Urban Media (600229) Annual Report Review: Steady Growth in Main Business Expects New Business Contribution

Urban Media (600229) Annual Report Review: Steady Growth in Main Business Expects New Business Contribution

The annual report was slightly lower than expected, the main business grew steadily, and commercial real estate depreciation dragged down the performance.
The company disclosed its 2018 annual report: revenue 21.

7 billion, a 10-year increase.

19%; net profit attributable to mother 3.

48 ppm, a five-year increase of 5.

66%; net profit of non-attributed mothers 2.

84 ppm, a ten-year increase1.

65%, a cash dividend of 2 yuan will be paid for every 10 shares, and the dividend rate will be 40%.

The performance was slightly lower than expected. It was mainly opened by Qingdao Media City 杭州桑拿 Plaza during the year. It is still in the incubation period. The depreciation of newly converted solid assets dragged down the performance. After excluding the impact of depreciation, the growth rate of net profit attributable to mothers reached 16.

65%.

EPS is expected to be zero in 19-21.

55/0.

63/0.

69 yuan with a target price of 9.

35-9.

90 yuan, maintaining the overweight level.

The publishing business grew steadily. Education, fashion, and children went hand in hand for 18 years. The publishing sector achieved revenue9.

2.8 billion, an increase of 10.

48%, gross margin 47.

17%, the same increase of 0.

62 points.

7,518 books were published in 18 years, an increase of 13% and a reprint rate of 85.

6%, the same increase of 5.

6 points.

From the perspective of categories, the social sciences and humanities section “Three Gorges” and “The Complete Works of Yungang Grottoes” and other projects have been selected into the national special plan; the education and publishing section, based on the continued maintenance and promotion of the green version of the national standard textbooks, has been launched in 18 yearsMore than 20 new projects such as Classics and Mental Health Education, and the best-selling teaching aid “Plus Points” have been upgraded. The children’s book section, published original picture books, love yourself, Miyata Yaya, juvenile reading and other popular series;Fashion life sector, to create professional publishing of fashion life, further cooperation with foodie Cai Lan, publishing a series of books to find taste, forming a green version of Cai Lan IP.

Distribution, retail, network, and library go hand in hand, successfully exploring the operating model of the theme bookstore for 18 years and achieving revenue of 17 in the issuance segment.

7 billion, an increase of 9.

60%, gross profit margin 20.

73%, with an increase of 0.

32 points.

Retail, Internet, and library distribution go hand in hand. The chain of cultural service brands, including Qingdao City Media Plaza, BCMIX, Qingdao Study, Han Yong, Mingyue Island, and Zhanqiao Bookstore, are built together with smart book kiosks and urban study rooms as core productsThe “free book reading system” supports each other.

The thematic publication “Xi Jinping governs the country” and other political theory books sold 1.46 million copies; the theme bookstore BCMIX composite cultural consumption space has opened more than 30, covering Beijing, Shanghai, Shenzhen and other cities.

Qingdao City Media Plaza is in full operation. Due to the impact of depreciation of new fixed assets, the operating entity Qingdao Media Development Corporation has annual revenue of 226.3 billion, which translates to 58.37 million, dragging down overall performance.

The rapid development of new formats, new media, film and television, investment projects, multi-project landing companies, new media and film and television, and other new business segments are developing rapidly. Digital time, Lanxun, Carpenter Voice, Qingyun ladder and other digital products are used to create a new media matrix. Lanxuan CorporationThe product matrix hits 300 million hits, and the total number of followers exceeds 500,000. The “Exactly” radio section of Cargo Sound entered the top 10 of the Himalayan women ‘s column list. A number of projects of film and television companies progressed in an orderly manner. In June 2018, the first sessionThe National Film Festival of OECD, the film and television company and Pakistan co-produce international economic and trade cooperation to transform the film project officially launched, and will gradually launch TV dramas and long-form documentary.

The investment sector invested 40 million U.S. dollars indirectly to invest in the E-round financing of the Himalayan red-chip structure main body, which is expected to bring considerable investment income.

39.
The main business grew steadily, depreciation dragged down the performance growth in the short term, and the company maintained a steady increase in the main business of the overweight rating company. The profitability of the company gradually improved, and its comprehensive gross profit margin.

09%, with an increase of 0.

31 points.
As it is expected that the depreciation of Qingdao Media City Plaza is still increasing and the short-term performance improvement is dragging down, the expense ratio is higher than the previous forecast. The 19/20 profit forecast is reduced by 15% and 20%.87/4.

42/4.

820,000 yuan, EPS is 0.

55/0.

63/0.

69 yuan, refer to comparable company 2019PE 17.

2 times, giving 17-18 times 2019 PE, target price 9.

35-9.

90 yuan, maintaining the overweight level.

Risk warning: Qingdao Media City Plaza’s cultivation progress is less than expected.