Phoenix Media (601928): Stable dividends to increase performance

Phoenix Media (601928): Stable dividends to increase performance

Key Investment Events: The company announced its 2018 annual report and achieved revenue of 117 in 2018.

900 million (+6.

7%), to achieve net profit of return to mother 13.

200 million (+13.

6%) and realized non-net profit of RMB 100,000 (+29).


At the same time, the company announced the first quarter report of 2019, and achieved revenue of 23 in Q1 2019.

500 million (+14.

9%), achieving net profit attributable to mother 3.

200 million (+20.

9%), realizing non-net profit attributable to mothers2.

700 million (+34.

5%), the company’s performance exceeded market expectations.

The company’s annual report 南宁桑拿 performance achieved double-digit growth.

The reasons for the substantial increase in the company’s net profit attributable to mothers are as follows: 1) The main business is stable and achieved revenue of 117 in 2018.

90,000 yuan, an increase of 1.

9 units; 2) Better cost control, realizing interest income in 20182.

1 million U.S. dollars, under the strategy of reducing costs and increasing efficiency, the selling expenses and management expenses were basically the same as in 2017;

Affected by the cost of inventory paper, the company ‘s gross margins for teaching and publishing of textbooks are under short-term pressure, and may improve in 2019.

Affected by the higher cost of the company’s previous inventory paper, in 2018, the company’s teaching materials publishing gross margin fell4.

9 grades, the gross profit 杭州桑拿 margin grade of the textbook is 10.

7 units.

It is expected that with the rolling purchase and the company’s stock paper prices stabilizing, the company’s teaching materials, teaching and publishing, and gross profit margins will increase.

Monetary funds on the account exceeded 9 billion, and the proportion of dividends to the company’s net profit attributable to mothers increased by 24.

9 up to 57.


By the end of 2018, the company had monetary funds 91.

400 million, sufficient monetary funds.

In terms of dividends, in 2018 the company plans to pay 3 yuan (including tax) for every 10 shares and a cash dividend of 7.

6 trillion, accounting for 57 of the company’s net profit attributable to its mother.

6%, an increase of 24 per year.

9 units.

The new format began to materialize, and the New Democratic Party took office.

As of April 26, 2019, the number of members of the company’s subject network has reached nearly 26.3 million, covering more than 90% of the nation’s top 100 primary and secondary schools. In 2018, PhoenixEase (the subject network) achieved revenue1.

30,000 yuan, an increase of 36% in ten years, and a net profit of 12.44 million yuan, turning losses into profits for the first time.

At the same time, the company announced in mid-April 2019 that it would hire Mr. Tong Jiangtao as the general manager of the company (the general manager is the deputy general manager of the company), or it would bring new development to the company.

Earnings forecasts and investment advice.
The company’s EPS for 2019-2021 is expected to be 0.
57 yuan, 0.

63 yuan, 0.

67 yuan.

Based on 1) The company’s book currency funds at the end of 2018 were 91.

400 million, imaginable space; 2) the company’s dividend rate has increased significantly, 3) backed by education, a large population province, the company’s teaching materials and auxiliary business has a solid foundation and maintain a “buy” rating.

Risk reminder: The new business development benefit may not be as good as expected, and the original paper price will rise.