The stock price is bottoming out and the performance has declined.

Picture source: Oriental IC

The "double reduction" policy has been landing for less than a year, but some "double reduction concept stocks" were no longer beautiful.

As an old listed company across the piano manufacturing and music education industry, the Pearl River Piano and Helen Piano have fallen into the dilemma of stock price bottoming out and downward performance.

Why did the piano education that once burst into piano became dim every year?

Bubbles are back, the stock price bottoms out

Beginning on July 26 last year, the concept of A -share quality education ushered in carnival.

From July 26th to 29th, the Pearl River piano received two daily limit boards within four trading days, with a cumulative increase of 27.33%.

Helen piano is even better. From July 26th to July 30th, Helen Piano harvested 5 days 4 boards. Subsequently, the rise in stock prices continued. As of August 3, 2021, the cumulative increase in the stock price of Helen piano has reached 102.2%, and the stock price has doubled within a week.

The two companies also explained the reasons for the rise in stock prices.

On July 28, the Pearl River Piano announced that the "double reduction" policy was widely reported by the media and focused on investors' attention. Up to now, the company's art education training business has continued to develop and developed, but the business has not proportioned in the company's revenue, the company's fundamentals have not changed significantly, the stock price has increased in the short term, and there may be risks of hype in the secondary market.

On the evening of July 30, Helen Piano also issued an announcement of stock prices, saying that the company's stock price has increased significantly in the near future, but the company's business situation and internal and external operating environment have not changed significantly in the near future. In particular, investors are reminded to pay attention to investment risks.

At that time, the stocks of the two companies rose sharply and caused widespread attention from the media and investors. Some media even reported on the title of "the concept of quality education, and the" selling piano 'suddenly soared to watch the shackles "as the title.

Under the "double reduction" policy of the education industry, the sudden skyrocketing "selling piano" has attracted capital attention. Despite the announcement of the announcement overnight, Helen Piano still received a letter of attention from the Shenzhen Stock Exchange on August 4. The Shenzhen Stock Exchange was concerned that from July 26 to August 3, 2021, the stock price of Helen piano rose 102.20%. During the period, it touched the standard of abnormal fluctuations twice, requiring Helen Piano to explain in detail the business conditions and major matters, and to conduct adequate risk prompts.

In the reply letter on August 6, Helen Piano also made risks that the impact of the epidemic factor on the company's production and operation is still uncertain. Investors are requested to invest rationally and pay attention to investment risks.

And a year later, looking at the current changes in the stock price of the two companies, the original stock price rose was just false and prosperous.

On April 27, 2022, the stock price of the Pearl River piano and Helen piano fell almost at the same time. The stock price of the Pearl River piano closed at 4.97 yuan/share on the same day, down 42.81%from the peak value of 8.69 yuan/share on July 30, 2021; the stock price of Helen piano closed 5.66 yuan/share on the day, from 15.88 yuan at the peak on September 24, 2021 /Shares fell 64.36%.

On April 27, the two companies set a new low since 2014.

Why did the two companies have been hyped at the beginning, and why did they not support the future of being highlighted?

Ten years of listing, the performance has declined

The Pearl River Piano and Helen Piano are undoubtedly a well -known enterprise in the piano manufacturing industry. In June 2012, the two companies successively went public on the Shenzhen Stock Exchange.

Established in 1956, the Pearl River Piano, as the largest piano manufacturer in the world at that time, opened high and high on the first day of listing, closing up by 26.44%.

The two companies are old -fashioned piano makers. After years of development, their performance is relatively stable. It is unknown whether quality education can quickly bring performance improvement.

From the perspective of performance, at least short -term benefits are not obvious. In fiscal 2021, the revenue of the Pearl River Piano and Helen Piano achieved year -on -year growth. During the year, Helen Piano achieved revenue of 522 million yuan, an increase of 9.72%year -on -year; the Pearl River Piano achieved revenue of 2.022 billion yuan, an increase of 15.31%year -on -year.

In terms of profits, the net profit of the Pearl River piano returned to 186 million yuan, an increase of nearly 10%year -on -year; while the Helen piano changed from profit to loss, a loss of 79.615 million yuan throughout the year, a net profit of 31.837 million yuan in the same period in 2020 decreased year -on -year. 350.07%.

