Central South Media (601098): Operating income continues to grow steadily

Central South Media (601098): Operating income continues to grow steadily

1Q19 results exceeded expectations. Zhongnan Media’s 1Q19 results: operating income.

400,000 yuan, an increase of 12 in ten years.

36%; net profit attributable to mother 2.

98 ppm, an increase of 13 in ten years.

32%; deduct non-net profit 2.

900,000 yuan, an increase of 17 in ten years.


Accelerated revenue growth led to better-than-expected results.

Development Trend Revenue growth accelerated in 1Q19, and gross profit margin and expenses remained stable.

The company’s operating income in the first quarter of 19 was 18.

4 ‰, an increase of 12 in ten years.

36%, an increase of 2% earlier than in 4Q18. We expect that the 天津夜网 teaching aids business will be stable and better.

Gross profit margin 44.

18%, a decrease of 1 from the same period last year.

89pct, basically stable.

In terms of expense ratio, the sales expense ratio is 14.


Up to 0.

57pct, the management fee rate (including research and development expenses) is reduced by 1 every year.

57pct to 12.

56%, reflecting a certain scale effect.

The general book sales code is slightly affected by the book market.

The company reported that the general general book publishing business realized sales code foreign 1.

48 ppm, a decrease of 6 per year.

93%, operating income fell 8 year-on-year.

91% to 66.12 million yuan, the discount rate dropped slightly.

97pct to 44.

82%, we believe that the downturn in the book market in the first quarter mainly affected sales.

But 苏州夜网论坛 gross profit margin increased by 2.

45 points to 37.

50%, we expect that the price of raw materials will decline steadily.

We expect that the general book business of Tier 1 companies will achieve a slight growth, further consolidating their position in the first square of the national book retail market.

Overall cash flow is solid.

Report operating net cash replacement of first-tier companies14.

05 trillion, an increase of 44 over the same period last year.

89%, mainly due to the decrease in the absorption of deposits held by financial companies and the increase in inter-bank borrowing funds.

In addition, accounts receivable increased by 43.

83% to 18.72 ppm, due to the increase in free textbooks for compulsory education in primary schools, the company expects to recover in May.

Net cash reduction from investing activities decreased by 84.

52% to 49.55 million yuan, mainly because the financial company reset the expired financial investment.

At the end of the period, the company’s monetary capital was 107 trillion, accounting for 53% of total assets.


Continue to maintain the stability of the business and the advantage of abundant cash on the books.

Earnings forecast We maintain our 2019 / 20e earnings forecast at 0.


78 yuan unchanged.

Estimates and recommendations currently continue to correspond to June 2019/20.


9 times P / E.

DCF estimation is used to maintain the recommended level and target price of 15.

5 yuan, corresponding to 21 times the 2019 price-earnings ratio, compared with current expectations of 25%.

The growth of risk textbooks and auxiliary business exceeded expectations, the dividend policy was not sustainable, and Tianwen Digital Media business continued.