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Zhejiang Meida (002677): Optimizing Expense Structure and Maintaining Rapid Revenue Growth

Zhejiang Meida (002677): Optimizing Expense Structure and Maintaining 佛山桑拿网 Rapid Revenue Growth

Event: The company released its 2018 annual report and realized revenue of USD 1.4 billion, an annual increase of 36.

5%, to achieve net profit attributable to mother 3.

80,000 yuan, an increase of 23 in ten years.


Revenue in Q4 was 4 in a single quarter.

700 million, an increase of 30% in ten years, realizing net profit attributable to mothers1.

3 ‰, an annual increase of 4.


Revenue maintained rapid growth, and advance receipts were slightly broken down.

Since 2018, affected by the post real estate cycle and economic growth, the kitchen appliances sector has continued to weaken.

Integrated stoves are receiving dividends to increase dividends, and revenue continues to grow rapidly, but the base of the integrated stoves industry has gradually increased, and it is more difficult to hedge than previous sales due to changes in actual sales; gradually expanded, industry expansion gradually expanded, and competition tended to be fierce.As an industry leader, the revenue growth rate in the industry fluctuation period shifted from the previous quarter.

Company advance receipts1.

3 trillion, about 47 million in the earlier quarter.

Gross / net margin continued to pick up from the previous month, and the expense ratio structure was optimized.

The company’s main business gross profit margin decreased to 49% in Q2, the lowest gross profit margin in recent years. In Q3Q4, the gross / net margin continued to rise for two consecutive quarters. Gradually, the company’s gross profit margin was 51.

5% twice a year 2.

4pp; net interest rate is 27%, each time reduced by 2.


In terms of expenses, the annual sales expense ratio is 11%, which is increased by 1.

2pp, management expense ratio 8.

7% twice a year 2.

7PP, the overall period expense rate is basically flat, but the structure is optimized, which improves management and operation efficiency, and as a growth stage product, the increase in publicity expenses increases, more in line with the C-end company’s expense structure.

The continuous layout of multi-channel construction.

In 2018, the company developed a total of nearly 200 first-tier dealers and more than 400 terminal stores. As of the end of December 2018, the company had a 1300-tier dealership and nearly 2,500 marketing terminals. At the same time, the company actively promoted KA channels and e-commerce channels.Construction, multiple cooperation agreements with mainstream KA and e-commerce platforms, sales of new retail business doubled over the same period last year; gradually, the company actively expanded the engineering channels, and completed more than 10 residential hardcover projects in 2018.

The expansion project was put into construction smoothly.

The company’s annual production capacity of 1.1 million (sets) of integrated stoves and high-end kitchen appliances has been successfully constructed, with a planned total investment of 13.

400 million US dollars. At present, most of the equipment has been purchased and produced, and some equipment has been installed for commissioning. It is expected 杭州夜网论坛 that trial production will be carried out in the first half of 2019.

After the project is completed, it will provide excellent guarantee for the company’s rapid sales increase.

Earnings forecasts and investment advice.

Due to the sluggish real estate terminal sales, we lowered the company’s EPS in 19/20/21 to 0.



98 yuan.

With reference to the comparable expectations of comparable companies, considering the huge space for the integrated stove product industry, the company is given an estimate of 21 times in 2019, corresponding to a target price of 14.

7 yuan, downgraded to “overweight” level.

Risk warning: the risk of real estate transaction volume or large fluctuations, the risk of raw material prices or large fluctuations.