Zhonggong Education (002607): Release of 2018 Results Express Report to Mother’s Net Profit Twice Increased 120%

Zhonggong Education (002607): Release of 2018 Results Express Report to Mother’s Net Profit Twice Increased 120%

The event company issued an announcement and realized revenue in 201862.

370,000 yuan, an increase of 54 in ten years.

72%; realized operating profit 13.

40 ppm, an increase of 112 in ten years.

40%; maximize profits13.

400,000 yuan, an annual increase of 114.

44%, net profit attributable to mother is 11.

530,000 yuan, an increase of 119 in ten years.

67%.

The statutory average return on net assets reached 71.

89%, an increase of 4 a year.

96 units.

Brief comment on the sinking of channels is one of the first for rapid income growth.

According to our statistics, the company currently has about 1,000 training outlets across the country +, which has basically covered all prefecture-level cities across the country (except for a few areas such as Tibet), and it has done the best in sinking in the Shandong area, covering more than 90The county-level administrative districts cover about 20% of the county-level administrative districts across the country, and there is still plenty of room for sinking.

In 2017, the company’s directly operated branches increased by 31% each year, and it is expected that it will maintain rapid growth in 2018.

The increase in the proportion of former students among public service candidates in public institutions is the main driving force for the sinking of channels.

According to our grassroots research data across the country, in general, the proportion of non-graduates in public institutions is higher than that of fresh graduates, and the proportion of grass-roots positions in the recruited positions is the scale.The demand for recruiting positions is very strong, which is also the core reason for the channel to sink to county-level administrative districts.

During the sinking of the channel, the agreement class is a beneficial weapon for the company to obtain customers.

In 2017, the company’s agreement class revenue accounted for 72.

7%, ranking increased by 14.
.

7 averages, the ratio of Huatu education is 32 higher.

5 units.

The agreement class is very important for the company’s customer acquisition and customer unit price improvement, and it is also a reflection of the company’s brand power.

The performance in 2018 exceeded the performance commitment, and the increase in net interest rate was the main reason.

Thanks to the manifestation of economies of scale, the development and upgrade of the dual divisions and independent IT systems, the 杭州夜网 company’s net profit in 2018 reached 18.

48%, an increase of 5 over 2017.

47 units.

Profit forecast: The performance commitment of the public education backdoor listing is that the net profit deducted from the mother in 2018, 2019 and 2020 will not be less than 9.

3, 13, 16.

500 million, the company exceeded its performance commitment in 2018, and we remain optimistic about the company’s performance in the next two years.

Risk warning: the channel sinks less than expected