Zhongguo Education (002607) Interim Review: The interim results surged 132%, the public test was stable, new business speeded up or retained high growth

New business such as public entrance examinations, postgraduate entrance examinations, and online research witnessed rapid growth. The company’s interim results increased by 132%. In the first half of 2019, the company achieved total operating income of 36.

37 ppm, an increase of 48 in ten years.

79%; realize net profit attributable to shareholders of listed companies.

930,000 yuan, an increase of 132 in ten years.


This is mainly due to the company’s public examination business, which has grown by 26% against the backdrop of a sharp decline in enrollment, comprehensive training for graduate entrance examinations, and an online business growth of more than 200%.

The company’s civil service revenue ratio replaced 50.

0%, a decline of 8 per year.

Percentage points; the combined revenue of teachers, integrated and online businesses reached 43.

41%, a promotion of at least 10 units.

This reflects the rapid growth in demand for teaching, examination, and online training markets.

The company’s gross profit margin decreased slightly, and the expense ratio brought about by the scale and brand effects decreased. The company’s comprehensive gross profit margin in 2019H1 was 57.

52%, about 59 at the end of 2018.

08% decreased slightly.

This is mainly due to the increase in the proportion of relatively low gross profit business such as the main sum of face-to-face training and post-graduate training.

2019H1 company selling expenses 6.

750,000 yuan, an increase of 26 in ten years.

16%; administrative expenses 4.

99 ppm, an increase of 27 in ten years.


In the first half of the year, the growth rate of the company’s sales expenses and management expenses were slower than revenue growth, indicating that the company’s scale advantage and market brand influence continued to increase, resulting in a decline in the company’s expense.

The company’s training numbers and customer unit prices both continued to increase. The leading additions highlighted the first half of 2019, and the company’s expanded training numbers reached 178.

900,000, an increase of 44 in ten years.


Among them, the number of face-to-face training was 93.

09 million, an increase of 30 in ten years.

80%; online training is 85.

810,000, an annual increase of 62.


The release of the leading effect has led to a further increase in the unit price of passengers. The unit price of civil servant training and comprehensive training has increased by about 15% each year, and the unit price of online training has increased substantially.

The company has established 880 outlets covering 319 prefecture-level cities, an increase of 25 from 701 at the end of 2018.


We are optimistic about the company’s training market leader and the rapid development of new businesses, and maintain the “strongly recommended” rating. We predict that China Education will achieve revenues of 92 in 2019-2021.

68 ppm, 124.

4.6 billion, 162.

15 ppm, an increase of 48 in ten years.

6%, 34.
3%, 30.
3%; net profit attributable to mothers is 16 respectively.

9.9 billion yuan, 23.

50,000 yuan, 30.

27 ppm, an increase of 47 per year.

4%, 35.

7%, 31.

3%; EPS for 2019-2021 are 0.

28 yuan, 0.

37 yuan, 0.

49 yuan.

Focusing on the firmness of the company’s 杭州夜网论坛 public test training market leader, the rapid development of teaching, test, postgraduate and online training business, maintaining the “strong recommendation” level.

Risk reminder: policy risk, market competition risk, management risk