Jianlang Hardware (002791): The effect of scale gradually appears and cash flow improves significantly
Event: The company achieved revenue of 35 in the first three quarters of 2019.
75 ppm, an increase of 32 in ten years.
21%; realized net profit attributable to mother 2.
6.9 billion yuan, an annual increase of 129.
94%; EPS is 0.
85 yuan, an increase of 136 per year.
11%; estimated average return on net assets is 9.
59%, an increase of 5.
Comments: 1. In the third quarter, the revenue continued to grow at a high rate. The cultivation of new categories tended to mature and continued growth. This guarantees that the company achieved revenue of 35 in the first three quarters.
75 ppm, an increase of 32 in ten years.
21%, quarterly, Q1-Q3 are 8 respectively.
88 and 14.
86 ppm, an increase of 31 in ten years.
37% vs. 32.
56%. In the third quarter, the long-term revenue growth trend continued. We believe that the traditional traditional door and window hardware business has enjoyed steady growth and continued volume of new products.
In terms of net profit, net profit attributable to mothers was achieved in the first three quarters.
690,000 yuan, an increase of 129 in ten years.
94%, Q1-Q3 are 0 respectively.
12 and 1.
49 ppm, a 123-year increase.
83% vs. 70.
18%, the company’s net profit from the third quarter of last year from a single quarter growth rate from negative to positive, the third quarter growth rate slightly shifted there is a base effect.
I believe that the company’s continuous development of new product categories on the original product categories ensures that the company’s future performance continues to grow.
2. The scale effect was gradually realized, and the sales expense ratio decreased significantly. The cash flow improved significantly in the third quarter.
97% to 40.
29% during the period, the company’s revenue rate in the case of rapid growth in the case of the company’s revenue significantly decreased, compared with the same period last year decreased by 1.
76%, of which the sales expense ratio decreased by 1.
52% to 18.
77%, the management expense rate dropped by 0.
34% to 10.
50%, financial expense ratio rose by 0.
10% to 0.
17%, it is worth noting that the company’s sales expense ratio Q1 to Q3 showed a significant downward trend, and Q3 dropped to 16.81% is the lowest level in the company’s history.
The company’s net margin rose to 7.
40%, we think that the company’s net profit margin can increase with the continuous growth of revenue; the first three quarters of the company’s net cash flow from operating activities was -1.
8.3 billion, an increase of 3 over the same period last year.
1.3 billion, of which Q3 net operating cash flow turned to 2.
11 billion US dollars, the cash flow situation has improved significantly; 杭州夜网 inventory and receivables turnover days decreased, an estimated decrease of 11 in the same period last year.
38 days and 12.
In 26 days, operational efficiency improved.
The company’s return on assets continued to rise to 40.
56%, maintained at a relatively reasonable level. From the perspective of denied subjects, it was mainly due to the increase in bills payable and accounts.
3. Adhere to the strategic positioning of the building concept and accessories integration supplier, and continue to extend the product line. The company develops around the integration of construction hardware products: expand investment in construction projects, maintain capital increase and production expansion of existing advantageous industries; replaceSmart Control Technology makes equity investments, fully integrates the industry’s 杭州桑拿网 internal superior resources, and enhances the industry’s development capabilities through strategic investment; continuously enriches product lines, deploys building energy-saving and green buildings; strategically deploys the smart home and security market; and establishes a new subsidiary, Tianjin Jinpeng GuanIndustry to promote the development of the underground integrated pipe gallery business.
Through the rapid promotion of products, the company currently has a sales team of nearly 4,200 people. Under the direct management system, the company can coordinate and promote the entire sales strategy to ensure high-speed growth of per capita income and ensure continuous growth of company performance.
4. Focus on mid-to-high-end hardware products, build an industrial platform in multiple categories, maintain a “prudent recommendation” rating company as a domestic hardware leader, and build a mid-to-high-end hardware collection platform. Benefit from the increase in the proportion of mid-to-high-end markets and the increase in customer requirements for brands.The company’s market share in the construction hardware industry promotes continuous improvement.
The company has sufficient reserves of sales personnel, focusing on the development of the B-end market, and overlapping product categories. We expect the company’s EPS to be 0 in 2019-2020.
13 yuan, corresponding to PE is 29.
0 and 21.
5 times, maintain the “prudent recommendation” rating.
5. Risk warning: the evolution of the downstream construction industry, the rise in raw material prices, and the receivables repayment is less than expected