Jiuyang Shares (002242): Revenue maintains good growth and business trend continues to rise

Jiuyang Shares (002242): Revenue maintains good growth and business trend continues to rise

Revenue continued to grow well The company achieved total operating revenue in the first three quarters of 201962.

500 million (+15 compared with the same period last year).

0%), gross profit is 20.

200 million (+14 compared to the same period last year).

8%), gross profit margin 32.

3% (YoY-0.

1pc), net profit attributable to mother 6.

200 million (+8 year-on-year.

5%), net interest rate 9.

9% (YoY-0.

6pct), deducting non-attributed net profit 5.

800 million (+ 25% year-on-year.

2%).

Q3 single quarter total operating income 20.

700 million (+15 compared with the same period last year).

0%), gross profit 6.

700 million (+19 year-on-year.

5%), gross margin of 32.

3% (+ 1% year-on-year.

2 pct), net profit attributable to mother 2.

10,000 yuan (+6 compared with the same period last year).

4%) and a net interest rate of 10.

2% (YoY-0.

8pct), deduct non-attributed net profit 2.

10,000 yuan (+18 compared with the same period last year).

7%).

Q3 revenue maintained a good growth and gross margin increased by 1.

2pct, the overall expense ratio has decreased, so the net profit of non-attributed mothers has previously increased faster than income.

However, due to the decrease in Q3 investment income and asset disposal income, and non-recurring gains such as increased donations, the net profit after deduction is faster than the net profit attributable to mothers.

Product power and channel power continue to improve, and the operating conditions continue 四川耍耍网 to improve. In the short term: the company’s product side, the channel side continues to optimize, revenue and profit continue to maintain a good growth, specifically: 1) product power: the company’s product innovation capacity is reduced, preliminaryThe product structure has been continuously optimized, and the multi-category strategy has been very effective. The company’s new mute wall-breaking machine, rice cooker, etc. have responded well in the market.

2) Channel power: After offline dealer adjustments, store upgrades, channel power upgrades, continued expansion of brand stores, and gradually established a three-dimensional channel structure.

In the long run, domestic sales, as the leader in the small home appliance industry, the company’s market share is expected to continue to increase in the future. At the same time, the company has good incentives and long-term development is worth looking forward to.We expect that the number of related party transactions will continue to increase in the future, and export sales are expected to achieve rapid growth.

Basic assumptions for profit forecast of investment advice: We expect that the concentration of the small home appliance industry will continue to increase. Based on this, we predict that the company’s net profit attributable to its mothers will be 8 in 2019-2021.

2, 9.

4, 10.

6 ppm, an increase of 8 per year.

4%, 15.

3%, 12.6%, the latest closing price corresponds to an estimated 17 in 2020.

1xPE.

As a small appliance innovation leader, the company has continued to improve its channel power and product strength, and its performance has maintained a good growth. With reference to the average PE valuation of small appliances companies in 2020, it is given 20xPE in 2020, corresponding to a reasonable value of 24.

6 yuan / share, maintain “Buy” rating.

Risk reminder: New product promotion exceeds expectations; raw material prices are rising; industry competition is intensifying; consumption upgrade trend is gradually increasing; average price increase speed indicator; company promotion investment is too large.