Gujia Household (603816) Annual Report Comments: Performance Meets Expectations, Actively Transforms, Moves to Big Home Brand Retailer
Incident Description The company released its annual report, which achieved revenue / net profit attributable to non-net profit / deduction of non-net profit 91 in 2018.72/9.89/8.180,000 yuan, an increase of 37 in ten years.61% / 20.29% / 34.05%; in a single quarter, realized revenue / net profit attributable to mother / non-net profit 27.79/2.04/1.810,000 yuan, an increase of 52 in ten years.91% / 0.68% / 33.29%; the company intends to use capital provident fund to all shareholders to increase 4 shares for every 10 shares and pay a cash dividend of RMB10.00 yuan (including tax), the amount of cash dividends accounted for 43 of the net profit attributed to the mother.47%. Incident Review Revenue: Endogenous and solid growth, co-existing outbound mergers and acquisitions, driving high revenue growth.In 2018, the company’s revenue increased by 37.61%, of which the company’s consolidated revenue is about 9.190,000 yuan, contributing 13.8pc’s revenue growth, endogenous revenue growth23.8%.Of the income brought by the consolidation, the revenues of Rolf Benz and RB Management are consolidated in Table 3.1.5 billion, priority household income and Table 3.1 ppm is the major company contributing revenue increase.The company’s endogenous growth can expand channels, and increase the efficiency of multiple categories and stores to achieve growth.Single Q4, revenue reached 52.The growth rate was 91%, which was an increase of about 18 pct from the previous quarter. The addition of Q4 and consolidated Cavan Home and Xibao Home contributed some of the revenue growth. 1) Sub-brand: The brand matrix is gradually improved.The company’s own brands / other brands achieved revenue 73.61/13.4.8 billion, accounting for 80% of total revenue.26% / 14.70%, income increased by 20.7% / 683.8%, of which other brands mainly achieved high growth through acquisition and consolidation.In 2018, the company improved the company’s horizontal product category matrix and vertical brand matrix through the acquisition of RolfBenz, Natuz, Xibao Home Furnishing, and Banqi, etc., and gradually built its large home product matrix. 2) Domestic and foreign sales: domestic sales channels are diversified, and national strategies and key customer strategies for export are significant.The company’s domestic sales / exports accounted for 56 of the total revenue.8% / 38.2%, including domestic sales or through multiple channels (furniture stores, appliance stores, Suning retail cloud, department stores, etc.), multi-format (large stores, flagship stores, fusion stores, and bag check-in stores, etc.) and store efficiency improvement, etc., revenue is realized29.1% growth.The company’s domestic sales are mainly retail. In 2018, the company’s direct sales / distributors added 19/937 stores. The growth rate of the stores was about 10% / 30%. The new stores contributed part of the revenue. At the same time, the new stores have a certain maturityWe think 佛山桑拿网 that after excluding consolidated revenue, there may be a certain increase in same-store sales; export sales have achieved 56 through national strategies, key customer strategies, and consolidation.7% revenue growth. 3) Product categories: The core categories are growing steadily, and multiple categories are synergistically achieving high growth.The company’s sofa / bed products are still the main products, accounting for about 56% / 12% of revenue, of which sofa revenue increased by about 39.3%. Considering Rolf Benz and RB Management, Natuz’s main products are sofas and priority home or some sofa products. The high growth of sofas may deviate from the steady endogenous growth of multiple sofas and the contribution of the merger and acquisition of corporate income;Consolidated part of the income of such products may be reduced 南宁桑拿 or reduced (mainly Xibao Home Furnishing), and its revenue will grow steadily (the revenue growth rate is 27).8%) or mainly endogenous.The company’s custom furniture / mahogany furniture / information technology services / supporting products revenue increased by 145.8% / 40.1% / 90.8% / 32.1%, the growth rate is relatively high, of which custom-made furniture through the independent brand and Banrchi brand products to achieve high growth, Banrch consolidated income of about 0.7.8 billion, about 91pc of custom furniture revenue growth rate, we can see that custom endogenous income also achieved high growth. Profit side: The profitability of the endogenous business increased slightly, and the extension only contributed to increase profits.In 2018, the company’s net profit / deducted non-net profit increased by 20.29% / 34.05%, of which the growth rate of deducted non-net profit is faster than the growth rate of net profit attributable to the mother, which is mainly due to the synchronization of multiple data such as the company’s non-current asset disposal gains and losses, wealth management income and other changes in fair value of non-recurring itemsDecrease; In 2018, the company’s gross margin / net margin decreased by 0.89 points.49pct, the decline in gross profit margin caused the decline in net profit margin.For Q4 alone, the company’s net profit / deductible non-net profit also increased by 0.68% / 33.29%, the growth rate of net profit attributable to mothers or the decrease in the fourth quarter was mainly due to breakthroughs in expenses in the fourth quarter, of which the gross profit / net interest rate of single Q4 was changed by 2 from the previous quarter.59 points / -6.42pct, sales expense ratio / financial expense ratio increased by 3 sequentially.03pct / 0.92 points.If the profit of the company’s internal business and extension business is split, the net profit of the internal business in 2018 will be about 11.95%, only 0 in a year.51pct, the profitability slightly decreased; the net profit margin of the outreach business or the merger is still in the consolidation period, the net profit margin decreased, about 2.18%. Gujia Home Furnishings continued product transformation, channel transformation, and stepped towards the leading home furnishing brand.The company’s categories / brands have formed an expanded and improved product matrix through independent research and development and outsourcing mergers and acquisitions, and the prototype of the large home has been visible; the company has continued to extend the retail flow of customers (from furniture stores to department stores, household appliances stores, online and evenReal estate companies extend), and through marketing model innovation, strengthening supply chain management, etc., to improve channel efficiency, the company’s retail capabilities and supply chain management capabilities are constantly being strengthened, and in the future it will gradually become a leader in large home retail brands.In terms of investment, under the expectation of real estate completion in the short term, it will bring the possibility of estimation and performance recovery; in the medium and long term, the company is still optimistic about the growth space brought by the company’s foothold in software and moving towards the home.We expect the company’s EPS to be 2 in 2019-2021.78/3.27/3.84 yuan, corresponding to PE20 / 17 / 15X, maintain “Buy” rating. Risk Warning: 1. Real estate growth rate was lower than expected; 2. Major changes in the factors affecting exports; 3. Excellent growth of raw materials.