Zhejiang Meida (002677): Distribution of channels with high performance and high dividends
Event: The company released its 2018 annual report.
In 2018, the company achieved operating income of 14 trillion, a long-term growth of 36.
49%, net profit attributable to mother 3.
78 ppm, an increase of 23 in ten years.
70%, the corresponding return is 0.
59 yuan / share; Q4 company’s income is 4.
68 ppm, an increase of 25 in ten years.
96%, net profit attributable to mother 1.
3 billion, an annual increase of 4.
59%, the company’s performance is basically in line with the military express expectation.
The company intends to distribute cash dividends to all shareholders for every 10 shares4.
65 yuan (including tax), a total of 3 trillion in cash, 79 cash dividends.
Q4 revenue growth has improved, and online growth continues to be high.
1) Quarterly: The company’s Q4 revenue growth rate was 25.
96%, and the company’s Q1-3 2018 revenue growth was 42.
46%; the expectation is that the growth rate of real estate sales in third- and fourth-tier cities will affect the demand for home appliances; and the number of new entrants to the integrated stove industry will increase, increasing competition.
2) Breakdown of channels: The sales volume of online channels in 2018 doubled compared with the same period of the previous year, and was basically the same as the half-yearly reporting time; the rapid growth of the company’s revenue was mainly due to the improvement of offline channel growth.In 2018, the number of terminal stores increased by more than 400, and the growth rate of newly opened stores was close to 20南京夜网%. The newly opened stores contributed to increase revenue growth. Through this, the company actively explored engineering channels and increased cooperation with real estate developers.
It is expected that the company’s revenue growth in 2019 will mainly come from channel deepening and development: the company will establish first-tier and second-tier cities in 2019 to supervise dealers to open stores, focusing on Suning, Gome and local appliance channels; third- and fourth-tier cities encourage dealers to addStores and small stores changed to big stores; at the same time, online optimization and optimization of operating models, increase online specialty stores.
The company’s gross profit margin was small, and channel construction increased sales expenses.
The company’s highest gross profit rate is the highest.
4 to 51.
5%, leading to rising costs of raw materials, expanding the company to make certain price adjustments 北京夜网 in the face of increased competition; the company’s expansion of advertising expenditures, new channel development brought about cost expansion, resulting in an earlier increase in sales expense ratio, 2018The annual sales expense ratio increased by 1.
22pct, the fourth quarter single quarter advance advance to 4.
6 points; reduction in management expense ratio by 2.
7 and 0.
One pcts, mainly due to the decrease in the provision of budget stocks and shares; the financial expense ratio remained basically stable.
In addition, the company’s investment income in 2018, non-current asset disposal income and government subsidies were 1,147.
50,000 yuan, a year-on-year decrease of 21.83 million yuan.
In terms of balance sheet and cash flow statement: at the end of 2018, the company’s accounts receivable and bills increased by 94 from the beginning of the period.
5%, mainly due to the growth of e-commerce channels led to faster growth in accounts receivable and bills.
Prepayments increased by 182 from the beginning of the period.
49%, mainly due to the increase in prepaid advertising costs.
The company received 16.
4.0 billion, exceeding the revenue scale, the company has excellent cash flow quality.
There is a lot of room for product growth, and the channel is further improved.
Integrated cooker products are at the stage of increasing the penetration rate of the industry, and the market education transformed into consumers is becoming more and more mature.
The company will accelerate the development and construction of main sales channels and emerging sales channels such as e-commerce, KA, engineering, etc., and establish diversified marketing channels, which will further widen the difference with second-tier brands. Earnings forecasts and investment advice.
We expect the company’s net profit to be 4 in 2019-2020.
3.6 billion (previous average 4).
44 and 5.
1.6 billion), adding 2021 profit forecast6.
1.5 billion, the annual growth rate was 20.
23% and 14.
73%, corresponding to dynamic PE of 19 times, 16 times and 14 times, the company as an integrated stove leader is expected to benefit the industry’s continued growth dividends, maintaining the “overweight” investment rating.
Risk warning: real estate sales gradually increase industry demand; integrated stove sales fall short of expectations; raw material prices rise