杭州桑拿按摩

Zhibang Furnishing (603801): Achieving the expected synergy between cabinet and wood

Event: The company announced the first quarter report of 2019 and achieved operating income in the first quarter4.

1.4 billion, an annual increase of 5.

20%; net profit attributable to mother 3163.

杭州夜网 330,000, an annual increase of 4.

91%; non-net profit deducted by 5 in ten years.

93%.

Comments: 1. Q1’s revenue increased steadily and slightly. The business volume of 19 years is expected to be qualitative, and the volume will rise. In the first quarter, due to the advance of the Spring Festival, the overall prosperity of the household industry is still weak, and the company’s revenue has achieved steady growth.

Among them, we estimate that the high growth of the wardrobe business continues, and the low base of wooden doors has developed rapidly. After 18 years of customer structure adjustments in the bulk business, it is expected that the proportion of Q1 bulk will increase (18% of revenue in 18%).

The balance of accounts receivable and bills receivable at the end of the first quarter.

400 million US dollars, a slight decrease of 4% from the beginning. We believe that the company’s engineering business structure was adjusted in place in 19 and gradually achieved qualitative and quantitative rise.

In 19, the company plans to add 150, 350, and 100 cabinets to cabinets and clothes.

Q1 Net cash flow from operating activities increased by 19.
.

7%.

2. The gross profit margin increased slightly, the selling expenses increased, and the net profit margin stabilized. The comprehensive gross profit margin of Q1 was 37.

92%, increase by 1 every year.

11pct, we believe that through the company’s wardrobe in 19, the scale of the wooden door business will further expand, and the profit optimization of bulk business will still contribute to the overall gross profit margin.

In terms of expenses, the first quarter sales, management + research and development, and financial expense ratios changed +2 respectively.

79pct, +0.

6pct, -0.

15pct. In the first quarter, the sales expenses increased due to marketing. The slightly increased management expense ratio was mainly due to the expansion of R & D and informatization construction. In 19 years, the company further strengthened its expense management and control. It is expected that the expense ratio as a whole can still be controlled.

Q1 net profit 7.

64%, basically stable for one year; the increase in investment income makes the growth rate of deducted non-net profit lower than the net profit of returning mothers.

3. The coordinated development effect of cabinet wood is gradually showing, maintaining the “strong recommendation-A” level.

Continue to be optimistic about the company’s “1 + 1 + 4” development strategy of “big customization + leading design + strong terminal, supply chain, digitalization, and talent”: 1) Category expansion, kitchen clothes, wood linkage, whole house customization to increase customer unit price, and gradually form scaleDriven; 2) Channel expansion, excellent structure, quality, and exploration of assembly and Internet home improvement channels; 3) Equity 苏州桑拿网cooperation model started with internal incentives in place; 4) Invested in Australian kitchen cabinet manufacturer IJF to open the chapter of overseas investment.

Expected 2019?
The net profit attributable to mothers will be 3 in 2021.

2.1 billion, 3.

8.7 billion, 4.

47 trillion US dollars, an annual increase of 17%, 21%, 16%, currently corresponding to 19 years of PE is 16x, maintaining the “strongly recommended-A” rating.

Risk warning: industry competition is intensifying, and real estate sales fall short of expectations.