of channel efficiency will bring thicker profits.

  Breakthroughs have been made in digital textbook work.

In 2018, under the guidance of the Guangdong Provincial Department of Education, Southern Media implemented the “Full-scale Application of Digital Curriculum Application in Guangdong Province National Curriculum” project. The digital textbook application platform was officially launched in September of that year, providing more than 400 full-disciplinary versions of all subjects in the compulsory education stage. Volume of national curriculum digital textbooks.

This part of the operating income has been reflected in other categories divided by industry in the 2018 annual report, and the estimated volume is 60 million yuan.

  The company stated that in the future, it will strengthen its comprehensive cooperation with the provincial education department in the field of education informatization, covering more than 11 million compulsory education teachers and students in Guangdong Province, and strive to become the “Guangdong Province Digital Textbook Supplier” and “Digital Education Public Service Platform”.Support construction and operation units, and become a unified portal for digital education products in schools throughout Guangdong Province.

  It is estimated that the EPS forecast for 2019/20 is maintained at 0.

85 yuan / 0.

92 yuan.

The company’s current consensus corresponds to November 2019/20.


9 times P / E, maintaining recommended level and target price of 11.

80 yuan, corresponding to 14 times the 2019 price-earnings ratio, potential 17.

65% upside.

  The risk textbook teaching and auxiliary business policy changed, and the province’s textbook teaching and auxiliary business integration was lower than expected.