Meijim (002621) Commentary Report: The company changed its name to Meijim + over-fulfilled performance commitments optimistic about the company’s long-term development

Meijim (002621) Commentary Report: The company changed its name to Meijim + over-fulfilled performance commitments optimistic about the company’s long-term development
Events: ① The company released its 2018 annual report and achieved revenue 2.65 ppm, an increase of 49 in ten years.8%, net profit attributable to mothers was 31.55 million yuan, a year-on-year increase of 71.9%; Dividend 0 for every 10 shares to all shareholders.20 yuan (including tax), the capital reserve will be transferred to all shareholders for every 10 shares of 7 shares.② The company’s securities name was changed to US Jim, and the securities code remained unchanged. Core point of view: The acquisition of US Jim has driven the growth of performance, and US Jim has exceeded its performance commitment.The company paid 23 last year.Acquired 70% of US Jim ‘s equity for US $ 100 million. US Jim completed the consolidation in November 18, and US revenue reached 3 in 2018.600 million, deducting non-net profit is 1.9 trillion, achieved consolidated revenue of 33 million yuan, consolidated net profit of 21.59 million yuan; Kaide Education achieved revenue of 68.36 million yuan, realized net profit of 28.93 million yuan, all exceeded performance commitments.The company’s traditional main business realized revenue 1.5 ppm, an increase of 24 in ten years.5%, gross margin is 44.03%, a year-on-year increase of 16%.Affected by the consolidation, sales expenses and management expenses increased by 38% / 147%. At the same time, the report could confirm that the distribution of incentives and amortization was 25.15 million yuan, and pressure on profits was released. The company changed its name to US Jim and further focused on making the education sector bigger and stronger.The market size of the early education industry in 2018 was 175.7 billion yuan, a year-on-year increase of 16.6%, the penetration rate is only 18%, and then gradually increase the early childhood education participation rate driven by the country’s “young childbearing” and the increase in people’s awareness drive the industry growth.Meijim currently has 434 brand centers and is one of the leading domestic early education companies. After the completion of the acquisition, the brand will gradually be realized. Course quality and standardized management advantages will continue to expand, and it will enter India, Russia and other overseas markets in an orderly manner to increase its city share.In terms of Kade education, it serves the field of young students studying abroad. At present, it has 7 directly-managed campuses in first-tier cities, and it is focusing on consolidating the leading positions of staggered follow-ups. The professional and young management team helps the company grow.Before and after the company’s transformation of the education industry, the company hired professionals in education policy and public relations, private education, education investment and asset operations, industry research and other professionals. The senior management team was young and professional, which injected growth momentum into the 杭州夜网 company.vitality. Earnings forecast and estimation: We estimate the company’s net profit attributable to its mother to be 1 in 19-21.5/1.8/2.30,000 yuan, the corresponding EPS is 0.45/0.53/0.66 yuan / share, corresponding to 50/42/34 times the PE, considering the company’s early education leader, trying to adapt to the development trend of the early education industry, and gradually extending from 0-3 to 0-12 years of quality courses, from domestic to foreign,Create an early education benchmarking brand and maintain a highly recommended level. Risk warning: industry competition is intensifying, and the number of applicants has increased significantly

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