Meijim (002621) 2018 Annual Report Review: Renamed Meijim to re-start high-quality early education assets

Meijim (002621) 2018 Annual Report Review: Renamed “Meijim” to re-start high-quality early education assets
Events: 1) 2018 results, revenue 2.65 billion (year-on-year: 49.78%), net profit attributable to mother 0.32 billion (year-on-year: 71.9%), net profit after deduction is 0.15 billion (year-on-year: 10.82%), with a budget benefit of zero.09 yuan. 2) Profit distribution plan: cash dividends are 0 for every 10 shares.2 yuan, and another 7 shares for every 10 shares. Text comments: Combined with the US and Jim ‘s long-term Kade education in December, the share payment fee lowered some of the profits. In February 2017, the company merged with Kade Education, an overseas study and training institution. In November 2018, it completed the acquisition of the domestic early education leader Moji, 2018.It consolidated the initial profit of Kai Tak (2893).360,000 yuan) and US Jim’s December profit (2158.660,000 yuan), rebuilding the basic profit and loss balance of the manufacturing industry.In 2018, the company implemented equity incentives (distribute equity, authorized price) 8.25 yuan), resulting in 25.15 million yuan in equity payment expenses, reducing the company’s net profit on the books.In addition, the company incurred some intermediary fees (non-continuous fees) during the acquisition of US Jim in 2018. High-quality scarce early education assets: The acquisition of US Jim ‘s 都市夜网 assets by US Jim is mainly franchise business, and the profit model is mainly based on “affiliate fee + 9% liquidity sharing”. By the end of 2018, the company has opened more than 400 franchise stores (434)Newly opened stores will gradually contribute to the flow division in 2019. The more stores that are gradually opened, the more flow division.In fact, the original 91 direct-operated stores now contribute a steady stream of monthly sales after the franchise mode is changed. These stores are mainly located in first-tier cities and have higher operating efficiency. In order to eliminate the impact of competition in the same industry, the original direct-operated stores may have a consolidation in the future.There is huge room for improvement in the penetration rate of the domestic early education industry. The US Jim leader is solid 厦门夜网 and stable, with high-quality assets. Investment advice and profit forecast The company ‘s new signings and opening of early education centers have increased unexpectedly. The company enjoys rapid growth in new stores, early education business is scarce and performance can be expected.The former US Jim management team has officially entered into the merger and performance of listed companies to continue to increase their holdings (30% after cash consideration and tax, 40% of which have been completed).Considering the company’s equity payment expenses and the impact of the suspected expenses (impact conflict), it is estimated that the revenue for 2019-2020 will be 7 respectively.1.3 billion, 8.2.5 billion, net profit is 1.6.2 billion, 1.7.4 billion (previous value was 1.6.1 billion, 2.0.6 billion), EPS is 0.47 yuan, 0.50 yuan (0.46 yuan, 0.59 yuan), do not give a target price for the time being, maintain the “overweight” level. Risks suggest that the number of newly opened stores and operating efficiency are less than expected, the performance of US Jim is not up to expectations and high risk of goodwill, the performance of Kade Education is not up to expectations, changes in education industry policies, and the impact of large expenditures.