Zhibang Home Furnishing (603801): Cabinet retail growth is under pressure and major businesses are expected to increase volume after adjustment
Event: The company released the 2018 annual report: operating income in 201824.
33 ppm, an increase of 12 in ten years.
80%, net profit attributable to mother 2.
73 ppm, an increase of 16 in ten years.
51%, deducting non-net profit 2.
53 ppm, an increase of 12 in ten years.
The company distributed 8 for every 10 shares in 2018.
6 yuan (including tax), the capital reserve will be transferred to all shareholders 4 shares for every 10 shares, the basic income1.
In terms of cash flow, cash received from selling goods and providing services in 201827.
71 ppm, a ten-year increase of 8.
58%, net cash flow from operating activities3.
70 ppm, a reduction of 6 per year.
The company released the 2019 first quarter report: the first quarter of 2019 achieved operating income4.
14 ppm, a five-year increase of 5.
20%, net profit attributable to mother 0.
32 ppm, a ten-year increase4.
91%, deducting non-net profit of 0.
25 ppm, a reduction of 5 per year.
In terms of cash flow, cash received from sales of goods and provision of labor services in the first quarter of 20193.
16 trillion, a reduction of 7 a year.
85%, a net replacement of cash flows from operating activities.
Opinion: In terms of quarters, the company achieved operating income of Q1 / Q2 / Q3 / Q4 in each quarter of 20183.
990,000 yuan, an annual increase of 38.
28% / 19.
10% / 5.
53% / 4.
00%, net profit Q1 / Q2 / Q3 / Q4 attributable to mother is 0 in a single quarter.
09/0.69 ppm, an increase of 48 in ten years.
23% / 47.
21% / 20.
The company’s single fourth quarter profit limit.
In terms of categories, the 2018 cabinet revenue was 19.
280,000 yuan (+2 compared with the same period last year).
74%), of which 14.
230,000 yuan (+0 compared to the same period last year).
24%), Bulk 3.
910,000 yuan (yoy-1.
3%), export 1.
140,000 yuan (+87 compared with the same period last year).
26%), wardrobe revenue of 4.
30,000 yuan (+91 compared with the same period last year).
62%), wooden door 778.
2019Q1 cabinet revenue 3.
1.5 billion (yoy-5%), of which retail 2.
160,000 yuan (compared with 21.
31%), bulk 0.
8.7 billion (+ 114% year-on-year), exports 0.
1.2 billion (yoy-27%), the first quarter of 2019 wardrobe revenue is zero.
9.5 billion (55% yoy), wooden door revenue of 0.
4.0 billion (+ 100% year-on-year).
In terms of different channels, 2018 distribution revenue17.
4.0 billion (+14 compared to the same period last year).
82), direct sales income 1.
5.7 billion (yoy-1.
99%), bulk income 3.
910,000 yuan (yoy-1.
3%), export 1.
140,000 yuan (+87 compared with the 北京养生会所 same period last year).
2019Q1 distribution income 2.
8.6 billion (yoy-7%), direct sales income 0.
2.5 billion (-14% year-on-year) and zero block revenue.
8.7 billion (yoy + 114), exports 0.
1.2 billion (-27% year-on-year). Profitability increased steadily, and the expense ratio increased slightly during the period.
The company’s gross profit margin in 2018 was 35.
96%, an increase of 1 per year.
06pct, net interest rate 11.
22%, an annual increase of 0.
36pct, sales / management / R & D / financial expense ratios are 13 respectively.
72% / 5.
78% / 3.
71%, with a change of 0 every year.
72 / -0.
75pct, the increase in management expenses is mainly caused by the increase in the scale of development. The increase in the number of employees leads to increased expenditures and increased management consulting investment. The increase in R & D expenses is mainly due to the increase in R & D investment.
The company’s gross profit margin in the first quarter of 2019 was 37.
92%, an annual increase of 1.
11pct, net interest rate 7.
64%, zero for one year.
02pct, Q1 single season sales / management / R & D / financial expense ratios are 19 respectively.
68% / 7.
60% / 3.
71% / 0.
22%, which changes by 2 each year last year.
92 / -0.
32 / -0.
15pct, the increase in sales expenses was mainly due to the increase in sales scale and the increase in personnel required to develop new businesses, while increasing market investment.
Cabinet: Constantly develop new products and consolidate the basis of cabinets.
The company’s overall cabinet revenue in 2018 was 19.
28 ppm, a ten-year increase2.
74%, gross margin 38.
32%, an increase of 1 each year.
The cabinet business has now formed six major product series. As of the end of 2018, the cabinet business has more than 1,220 dealers and 1,487 specialty stores.
Wardrobe: The whole house is customized, and the wardrobe business is growing rapidly.
In August 2018, the company shifted from the overall kitchen and custom wardrobe to the whole house customization, from a single category to the whole house customization, and from a single space to eight major spaces.
The company’s custom wardrobe revenue in 20184.
30 ppm, an increase of 91 in ten years.
62%, gross profit margin 29.
97%, an increase of 4 per year.15 marks.
As of the end of 2018, there were 595 dealers for custom wardrobes, of which about 80% were custom dealers for the whole house, and there were 726 specialty stores.
IK Whole House Customized 2018 Revenue 0.
350,000 yuan, an increase of 38 in ten years.
23%, gross margin 32.
6%, a decrease of 7 per year.
59pct, as of the end of 2018, there are 33 specialty stores for IK whole house customization.
Wooden door: Incubate wooden door business and contribute to performance increase.
The company’s wooden doors achieved revenue of 778 in 2018.
510,000 yuan, gross profit margin -56.
As of the end of 2018, there were 117 Zhibang wooden door distributors, and 88 stores with other categories of Zhibang.
The company’s wooden door business is incubating. It is expected that in the future, it will be possible to achieve cabinet-clothing-wood linkage to expand the whole house’s custom home category.
The construction of retail stores continued to advance, and the customer structure of bulk business was optimized.
In terms of physical stores, the company plans to open 150 new cabinet stores in 2019, while focusing on optimizing and renovating old stores; opening 100 new wooden door stores, integrating wooden door products with Zhibang cabinets and custom-made stores throughout the house;There are 350 wardrobes and whole-house customized stores, perfecting the urban layout below the third tier.
In terms of bulk business, in 2018, the company focused on optimizing the structure of domestic bulk customers and improving bulk profitability. Among the existing customers of the bulk engineering business, most of them are top 100 real estate companies, main board listed companies and regional leading real estate companies, and top 100Real estate clients accounted for 30%, of which the top 10 accounted for 50% and the top 20 accounted for 60%.
Innovate the Australian IJF equity cooperation model and develop the export business rapidly.
Export revenue of the company in 20181.
14 ppm, an increase of 87 in ten years.
26%, gross margin 26.
45%, an increase of 9 per year.
13pct, 2019Q1 foreign trade revenue is 0.
1.2 billion, a year-on-year decrease of 27%.
The company innovated the Australian IJF equity cooperation model, which greatly promoted the development of Australian business, while nurturing the improvement of the domestic business level. In 2018, the sales of goods through IJF increased by 167%.
Establish a project group for the American market, and plan to set up a subsidiary to realize the localization of warehouse exhibition halls, serve customers close to the market, and explore development paths.
We expect the company’s EPS to be 1 in 2019-2020.
38 yuan, corresponding to 16 PE for 2019-2020.
66 times, considering the company’s entire category, multi-brand layout breeds new revenue growth points, it is estimated to be cheap, and maintain a “buy” rating.
Risk warning: The real estate boom is lower than expected, and business promotion is lower than expected.