Yuanzu Shares (603886) 2019 Interim Report: Results Meet Expectations Steady Expansion of Stores
Performance was in line with expectations, and price increases drove gross profit margins for 2019H1 revenue8.
3.3 billion (+15.
24%), net profit attributable to mother 0.
36 billion (+36.
13%), of which 19Q2 revenue was 4.
92 billion (+10.
03%), net profit attributable to mother 0.
4.2 billion (-20.
96%), performance growth fluctuates, and performance is in line with expectations.
19H1 gross profit margin 64.
78pcts), with a gross profit margin of 63 in 19Q2.
49pcts), mainly due to the company’s April price increase for cakes and fruit gift boxes.
19H1 net profit 4.
82pcts), of which 19Q2 net interest rate is 8.
85 pcts), mainly due to the increase in gross profit margin and the decrease in management expense ratio1.
07pct, taxes and surcharges dropped by 0.
33pcts, the sales expense ratio rose by 0.
55pcs and so on.
2019H1 operating cash flow 0.
7.9 billion (-39.
78 %%), which was mainly due to the increase in material payment and labor cost paid during the Mid-Autumn Festival.
2019H1 advance payment 0.
4.2 billion, an increase of 19.
92%, mainly due to the increase in advance payment of materials for the Mid-Autumn Festival.
2019H1 inventory 0.
5.5 billion, an increase of 46.
38%, mainly due to the increase in stocking of materials for Mid-Autumn Festival.
The proportion of direct sales is stable, and the stores are steadily expanding. From the product point of view, the company’s main business is outstanding, and the cake’s 2019H1 revenue is 2.
8.3 billion (+8.
48%), the growth rate due to price increases in the second quarter has improved, and normal growth is expected to resume in the fourth quarter; Chinese and Western-style confectionery revenue in 2019H14.
6.5 billion (+14.
06%), fruit 2019H1 revenue is 0.
3.7 billion (+14.
98%), both maintained steady growth.
From the perspective of channels, the company’s direct sales accounted for more than 88%, and its 2019 H1 revenue was 7.
2.0 billion (+11.
From a regional perspective, the company’s revenue is basically from mainland China, and its 2019H1 revenue is 7.
9.3 billion (+11.
In terms of stores, the company’s stores increased from 631 in 2018 to 642 in 2019H1, a net increase of 11 stores.
We expect the company’s stores to exceed 650 in 2019.
Increasing performance such as price increases, both 都市夜网 online and offline into the second half of the year, we believe the company will continue to benefit from: 1) price increases for cakes and fruit gift boxes; 2) carry-over income from sleep cards; 3) peak season for moon cake sales (generally single three) Quarterly revenue accounts for about 40% and profits account for about 90%).
The company’s performance in the second half of the year is generally better than that in the first half. The company has adjusted product structure and strategic layout to reduce changes in earnings performance.
Offline channels, opening up channel networks in first- and second-tier cities, steadily and meticulously operating; online channels, using self-built official websites, micro malls, various e-commerce platforms to conduct customer drainage, online transactions, strengthen effective management 杭州夜网论坛 of stores, and achieve onlineUp and down integration.
The investment proposal maintains EPS 1 for 2019-2021.
67 yuan, corresponding to PE18 / 15/13, maintain “Buy” rating.
Risk warnings on food safety issues; growth of raw materials; lower-than-expected price increases for core products;