Meijim (002621) annual report commentary: consolidated financial performance company officially changed its name to Jimmy

Meijim (002621) annual report commentary: consolidated financial performance company officially changed its name to “Jimmy”
Core point of view: Events: Meijim released the 2018 annual report, and the early education business consolidated the results significantly. On April 17, 2019, Meijim (formerly known as the third base stock) released the 2018 annual report.Realized operating income in 20182.65 ppm, an increase of 49 in ten years.78%; net profit attributable to mother was 3,155.150,000 yuan, an annual increase of 71.90%; if the fair incentive fee is excluded 2,515.30,000 yuan, net profit attributable to mother was 5,670.50,000 yuan, an increase of 208 in ten years.94%; basic profit return is 0.09 yuan / share, an annual increase of 80%; increase in average net asset income by 2.60%, increase by 1 every year.07 points.The growth of the company’s performance is obviously due to the report of the company’s completion of the acquisition of Tianjin Meijie Education Technology Co., Ltd., the consolidation of the early education business 成都桑拿网 significantly increased the company’s revenue and profits. The education business exceeded its performance commitments, and the growth rate of the early education center exceeded the plan; the steady growth of the manufacturing industry According to the data disclosed in the annual report, Meijiemm achieved operating income in 20183.600 million, net profit attributable to mother 1.9 trillion, exceeding the 2018 annual performance commitment.Megem began consolidation in December 2018, and consolidated revenue for a month contributed 33.01 million yuan and contributed net profit of 21.59 million yuan.As of December 31, 2018, there are 434 “Jimmy” brand early education centers across the country.The 389 companies ranked 2018/6/30 had a net increase of 45, and the speed of opening stores exceeded the plan.Kaide Education achieved a net profit of 28.83 million yuan in 2018, exceeding the 2018 annual performance commitment.Since Kaide Education was acquired by the third base, its profitability has continued to improve.The education sector is expected to have little problem in completing future performance commitments in the future. Officially changed its name to “Meijim”, executives plan to increase their holdings, highlighting the confidence of the education industry layout 2019/4/17, the company announced the completion of business registration, the company name was changed to Dalian Meijim Education Technology Co., Ltd., and the company’s securities abbreviation was officially changed to “”Jimmy”, the determination to deepen the education of the main business.March 3, 2019, announced that the general manager of the company, Mr. Liu Junjun, plans to use no less than 30% of the transaction price (after-tax) stack to increase the holding of third base stocks. The management team of Midgem continues to bind deeply with listed companies, demonstratingConfidence in future business development. Investment suggestion: Maintain “overweight” rating. We expect US Jim to achieve net profit attributable to mothers in 2019/20201.64/2.250 thousand yuan, EPS is 0.47/0.65 yuan / share, the current sustainable corresponding PE for 2019/2020 is 47.4/34.5 times.Considering the growth of the industry and the scarcity and leading position of US Jim in an early education sector, as well as the upward movement of the sector’s estimated center brought about by the favorable policy release of the education sector since 2019, US Jim’s 2019 PE valuation of 52 times, a reasonable value244 yuan / share, maintaining the “overweight” rating. Risks suggest that education policies fell short of expectations; competition in the early education industry intensifies risks; and the risk of goodwill impairment.