Oupai Home (603833): 19-year performance exceeded expectations Q4 improved category expansion and bulk continued to drive
Event On January 15th, Oupai Household announced the announcement of 2019 annual results pre-increasing.
The company expects to achieve operating income of 126 in 2019.
110,000 yuan, a 10-year increase of 10% -20% attributed to the mother’s net profit18.
65 ppm, a 10-year increase of 15% -20%; net profit after deduction is 16.
9.6 billion, a 10-year growth of 10% -20%.
In terms of quarters, it is estimated that the operating income in the single quarter of 2019Q4 will be 31.
7.6 billion, an annual increase of -5.
10%; net profit attributable to mother is 4.
87 ppm, an increase of 15 in ten years.
80%; net profit after deduction is 3.
50,000 yuan, a growth of 0 in ten years.
The company’s performance exceeds market expectations. Our analysis and judgment are driven by the wardrobe + accessory category. Multi-channel efforts are in place. The 2019 performance is in line with expectations of the company’s continued growth in revenue and net profit in 2019.
The company’s revenue growth mainly gradually steadily expanded the company’s new categories, the effective implementation of key categories and brand strategies, and the acceleration of omni-channel operations. Specifically, the company’s custom-made wardrobes and supporting categories in Oupai and Opalli have experienced strong growth and engineering.The performance of channels such as assembly and bag occupation was intensified, and other categories of cabinets, bathrooms, and wooden doors performed steadily.
In terms of profit, the growth of the company’s net profit is mainly due to the company’s informatization and lean production promotion, reform of the layout system, innovation and efficiency improvement, and government subsidy income.
The company’s non-recurring gains and losses are mainly affected by government subsidy income. In 2019, the company received government subsidies2.
11 ppm, a government benefit related to gains of approximately 1 was initially identified.
About 2.8 billion.
The omni-channel construction is accelerating, large home furnishings are being installed, and the engineering business is continuously promoting the company to actively carry out omni-channel construction. The company has the largest terminal sales network in the home industry, and the store sales network consisting of dealer specialty stores and company-owned stores has nearly 7,000 stores.
As of the end of September 2019, the company’s total number of stores was 7,084, a net increase of 376 from the end of 2018, and an increase of 66 from the end of June 2019.
Among them, European-style cabinets (including cabinet clothing comprehensive), European-style wardrobes (independent wardrobes), European-style Penny wooden doors, European-style bathrooms, and European-style bathrooms are respectively 2321, 2182, 953, 618, and 1010, which are 45 more than 2018, 69, 128, 59, 75, of which the number of cabinets, closets and doors 杭州夜网 slightly decreased compared with the end of June 2019.
At the same time, the company actively lays out assembly, bulk channels, and expands customer resources. The company takes the lead in channel conversion in the industry.
The company started a pilot program to promote the large-scale home furnishing business in 2018 with significant results. By the end of September 2019, there were 251 large-scale home furnishing stores.
The bulk channels continue to exert their strength and the growth is strong. In the first half of 2019, the bulk business revenue maintained a growth rate of more than 50%.
The rapid expansion of assembly and bulk channels has become an important driving force for the company’s performance growth.
The expansion of categories continued to advance. The growth of wardrobes and accessory categories 重庆耍耍网 quickly faced new changes in industries such as consumer grading, channel division, and reduction in traditional retail passenger flow. The company adopted different sales strategies for different single products to achieve continuous expansion of new categories and traditional advantage categoriesSteady growth.
In terms of cabinets, in order to meet the requirements of different consumer groups and channels, the package is used as a drainage tool to increase the unit price of the product. The European-style wardrobe adopts multiple measures to reduce the burden on the distributors, promote product sales throughout the house, and continuously increase the proportion of furniture accessoriesIn comparison, the terminal unit price will be increased, and the hardcover room baggage plan will be actively promoted.
In terms of wooden doors and bathrooms, the company created a full-scale, multi-level package matrix of “whole house drainage package-main push package-quality package”, using package differentiation to enhance store drainage.
The company gradually achieved cabinet income stability through more steps, and new categories such as wardrobes and accessories grew rapidly.In the first three quarters of 2019, cabinets achieved revenue of 44.
9.6 billion, ten years +6.
19%; the closet realized income of 35.
05 ten percent, +21.
27%; bathroom realized income 4.
400,000 yuan, +43 a year.
30%; wooden door realized income4.
13 trillion, +37 a year.
37%; other income 5.
42 trillion, +80 ten years ago.
Investment suggestion: We expect the company’s operating income in 2019-2021 to be 134.
7.4 billion, an increase of 17 each year.
38%; net profit attributable to mothers is 18.
6.7 billion, an increase of 20 each year.
28%, corresponding to P / E of 27.
2 x, maintain “Buy” rating.
Risk factors: expansion of real estate sales; increased competition in the industry; rising raw material costs.