Shandong Publishing (601019): Continuous double-digit growth in core core businesses maintains high profitability
The 2018 annual report was in line with expectations, and the proportion of dividends to net profit increased to 41%.
51 ppm, a five-year increase of 5.
05%, net profit attributable to mother 14.
85 ppm, a ten-year increase of 8.
It is proposed to pay a cash dividend of RMB 2 for every 10 shares.
90 yuan (including tax), a total of 6 cash dividends are distributed.
50,000 yuan, accounting for 40% of net profit attributable to mothers in the consolidated statement.
76%, compared to 38 in 2016/2017.
57% / 33.
64%, based on the closing price of the annual report disclosure date, divisor 3.
Core core businesses maintained double-digit growth, and diversified operations remained stable.
Publishing revenue 25.
20,000 yuan, a year-on-year growth of 12%, and income from issuance business of 66.
54 ppm, an increase of 12 in ten years.
As an industry leader, the company’s publishing business has seen double-digit growth for two consecutive years, and its distribution business has seen double-digit growth for three consecutive years. It has performed very well in the industry.
Diversified operations are advancing steadily. In 2018, materials and total foreign trade revenue22.
9 billion US dollars, a slight reduction in one year, with less impact on profits.
The company’s outstanding marketization capabilities, product social effects and market competitiveness have both improved. In 2018, the company won a national ranking and was selected into 109 national re-evaluations, an increase of 68%. Generally, it is a book publishing sales code.
8 billion yuan, operating income4.
75 ppm, an increase of 20 each year.
31%, a high growth rate among publishing companies.
Costs and expenses are well controlled, gross profit margin and net profit margin are stable.
Publishing business gross margin 30.
07%, a slight contraction, mainly due to the rapid growth of paper materials fees and manuscript fees, paper materials fees in 20186.
53 ppm, an increase of 21 in ten years.
58%, the converted paper price gradually fell to the 2017 level in 2018, and the gross profit margin of the publishing business is expected to recover.
The gross profit margin of the issuing business was 34.
44%, unchanged from 2017.
The company’s expense ratio performance is solid, with sales expenses8.
79 trillion, an increase of 12 over the same period last year.
93%, administrative expenses 11.
3.6 billion, an increase of 12 over the same 北京桑拿洗浴保健 period last year.
45%, due to employee compensation, increased depreciation expenses, financial expenses -2,378.820,000 yuan, basically unchanged from the same period last year.
Optimistic about Shandong’s local market potential.
Shandong ‘s education budget accounts for the highest proportion of public finances in all provinces. 2016-2018 is the peak period of birth in Shandong Province. It is expected that the growth rate of primary and secondary school-aged population in Shandong Province will gradually increase to 5% by 2023.Tap the potential of the local education market.
In the field of mass publishing, under the background of policy encouragement and consumption upgrade, Xinhua Bookstore ushered in the possibility of transformation and upgrading. From 2015 to 2018, Xinhua Bookstore’s general book sales volume and income continued to grow rapidly.
The publishing sector is expected to benefit from industry dividends and increasing concentration.
Maintain the “Buy” rating and expect the company’s attributable net profit for 2019/2020/2021 to be 16 respectively.
38 trillion, with growth rates of 8.
2% / 7.
6% / 6.
4%, the corresponding EPS is 0.
88 yuan / share, PE is 12/11/10 times.
Risk reminder: policy risks, the physical bookstore operation is facing increasingly fierce competition, the landing of “two children” is less than expected, and digital publishing has brought an impact on the industry.