At the same time, the net cash flow generated by the two companies decreased year -on -year. Helen piano operating activities in 2021 generated a net cash outflow of 23.7474 million yuan, a decrease of 572.10%from the net inflow of 2020; the net cash inflow generated by the Pearl River piano operation activities was 311 million yuan, a year -on -year decrease of 43.22%.

Talking about the company's development in 2021, the focus of the Pearl River piano is not "double reduction" but market share and music education system. It said that the company's piano sector achieved a total of 1.806 billion yuan in operating income throughout the year, an increase of 13.80%year -on -year, the domestic market share of piano products was 41.54%, and the global market share was 31.1%. During the reporting period, the revenue was 118 million, a year -on -year increase of 25.34%.

Helen piano not only did not stand on the so -called "wind mouth", but even had performance fluctuations. It stated that during the year, affected by the new crown epidemic, the domestic and foreign piano sales markets were impacted, and market terminal consumption demand showed a phased decline. Under the circumstances that most of the domestic epidemic areas are basically controlled, the company's piano product sales market has restored, but the market development has not achieved the expected results. In 2021, piano sales were 35,624 units, an increase of 10.37%year -on -year. At the same time, Helen Piano also said that during the year, the cities such as Fuzhou, Shenzhen, Chengdu and other cities still adopted seal control management measures due to the outbreak of the new crown epidemic, which led to the stopping of offline education and training business. The company's art education business was affected. Unable to reach the expected income. In addition, with the implementation of the "double reduction" policy, the education departments of various places have issued corresponding after -school custody classes and delayed school policies, which has caused students' art training time to shorten, and the training business has also been seriously affected.

Therefore, the company showed signs of investment impairment. The long -term equity investment impairment reserves of Consulting Co., Ltd., Ninglun Hailun New Bach Culture Development Co., Ltd., and Ninglun Hailun Aitari Culture Development Co., Ltd. were 102 million yuan.

From the perspective of financial reports, although these two companies have claimed that they have music education business, the performance of related businesses has contributed very low.

The Pearl River Piano's 2021 Education and Training, Media and other products revenue of 58.806 million yuan, accounting for only 2.92%of the revenue, an increase of 11.04%year -on -year. In 2020, this business also contributed only 3.03%of revenue. In contrast, the sales and post -service of musical instruments are the focus of development. In 2020 and 2021, revenue accounted for 95.21%and 95.94%of total revenue, respectively.

In the financial report of Helen Piano, the revenue contribution of related education and training business and products is hardly seen. From the perspective of the industry, the income of the west instrument manufacturing industry in 2020 and 2021 accounted for 100%of the total revenue. In terms of products, the product revenue of smart piano classrooms related to education is only 421,900 yuan, a year -on -year decrease of 27.4%, accounting for only 0.08%of the total revenue. The proportion of revenue is only 0.12%.

By the first quarter of 2022, the performance of the two companies even declined. The Pearl River piano revenue was 482 million yuan, a year -on -year decrease of 13.72%; the net profit was 53.0605 million yuan, a year -on -year decrease of 16.47%. Helen piano revenue was 97.2139 million yuan, a year -on -year decrease of 24.96%; net profit was 6.3074 million yuan, a year -on -year decrease of 52.35%.

The proportion of related businesses is not large, and the overall performance has not reflected the growth of the outlet in the year, which eventually led to the stock price of the two old -fashioned institutions only stir -fired in the short term without long -term growth.

Moreover, the competitive pressure of the piano manufacturing market is not small. On the evening of April 14 this year, the old-fashioned high-end piano Steinway Company submitted a prospectus to the United States. From 2016-2021, Steinway's annual sales increased from US $ 386 million to US $ 538 million, with an average annual compound growth rate of 6.9%; Net profit rose from $ 3 million to $ 59 million, with a compound annual growth rate of 83.9%. The old -fashioned high -end piano approached capital with good financial performance and aimed at the Chinese market with 30 million piano children.

Looking back at the trend of this year, perhaps at least in the short term, the old -fashioned domestic high -end piano, which is mainly based on the Pearl River piano and Helen piano, is difficult to see the benefits of quality education business intuitively. The long -term attributes of education and the profitability of capital are destined to return to the normal value interval.

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