Jiuyang shares (002242): Q3 growth momentum continues the future space is expected
Recently, the company disclosed the 2019 third quarter report: revenue, return to mother, deduction 62.
55 billion, 6.
18 billion, 5.
83 billion, +15 a year.
20%; corresponding to 2019Q3: income, return to mother, deduct 20.
6.8 billion, 2.
12 billion, 2.
5.0 billion, previously +14.
98%, + 6.
68%; revenue performance was in line with expectations.
I. Revenue analysis: Product R & D innovation, improved channel efficiency, accelerated export orders, and growth in 2019Q1-3 revenue62.
55 trillion, +15 for ten years.
02%; 2019Q3 revenue of 20.
68 ppm, ten years +14.
Product R & D innovation, improved channel efficiency, accelerated export orders, and the three aspects jointly led to the rapid growth of Jiuyang’s revenue.
In terms of products, the company actively researches and develops new products. In the first half of the year, it launched self-cleaning broken wall soymilk machine K1S, K mini soymilk machine, Ksolo soymilk machine, and uncoated steam rice cooker S5.
In the third quarter, the company launched new models with initial advantages based on new categories, such as the hands-free wall-breaking machine Y1 and the steam rice cooker S3.
In terms of channels, the company focused on promoting channel transformation and upgrading, building high-end commercial complex stores such as shopping malls, and promoting the volume of mid-to-high-end products; upgrading and remodeling of brand stores to optimize the consumer experience; testing new retail at the same time, and cooperating with Alibaba on “one-stock”Mode to reduce the cost of goods circulation.
In terms of export, the company is 杭州夜网 good at excellent domestic supply chain management capabilities and can quickly accept orders from shark ninjas.
It is expected that future product innovation, improved channel efficiency and accelerated export sales will continue ahead of schedule, driving the company’s stable growth.
2. Profit analysis: The gross profit margin increased slightly, and the sales expense ratio further improved the gross profit margin: 2019Q1-3 was 32.
34%, -0 per year.
2019Q3 is 32.
35%, ten years +1.
In general, the company’s gross profit margin has been stable at about 32% for a long time, and its ability to control operating costs is very strong.
Expense ratio: 2019Q1-3 Sales, management and period total expenses14.
65%, twice -2.
26 points.Q3 single season 南京桑拿网 sales, management and period total expenses13.
07%, -0 per year.
91 points, +1.
The decline in the sales expense ratio stemmed from the fact that the World Cup promotional expenses deposited in the same period of the past year can be driven by the improvement of efficiency after the adjustment of the channel is completed.
The increase in management expense ratio was mainly due to the increase in management staff salaries, travel expenses and equity incentive amortization.
Net margin: 2019Q1-3 is 9.
71% for a year -0.
69pct to; 2019Q3 is 10.
04%, -0 per year.
Combined with historical net interest rate data, this value falls within a reasonable range of fluctuations.
The company’s export sales are not due to the ODM order acceptance and the gross profit margin has been slightly lowered but the net profit rate has increased. In the future, export orders are expected to maintain double growth and continue to contribute to EPS growth; the expense ratio will continue to improve with the expansion of revenue and efficiency; plus ShangkeNingjia (China) has integrated and advanced. In the first half of the year, handheld vacuum cleaners and steam mops have performed well in the cleaning field, and they are expected to turn a profit in the future.
Together, the overall profitability has risen steadily.
3. Cash flow analysis: accounts receivable, the proportion of payables increased, and operating cash flow soared at the end of the period7.
0.8 billion, previously +21.
65%; accounts receivable 4.
81 trillion, ten years +114.
73%; payable 18.
45 billion, previously +91.
Net cash flow from operating activities in Q1-3 20199.
2.2 billion, previously +120.
There are three reasons for the increase in inventory: (1) Complying with e-commerce enterprise regulations and stocking in order to cater for large-scale e-commerce activities at the end of the year; (2) SharkNinja related orders require the company to stock up in advance; (3) Cooperation with Ali “one stock” to change the inventory model.
The increase in accounts receivable was mainly due to the increase in income; the increase in payables caused by the supply of bills payable by supply chain finance; the increase in net cash flow from operating activities was mainly related to the surge in cash received from sales of goods and the provision of labor services, while the net cashReduced project growth is limited.
It is expected that the cash flow situation in the fourth quarter will gradually improve with the cooperation, and the efficiency of the supply chain and channel efficiency will gradually improve.
4. Prospects: From R & D collaboration to supply chain integration, the space can be expected to look to the future. The biggest highlight of Jiuyang Co., Ltd. is that the Shark brand household cleaning and western kitchen appliances are dating to China, and SharkNinja continues to increase ODM order transferThe considerable increase brought by the company can be expected to continue rapid growth!
This article estimates that the income for the years 19-21 will be 89.
2.5 billion, 99.
31 ppm and 113.
42 trillion, net profit attributable to mother is 9.
04 billion, 10.
6.7 billion and 12.
70 ppm, currently corresponding to PE18x, 15x, 13x; maintain “Buy” level.
Risk reminder: New products are less than expected risks, industry competition intensifies risks, and raw material costs rise