Meijim (002621): Educational business is beautiful Meijim & Capita has exceeded its promise
Key Investment Events: The company released its annual report and realized revenue in 18 years.6.5 billion, an increase of 49.78%, net profit attributable to mother is 3155.150,000 yuan, an increase of 71.90%, deducted from the mother after returning to 1522.350,000 yuan, an increase of 10.82%.Basic income is 0.09 yuan / share.It is planned to increase the capital reserve by 7 shares for every 10 shares, and a cash dividend of 0 for every 10 shares.20 yuan (including tax), the dividend rate is 22%. Opinion: Midgem has exceeded its performance commitment and opened 105 stores.In 18 years, USJEM achieved revenue 3.6.2 billion, an increase of 67%, attributed to the mother’s net profit1.9.1 billion yuan, an increase of 118%, over-completed 1.800 million performance commitment.Consolidated income for the first month (December 18) contributed 47.15 million yuan, taking into account 70% of the rights to contribute 21.59 million yuan in net profit.As of the end of 18 years, a total of 434 stores had been launched nationwide, an increase of 105 at the end of the previous 17 years, showing an accelerated expansion trend, which in turn triggered a strong brand influence to maintain the speed of 100 stores. Kai Tak Education operates well and contributes to incremental performance.Kai Tak Education achieved revenue of 68.36 million yuan in 18 years, an increase of 20.3%, net profit 28.83 million yuan, an increase of 26%, net interest rate from 40 in 17 years.3% increased slightly to 42% in 18 years, exceeding the performance commitment (26 million yuan).There are currently 7 directly operated stores in Beijing, Shanghai and Shenzhen, which are operating well. Affected by fair incentive fees, the expense ratio increased during the period.Selling expense ratio 5.59% (-0.48pct), the management expense rate is 28.58% (+11.29pct), which is mainly affected by the distribution of incentive costs. Excluding this effect, the actual management expense ratio is about 19.13% (+1.84pct), R & D expense ratio 2.88% (-1.22 pct), 南京桑拿论坛 financial expense ratio -1.01% (-0.68pct), with an expense ratio of 36 during the period.04% (+8.91 points). Net margin has improved significantly.The company’s 18 years of total net profit attributable to mother 3155.150,000 yuan, of which the 18-year equity incentive fee is paid 2515.300,000 yuan, excluding the expected impact, the actual net profit attributable to the mother is 5670.460,000 yuan, an increase of 208.94%, net interest rate 21.4% (+ 11pct). Investment suggestion: The company’s education business has excellent answers in the past 18 years, and both Meigem and Kade Education have exceeded their performance commitments.The pace of Megem’s rapid expansion continues, with the potential for acquisition of direct business.The short name was changed to “US Jim” to further highlight the attributes of education 都市夜网 business.The early education industry is less affected by policies, and the second and third tier cities have a lot of room for sinking. As a leader in the industry, Meigem helps to benefit from the increase in penetration and concentration.It is expected that net profit attributable to mothers will be realized in 19/20/21.92/2.27/2.84 trillion, with a current market value of 78 trillion, corresponding to an estimated 41x / 34x / 27x in 19/20/21, maintaining the “Buy” rating. Risk warning: The expansion of the franchise center is slower than expected; the policy risks brought by the early education industry’s introduction of laws and regulations.