Haolaike (603898)： Q2 performance under pressure category expansion + product differentiation to help future development
Haolaike (603898): Q2 performance under pressure category expansion + product differentiation to help future development
The event company released its 2019 interim report: 2019H1 company revenue 9.
380,000 yuan, an annual increase of 3.
86%, net profit attributable to mother 1.
49 ppm, a ten-year average of 17.
86%, mainly because government subsidies this year decreased by 45.76 million yuan compared with the same period last year, net of non-net profit1.
29 ppm, an increase of ten years.
Q2 single quarter revenue 5.
75 ppm, a 10-year increase3.
02%, net profit attributable to mother 1.
1 ‰, 24 years ago.
21%, deducting non-net profit of 0.
99 ppm, with a ten-year average of zero.
In terms of cash flow, 2019H1 sells goods and provides cash received for labor services10.
12 ppm, 10-year average1.
17%, net operating cash flow1.
21 ‰, a 37% decrease during the year, mainly due to the additional reduction in government subsidies.
2019H1 advance payment 0.
77 ppm, a ten-year average of 15.
4%, mainly for a certain income in order to ease dealer pressure.
Opinion: The mid- to high-end products hedge the impact of new categories of gross profit, and government subsidies have reduced the net interest rate.
2019H1 company gross profit margin 39.
39%, ten years +0.
11pct, net interest rate 15.
44% per year.
62pct, period expense rate 22.
06%, ten years +0.
41pct, sales, management, R & D, and financial expense ratios are 14 respectively.
14%, respectively -0.
1pct, the decrease in sales expenses was mainly due to the reduction of hard and broad categories, and the adjustment of marketing and delivery strategies. The increase in management expenses increased the main categories to supplement the expenses brought by the Doors and Windows Division and Hangzhou Hanlong Operation Division, and increased office expenses.
Q2 single quarter gross profit margin of 39.44% every year -0.
18pct, net interest rate 18.
8%, at least -7.
Wardrobe sales were under pressure, gross margins increased, and extended categories contributed to performance gains.
In terms of products, 2019H1 wardrobe revenue is 8.
270,000 yuan, -2.
86%, gross margin 43.
17%, ten years +1.
8pct. The increase in the gross profit margin of the wardrobe is mainly due to the increase in the proportion of high-end products (environmental protection original series, light luxury series);
25 ppm, + 1218% year-on-year, with a gross profit margin of 32.
06%, +15 per year.
7pct, cabinet trial production in June last year, so the increase in penetration for many years; income from supporting products is 0.
3.4 billion, a year-on-year increase of +15.
54%, gross profit margin 23.
28%, ten years +7.
87pct, mainly reorganizing the supplier system; wooden door revenue is 0
15 ppm, gross profit margin 4.
81%, wooden doors trial production last July; doors and windows 0.
19 trillion, gross profit margin -20.
88%, Hanlong doors and windows officially listed in March this year.
Retailer passenger traffic is under pressure, contributing a substantial increase in performance.
2019H1 retail revenue8.
9.4 billion, a year-on-year increase of +1.
21%, gross margin 41.
55%, ten years +1.
1pc, of which distribution income is 8.
5.4 billion, a year-on-year increase of +2.
12%, gross margin 40.
66%, ten years +1.
63pct, direct sales income 0.
400 million, a year-on-year increase of 14.
97%, gross margin of 60.
28%, five years -5.
It is expected that the company’s same-store sales will be basically the same, with a passenger flow of more than -10%, benefiting from new categories and mid- to high-end product customer orders + 10%.
Bulk income 0.
08 trillion, gross margin 33.
16%. At present, the company has bulk orders in hand of about 50 million yuan, and subsequently contributes to incremental performance.
In addition, A, B, and C cities earn yoy + 0% and 0, respectively.24%, 6.
The big home strategy continued to advance, achieving integration of multiple categories.
The company empowers large households from four aspects: brand, digital system, operating system, and product development. All categories use a unified brand, and gradually increase cabinets, wooden doors, and other categories in the department store system. At the same time, large home fusion stores are established.
As of H1, 2019, the company has a total of 1,818 stores, a net increase of approximately 52 (always a large home store) in the initial period, and has continued to store 700 cabinets and 500 wooden doors in the store. It is estimated that by the end of the year, there will be 1,000 cabinets and wooden doors.
Transform to fine retail management and promote omnichannel customer acquisition.
Starting from operational efficiency and user experience, the company carried out retail management reforms, established operational models to improve efficiency, and promoted standardization and upgrade of services.
The company promotes omni-channel customer acquisition. In addition to traditional 合肥夜网 channels, it focuses on social marketing, e-commerce platforms, content platforms, and diversified traffic entrances for home improvement channels.
At present, the home improvement channel accounts for more than 5% of the revenue, and it has settled in more than 600 cities. In April this year, it reached a cooperation with Qijiawang to undertake the precise C-end traffic and core home-end company resources of Qijiawang. At the same time, it was recharged to consider technological advancementDecoration industry, home improvement channels are expected to contribute more traffic.
We expect the company’s EPS to be 1 in 2019-2020.
24 yuan, corresponding to 12 for 2019-2020 PE.
94 times, considering that the company is constantly seeking changes on the channel and product sides when the industry is under pressure, and is optimistic about the company’s future layout of new channels such as new retail, bulk, and differentiated products. Expected incremental channels and incrementalThe growth contribution of the category is expected to increase year by year in 2019. At present, the company is estimated to have outstanding advantages and maintain a “buy” rating.
Risk warning: The real estate boom is lower than expected, and business promotion is lower than expected.