Baby Room (603214) 2019 First Quarterly Report Review: E-commerce business growth has improved faster than the gross profit margin

[Investment Highlights]Baby-friendly Room released the first quarter report of 2019.

At the core of the report, the company achieved operating income5.

$ 4.5 billion, an annual increase of 13.

21%; Net profit attributable to shareholders of listed companies is 0.

180,000 yuan, an increase of 46 in ten years.


E-commerce revenue grew rapidly, and offline store revenue grew steadily.

In the first quarter, the company’s e-commerce business continued its high growth momentum, with a year-on-year growth rate of 84.

18%, the income share also increased compared to the 18 years.

In the total number of reports, six offline stores were opened and five closed, reaching 224 stores at the end of the first quarter, and the overall sales revenue of the stores increased.


In terms of categories, the revenue of food and milk powder increased, while that of lathes decreased.

In terms of different regions, Shanghai’s revenue accounted for more than 50%, and Zhejiang’s revenue grew faster. With reference to 2018, the revenue share increased by about 2%.

The gross profit margin increased during the period, and the net profit margin increased.

The company’s gross profit index in the first quarter increased by 1 last year.

The 32 averages are mainly the increase in gross profit margin of milk powder, food, and toy products.

In terms of expense ratio, each increase of 3 units in sales expense ratio is mainly due to the increase in housing and property expenses of new stores and labor costs.

The decrease in financial expenses was mainly due to the increase in interest income and the overall expense ratio increased by approximately 1 percentage point during the first quarter.

In addition, the investment income obtained by the company’s purchase of wealth management products increased in the current period. Overall, the company’s net interest rate increased by 0.

8 points.

[Investment suggestion]In 2019, the company plans to open 50-60 new direct-operated stores with overlapping M & A projects. It is trying to promote the continuous growth of revenue scale, optimization of product mix, the creation of private brands and the increase of direct-supply brands.It is expected to further improve the company’s gross profit level. Therefore, we raise our profit forecast and expect the company’s 19/20/21 revenue to be 25.



470,000 yuan, net profit attributed to the mother1.



02 trillion, EPS 1.



02 yuan, corresponding to PE29.



23 times, maintaining the “overweight” 青岛夜网 level.

[Risk reminder]The macroeconomic environment is sluggish; the speed and quality of the company’s exhibitions are worse than expected.