Yitong Culture & Education (430223): New product development driven by the second child + consumption upgrade continues to increase R & D expenses by 35.

9%

Yitong Culture & Education (430223): New product development driven by the second child + consumption upgrade continues to increase R & D expenses by 35.

9%

Event: The company released its semi-annual report for 2019, and the company achieved total operating income3.

08 thousand yuan, -1 a year ago.

6%; net profit attributable to mother is 5,900.

530,000 yuan every year -5.

08%.

“Online + Offline” multi-level training system, the overall service organization of the preschool education industry: The company is a professional military early childhood education service and product management company, committed to education management innovation, teacher training innovation, product design innovation, network servicesInnovate and provide high-quality products such as operation management, educational books, educational equipment, teacher training, and network services for kindergartens nationwide.

The products are mainly based on distribution, and a channel network covering the whole country and deep into regions and counties is established. There are 26 training centers in the country. Through the “online + offline” multi-level training system, it provides a “one-stop” overall for kindergartens across the country.solution.

Established a complete science security education curriculum system and launched a series of new products: The company comprehensively launched Yitong comprehensive courses, Yitong sub-curricular courses, Yitong home education courses, Yitong indoor game courses, Yitong outdoor game courses, Yitong outdoor sportsThe course organically combines the goals and contents of kindergarten guarantee education with the five major areas of daily life to create a comprehensive science guarantee teaching system.

And in the report, the company launched Yitong Math District, Yitong Language District, Yitong Art District, Yitong Music District, Yitong Twisted and Reorganized New Products, From Product to Service, Integrating Superior Resources, Creating Quality Preschool Education, PromotingThe campus is developing in a comprehensive, healthy and sustainable manner.

The company’s 2019H1 R & D expenses are 2509.

780,000 yuan, an increase of 35 in ten years.

9%.

Improving the quality of teacher training and implementing nearly 30,000 offline trainings: In order to meet the needs of preschool teachers’ professional development, the company continues to improve the quality of teacher training, build an “online + offline” multi-level training system, and accurately meet the training needs of the campusTo comprehensively improve the professional development level of preschool teachers.

The report summarizes that the company has implemented nearly 30,000 offline trainings, and has gradually trained more than 700,000 person-times of headmasters, teachers, and parents. Yitong Kindergarten Online School has implemented 795 live online 厦门夜网 courses, and gradually trained the principals and more than 180,000 person-times.

Driven by the promotion of the second child + consumption upgrade, the market prospects of the preschool education equipment industry are broad: Through the implementation of the comprehensive two child policy and the “Private Education Promotion Law” and other policies and regulations, the prospects of the preschool education equipment industry market are becoming broader.

In addition, the State Council’s “Several Opinions on Deepening the Reform and Standardization of Preschool Education” proposes that by 2020, the proportion of children in public parks nationwide will increase to 50% in principle, while actively supporting private parks to provide inclusive services.Sex kindergarten coverage reached 80%.

Under the combined effect of demographic effects, consumption upgrades and other factors, the future growth of the play aids market is considerable.

Investment suggestion: As of the latest, the company’s market size is 13.

55 ppm, corresponding to PE (ttm) of 10.

4X, we recommend paying attention.

Risk reminder: market competition intensifies risks, and intellectual property rights are infringed