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Gujia Household (603816): 24% revenue growth in the first half of the year, endogenous extensions help expand and continue to increase


Gujia Household (603816): 24% revenue growth in the first half of the year, endogenous extensions help expand and continue to increase
Performance review Maintaining outperforming industry 1H19 results in line with our expectations of the company’s 1H19 results: revenue of 50.10,000 yuan, an increase of 23 in ten years.7%; net profit attributable to mother 5.59 trillion, corresponding to a profit of 0.93 yuan, an annual increase of 15.8%, deducting non-net profit 4.32 ppm, a 10% increase in ten years, in line with our previous performance preview expectations.Among them, Q1 / Q2 revenue increased by 32.8% / 16.1%, net profit attributable to mothers increased by 10.0% / 23.0%.  Development trend 1, endogenous extension helps the steady growth of revenue in the first half of the year.1H19 company revenue increased by 23.7%, by product, sofa / accessory products / bed products / custom furniture / mahogany furniture revenues increased (decreased) 31.8% / 8.9% / 38.0% / 67.6% /-21.7%, the target RB / Banqi / Cavan Home / Natuz / Priority Home / Xibao Home was merged from June / April / November / August / July / December last year,Affected by the time of consolidation, epitaxial factors have accelerated the growth of the 1H19 income end.By region, the company’s territory / foreign revenue increased by 10 respectively.1% / 48.0%, the rapid growth of export sales was mainly driven by factors such as the consolidation of Xibao Home Furnishings.  2. Profitability improved in the second quarter, and the quality of statements continued to improve.In the second quarter of 19, the company achieved a gross profit margin of 36.5%, increase by 0 every year.9ppt, an increase of 1 from the previous quarter.8ppt, mainly due to falling raw material prices and high-growth categories (1H19 sofa / bed products gross margin 36.3% / 42.6%, revenue growth rate 31.8% / 38%) and other factors.In the second quarter of 19, the company’s sales expense ratio decreased by 3.2ppt, increase in management + R & D expense ratio by 1.2ppt, mainly due to the increase in employee compensation, the financial expense ratio increased by 1.7ppt, mainly due to the increase in interest expenses each year, leading to increased interest expenses.Under the comprehensive influence, the company’s 2Q19 net profit margin increased by 0.6ppt to 10.3% (down 2 in the first quarter of 19).5ppt).Due to the continuous optimization of inventory turnover and other aspects, the company’s net cash flow from operating activities increased by 333 twice.6%, the quality of statements continued to improve.  3. Build a moat of terminal retail capacity and be optimistic about the company’s long-term market share trend.  In terms of domestic sales, in order to strengthen the awareness of terminal demand and improve the response efficiency of the terminal, the company piloted the regional 北京夜网 retail center system in 2H18 to further decentralize the marketing end. At the same time, it accelerated the informatization coverage of terminal outlets and was optimistic about the company’s long-term retail capacity improvement trend.In terms of export sales, the company increased the proportion of high-margin products through cost control, rationally used favorable factors such as the depreciation of the RMB, and the decline in raw material prices to respond to the impact of tariffs. Subsequently, it was necessary to further observe the changes in the company’s export business profit margin.  Earnings Forecasts and Estimates We maintain the company in January 19/20.97/2.The RMB 34 profit forecast remains unchanged.  The current corresponding 19 / 20e 16 / 13x P / E, maintain outperformed industry rating and target price 42.6 yuan is unchanged, corresponding to 19 / 20e 22/18 times P / E, corresponding to 39% growth space.  Risks Sino-US trade frictions intensify, and raw material prices have risen sharply.