Jiangshan Oupai (603208) Company Comments: Significant increase in engineering performance channels
Event: Jiangshan Oupai released the 2019 performance report: The company expects to achieve sales revenue of 20 in 2019.
300 million, an annual increase of 58%; net profit attributable to mothers2.
64 ppm, a 72-year increase of 72.
98%; realized non-net profit 2
32 ppm, an increase of 88 in ten years.
It is expected to achieve sales revenue for the fourth quarter of 20196.
920,000 yuan, an increase of 64% in ten years;
84 ‰, an increase of 87% in ten years; net profit after deduction is 0.
8.6 billion, an increase of 187% in ten years.
The rapid growth of overall profit was mainly due to the increase in sales of customers from engineering channels.
The performance is beautiful and the profit growth rate exceeds expectations.
The company’s overall performance is beautiful, 1) Q4 revenue growth trend remains unchanged.
Among them, the quarterly revenue growth rate of 19Q1 / Q2 / Q3 / Q4 companies was 22% / 74% / 59% / 64% respectively; Q4 continued to grow rapidly.
2) Accelerated profit growth.
The initial net profit attributable to mothers increased by 73% each year; the net profit in the fourth quarter increased by 87%, a further acceleration from the first three quarters, and the profit growth exceeded expectations.
3) Significant volume of engineering channels.
In terms of different channels, the company’s engineering channel growth rate was higher than the overall growth rate in the first three quarters. The engineering channel revenue increased by more than 70% in the third quarter alone. The retail channel has improved, and the engineering channel has become the core driving force for revenue growth.
Profitability continued to improve and cash flow improved.
1) Profitability is improving: In 2019, the net interest rate will be 13% per year, which will increase by 1.
41pct, of which the net interest rate in the single quarter of 19Q4 was 12.
1%, an annual increase of 2.
2) Gross profit margin increased sequentially: The gross profit margin for the first three quarters of 2019 was 33.
00%, decrease by 1 every year.
19pct, of which 19Q3 single quarter gross margin was 35.
33%, an annual increase of 0.
The improvement in gross profit margin was due to price repairs in the third quarter, lower raw material costs, and reduced fixed costs due to economies of scale.
3) Cash flow: The net cash flow from operating activities in the first three quarters of 2019 was 1.
110,000 yuan, an increase of 20 in ten years.
53%, 深圳养生会所 which was mainly due to the increase in the return deposit due to maturity of bank acceptance bills and the increase in the repayment rate at the sales end.
Capacity expansion was smooth and production efficiency continued to be optimized.
1) The construction of the “1.2 million sets of wooden door project per year” has been completed, the project is being completed and the production line layout is expected to be completed by the end of 2020; 2) “600,000 sets of composite door project per year in Lankao” has been put into operation, and the release of production capacity guarantees the engineering businessHeavy volume.
Under the high prosperity of the industry, the engineering channels continued to increase, the core real estate developers were deeply bound, and strategic cooperation guaranteed future growth.
1) High 上海夜网论坛 industry prosperity is sustainable.
According to the requirements of the “Thirteenth Five-Year Plan” for the development of the construction industry, by 2020, the number of hard-furnished homes will reach 30% each year. At present, the hardcover rate of head real estate companies such as Country Garden will reach 80%.The increase in the proportion of hardcover houses is conducive to the continuous heavy volume of the company’s engineering channels.
Looking forward to 2020, the completion of the recovery and the penetration rate will increase, and the hardcover housing industry chain will maintain a high prosperity, and Jiangpai Europe will continue to benefit.2) Broad space for customer expansion.
At present, the company has cooperated with diversified leading real estate developers such as Evergrande, Poly and Vanke.
According to the “Strategic Cooperation Framework Agreement”, Evergrande promised to purchase a large amount of 1 billion from Jiangshan Oupai in 2017-2019, and the total intentional purchase in 2017-2021 was about 2 billion US dollars, and future core customer orders were guaranteed.
At present, the company has a large number of large customers of engineering business cooperation, and new customers have expanded and continuous space.
Investment suggestion: The company’s new customers are developing smoothly and the industry maintains a high degree of prosperity. We increase the company’s sales revenue for 2019-2021 to 20.
700 million, an annual increase of 58%, 39%, 26%, achieving net profit attributable to mothers2.
68 ppm, an increase of 73%, 40%, and 26% per year (net profit before adjustment is 2 respectively.
30,000 yuan, a year-on-year increase of 32%, 25%, 20%), corresponding to an EPS of 3.
78 yuan, the company expects to further expand the engineering business, driving steady growth in performance, a “buy” rating.
Risk warning: the risk of rising raw material prices, the real estate boom significantly reduces the risk.