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Zhibang Home (603801): Faster revenue growth, optimized gross profit margin, and rapid growth in bulk and wardrobe business

Zhibang Home (603801): Faster revenue growth, optimized gross profit margin, and rapid growth in bulk and wardrobe business

Performance summary: The company achieved revenue 19 in the first three quarters of 2019.

60,000 yuan, an increase of 12 in ten years.

9%, realizing net profit attributable to mother 2.

3 ppm, an increase of 14 in ten years.

5%, net profit after deduction of non-return to mother 200 million yuan, an annual increase of 10%.

Q3 achieved revenue of 8.

10,000 yuan, an increase of 16 in ten years.

9%; net profit attributable to mother 1.

2 ten percent, an increase of 13 per year.

1%; the company’s revenue accelerated, and overall performance was stable.

Gross profit margin continued to improve and cash flow improved: The company achieved a gross profit margin of 38 in the first three quarters.

5%, increase by 1 every year.

2pp, of which Q3 single quarter gross margin is 40%, an increase of 1.
.

4pp, mainly due to the gradual expansion of the gross profit margin growth of the wardrobe business, and the report expects that the gross profit margin of the settlement business of the engineering business is higher.

The company’s total expense ratio for the four periods was 25.

3%, up 2 every year.

6pp, Q3 single quarter is 23.

9%, an increase of 3 per year.

5pp, mainly because the company increased sales promotion efforts in the third quarter, the sales rate increased.

In terms of split items, the sales rate for the first three quarters was 15.

6%, up by 1 each year.

2pp; management + R & D fee pricing 9.

8%, rising by 1 every year.

8pp; Finance fee rate -0.

1%, flat for one year.

In summary, in the first three quarters, the company’s net profit attributable to its parent was 11.

9%, a slight increase of about 0 a year.

2pp, overall profitability remains stable.

At the same time, the company’s net operating cash flow was 2 trillion, an annual increase of nearly 9%, and the cash flow situation improved.

Accounts received in advance amounted to 68.9 million yuan, flat for one year.

The bulk business 北京桑拿会所 grew rapidly, and the distribution channels developed steadily.

As far as H1 is concerned, the company’s bulk business realized revenue2.

100 million US dollars, an annual increase of nearly 25%, bulk orders still maintain a rapid growth trend, its revenue is expected to reach 600 million US dollars, the annual growth rate is expected to reach 50%.

The company’s distribution channel revenue has been slightly challenging for 19 years, mainly because the company is adjusting the distribution sales team, and the adjustment has been completed.

However, the expansion of the company’s distribution channel stores is still proceeding normally. In the first half of the year, the company’s net increase in cabinet stores was 43 to 1,263, and the number of closet stores increased by 154 to 880. Therefore, the target opening of the 杭州夜生活网 store was 150 cabinets and 350 wardrobes.

Multi-category development, high-speed growth of the wardrobe business.

In the first half of the year, the company’s wardrobe business achieved revenue 2.
6 ‰, an increase of 74% in ten years, continued to maintain rapid growth, the third quarter is expected to maintain a growth rate of more than 70%.
At the same time, the company’s wooden door business is also steadily advancing. At present, the total number of fusion stores has exceeded 880. In the first half of the year, nine sets of 18-item development packages have been promoted and listed.New growth points.

In terms of production capacity, the company currently has a production capacity of 320,000 cabinets and 200,000 wardrobes, and the 180 factories it has invested in are steadily advancing. After completion, the company’s wooden door production capacity will further increase.

Earnings forecasts and investment advice.

The EPS for 2019-2021 is expected to be 1.

42 yuan, 1.

76 yuan, 2.

14 yuan, corresponding to 14 times, 11 times and 9 times the corresponding PE, maintaining the “buy” level.

Risk reminders: the risk of fluctuations in raw material prices; the risk of increased competition in the industry; the risk of less-than-expected development of the whole house space.