Dream Lily (603313) 2018 Annual Report Review: Independent Brand Xiao He Shows Sharp Angle, Domestic Sales Can Be Expected in 19 Years
Q4 single quarter revenue growth reached 39.
03%, the profit side increased by 6.
9 times, boosting the expected income appreciation by 30.
39%, non-profit profit increased by 73.
29%, good performance.
2018 initially achieved operating income of 30.
4.9 billion, +30 per year.
39%; net profit attributable to mothers1.
86 trillion, ten years +19.
39%, net profit after deduction to mother 2.
25 trillion, ten years +73.
By quarter, Q1 / Q2 / Q3 / Q4 achieved revenue of 6.
450,000 yuan, +26 a year.
95% / + 19.
55% / + 33.
42% / + 39.
03%, net profit attributable to mother is 0.
760,000 yuan, at least -88.
45% / + 133.
04% / + 691.
49%, net profit after deduction is -0.
9 ‰, -102 per year.
31% / + 31.
85% / + 201.
76% / + 927.
Company revenue increased by 30.39%, non-net profit at the beginning of the year increased by 73.
29% is outstanding.
Due to the 18-year exchange rate fluctuations, the fair value of foreign exchange forward hedging products changed to a certain non-recurring profit and loss. However, the 19-year conversion of raw material prices has remained low, and the company’s long-term trend is still good.
Raw material pressure was released, and gross margin improved quarter by quarter.
The company’s highest gross profit margin is +2 for ten years.
54 pieces to 32.
08%, Q1-4 single season gross profit was 24.
9% / 31.
61% / 32.
72% / 36.
51%, gradually improving quarterly; it is expected that the price of raw materials will remain low and fluctuate in 19 years, overlapping the impact of the gradual increase in the proportion of independent brands, and the gross profit margin is expected to remain room for improvement.
The company period expense rate is -0 per year.
61pcpt to 21.
44%, of which the selling expense ratio is +1.
08pcpts to 13.
15%, overhead rate +0.
21 points to 5.
26%, R & D expenses -0.
51pcpt to 2.
91%, financial expense ratio -1.
39 to 0.
In 18 years, the company strengthened the construction of independent brands, the sales expense ratio increased, and the other three expenses remained stable.
The net interest rate shifted slightly due to exchange rate factors, up to -0.
56pcpts to 6.
1%. Through the expansion of revenue and management, the net interest rate will increase in the future.
The brand matrix continued to upgrade, with the proportion of global independent brands reaching 23.
In 2018, the company’s memory foam mattresses / memory cotton pillows / sofa / electric beds achieved revenue of 16 respectively.
32 ppm, at least +29.
67% / + 5.
11% / + 12.
16% / + 70.
05%, the main product memory foam mattresses continued to grow at a high rate, and the volume of electric bed products increased.
In terms of brand, the company continues to promote OBM transformation. At present, it has established a brand matrix with “Mlily Dream Lily” as its main brand, and raccoon, CR, MAXCLCHON, COMOTEX as its sub-brands.
18 years of the company’s own brand income7.
23 ppm, +42 a year.
01%, the proportion increased by 1.
94pcpts to 23.
In terms of independent brand promotion, the company has almost deepened its cooperation with Manchester United to give full play to the fan effect of Manchester United. It has also continuously improved the global influence of the “Mlily Dream Lily” through upgrading store VI and brand SI, and an exclusive titled album “Chase of Sleep”Efforts to deepen the sustainable layout of the brand.
The number of AIDS in the stores exceeded 100 million, and the channel promotion effect was significant.
Offline direct sales and franchised stores realized revenue1.
01 ten percent, +124.
The company has fully expanded its domestic outlets around the 3-year plan of thousands of stores. After evaluation and optimization by the dealer team, it has gradually opened 34 directly-operated stores, a net increase of 21 to 104; 87 new franchised stores, a net increase of 27 to135.
In addition to fully expanding the number of stores, under the continuous optimization of management, the effectiveness of single-store stores 杭州夜网论坛 has also improved, and the sales of direct-operated stores have increased from 26 in 17 years.
420,000 yuan to 63.
300,000 yuan, the single store pick-up value of the franchise stores from 21.
540,000 yuan to 26.
In addition, the company’s 18-year online sales growth momentum is good, 18 years to achieve revenue2.
63 ppm, +135 for ten years.
With the company’s deepening channel reform, domestic sales in 19 years will enter an explosive period.
Focusing on long-term development, focusing on improving internal management + R & D.
18 years of research and development costs 8884 million / 10% per year, completed 8 research and development projects such as PCM mattresses.
At least the company has 79 authorized patents, including 13 internal invention patents.
Seven products such as “biodegradable slow rebound memory foam” were evaluated as emerging products by the Jiangsu Provincial Department of Science and Technology; hydrogel sponge sponge related technologies won the Nantong Patent Prize.
The company continues to deepen the company’s product strength advantages, strives for excellence in product development, and creates differentiated memory foam products to achieve long-term and stable market competitiveness.
In terms of management, the company continuously optimizes its internal system and launches talent training programs such as the “Falcon Plan” and “Condor Plan” to reserve talents for the company’s long-term development.
Investment suggestion: The company’s products have a long-term reputation, and the proportion of independent brands is constantly increasing. The domestic sales of new products are expected to usher in a strong growth.
It is estimated that the revenue for 2019-2021 will be 40.
3 ‰, +31 a year.
8% / 30.
6% / 30.
0%, net profit is 3 respectively.
02 trillion, +98 a year ago.
8% / 35.
7% / 39.
9%, earnings per share were 1.
90, corresponding PE is 19/14 / 10x respectively, maintaining the “strongly recommended” level.
Risk reminders: the risk of rising raw material prices; less-than-expected capacity release; and the range of RMB exchange rate changes.