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Sofia (002572) 2019 First Quarterly Report Review: Big Home Strategy Continues to Promote Recovery to Steady Growth


Sofia (002572) 2019 First Quarterly Report Review: Big Home Strategy Continues to Promote Recovery to Steady Growth
Matters: The company released the 2019 first quarter report on April 25, 2019.Realized operating income in the first quarter of 201911.8.5 billion, down 4 previously.67%; net profit attributable to mothers1.0.7 million yuan, an increase of 3 in ten years.69%, net profit after deduction is 0.7.9 billion, down 18 previously.32%.Realize a basic gain of 0.12 yuan.  Comment: In the first quarter, revenue has been under pressure each year, and the growth rate has turned positive.The company’s Q1 single quarter revenue fell 4 year-on-year.67%, a quarterly growth rate over the fourth quarter (ten years +15.4%), a significant decline, of which wardrobe and accessories income 9.7.7 billion yuan (year -7.11%), income from cabinets and accessories1.0.8 billion (previously +12.98%), income from furniture and household products is 0.6.2 billion (decade-10).91%), wooden door income is 0.2.8 billion (previously +36.10%).In Q1, the net profit attributable to the mother for a single quarter is +3 for ten years.69%, reverse Q4 single quarter growth rate (ten years -19.(3%) is negative. We believe that the first is the change in the company’s income structure and the increase in profitability. The second is the company’s production-side efficiency.It is expected that the company will continue to intensify its efforts in market development in 2019 and increase in demand brought about by the expected recovery in real estate and real estate, and the company’s performance will promote continuous improvement.  Gross profit margin decreased and net profit margin increased.The company’s gross profit margin in the first quarter of 2019 was 34.39%, a decrease 四川耍耍网 of 0 every year.36pct, which has a gross profit margin of 37 for wardrobes and accessories.65% (decade +0.10pct), gross profit margin of 20 cabinets and accessories.84% (decade +2.85pct), furniture gross margin of 19.80% (decade -5.97pct), gross profit margin of wooden door -4.95% (twice -2.30pct).As for the period expense ratio, the sales expense ratio increased by +1 due to the company’s continued vigorous market development and the increase in 315 promotional marketing expenses.63pct to 12.78%; management and R & D expense ratios are flat each year and remain at 12.93%; financial expense rate for ten years +0.24pct to 0.57%.Under the comprehensive influence, the company’s net interest rate further increased1.19 points to 8.09%.We expect that the company’s profitability is expected to increase steadily through the continuous improvement of the company’s production-side efficiency and optimization of its product structure.  The construction of large homes has accelerated, and the unit price of customers has steadily increased.As of March 31, 2019, Sofia Whole House has 2522 specialty stores (12 more than the end of the previous year), 822 Smi stores (an increase of 0 from the end of the previous year), and 134 Milano wooden doors stores (compared toIn the morning, it increased by 6 at the end of the year), and there were 137 large home stores (up from 39 at the end of the previous year); at the same time, the company plans to build 300/100/100/150 Sophia / Smi / Milanana / Large Home fusion stores in 2019.We believe that the continuous expansion of channels is the foundation for the company’s rapid development potential.As for the unit price of customers, the unit price of customized wardrobes and other supporting cabinets in the first quarter was +2.43% to 10825 yuan / order (factory price, excluding Simi cabinets, wooden doors) maintained steady improvement.  Continue to be optimistic about the company’s long-term development and maintain the “strong push” level.We continue to be optimistic about the comprehensive development strength of the company’s channels, products, and brands, and maintain the company’s expected net profit of the company for 2019-202110.74, 12.29, 14.RMB 08,000, corresponding to 19, 16, and 14 times the current market capitalization PE. Considering market development capabilities, the company is given 23 times PE in 2019, corresponding to a target price of RMB 26 / share, and maintains a “strong push” rating.  Risk reminder: The downturn in the macro economy has led to sluggish demand, and the pattern of the custom furniture industry has undergone major changes.