Zhejiang Meida (002677): Improving profitability, short-term revenue growth rate breakdown does not change company growth value

Zhejiang Meida (002677): Improving profitability, short-term revenue growth rate breakdown does not change company growth value

The company released the 2019 annual performance forecast and reported that the combined company realized operating income16.

90 ppm, an increase of 20 in ten years.

63%; net profit attributable to mothers4.

62 ppm, an increase of 22 in ten years.

30%.

Based on this, it is estimated that the company will achieve revenue 5 in 2019Q4.

48 ppm, 天津夜网 an increase of 17 in ten years.

14%; net profit attributable to mothers1.

570,000 yuan, an increase of 20 in ten years.

75%, performance growth faster than revenue growth.

  [Comment]As a leader, the company enjoys the growth dividend of the industry.

According to the total forecast data of Aowei Cloud Network, the retail sales of integrated stoves in 2019 will reach 16 billion US dollars, an annual increase of 30.

1%, retail volume 212.

50,000 units, an increase of 14% per year, the average market price is expected to increase by 14% per year, citing the traditional kitchen appliance industry, whose growth rate has been gradually increasing year by year, the integrated stove industry has continued its rapid growth in recent years in 2019, and presents volume and priceQi Sheng’s development trend.

With the 杭州桑拿 improvement of the penetration rate of fine decoration in the country, the current rate of fine decoration decoration for integrated stoves is still at a relatively low level, with a matching rate of less than 100,000 units, but the growth rate in the fine decoration market in 2019 will reach 28.

9%, second only to the dishwasher. In the future, with the expected increase in the supporting rate, the market for integrated stoves and fine decoration will further increase.

In addition, the entry of bosses such as Midea and other leading brands has also promoted the overall trend of the industry. We believe that the integrated stove industry will continue to grow relatively rapidly in the future driven by the increase in the industry penetration rate and the rate of fine decoration facilities. The company as a leading enterprise marketWith a share of more than 30%, it is expected to take the lead in enjoying industry growth dividends.

  The level of profitability improved, and the marketing strategy continued to deepen.

In 2019, the company’s net profit attributable to its parent was 27.

32% at least 2018 (26.

95%) increase by 0.

37pct, of which the net profit attributable to the parent in 2019Q4 reached 28.

70%, at least 2018Q4 increased by 1.

75pct, single quarter profitability increased significantly.

We believe that benefiting from the cost benefits brought by the company’s efficient production and cost reduction and the reduction of tax rates, the transformation of the retail end is affected by the upgrade of the product structure. The increase in the proportion of high gross margin products drives the average price upward, and the remaining gross margin in the fourth quarter is expected.A certain degree of thickening.

In terms of expenses, we believe that the company will continue to maintain a high-profile strategy in marketing in 2019, steadily promote the layout of the KA channel, and the material sales expense rate will rise in line with the gross profit margin.

  The slowdown in short-term revenue growth does not change the company’s growth value.

We are still optimistic about the growth logic of the increase of the track penetration rate of integrated stoves and the improvement of the rate of fine decoration facilities. Taking into account the intensification of the current industry competition and the effect of the previous base, alternating short-term epidemic resumption of labor, the growth rate of revenue in the next few years is expected to change.However, product structure optimization and cost reduction and efficiency improvement will be the company’s long-term strategy. The trend of increasing profits is obvious. We revised the company’s revenue for 19/20/21 and raised the net profit attributable to mothers and the sales expense ratio for 19/20/21.It is estimated that the company’s total operating income for 19/20/21 will be 16.

90/20.

51/25.

01 billion, net profit attributable to mother is 4.

62/5.

66/6.

9.3 billion yuan, EPS 0.

71/0.

88/1.

07 yuan, corresponding to PE 17/14/11 times, maintain “Buy” rating.

  [Risk Tips]The real estate boom is further down; KA channel construction is less than expected; industry competition is intensifying.

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