Gujia Household (603816) Interim Report Comments: Interim Report Meets Expected Supply Chain Optimization to Create Long-term Competitive Advantage

Gujia Household (603816) Interim Report Comments: Interim Report Meets Expected Supply Chain Optimization to Create Long-term Competitive Advantage
Core point of view H1 operating income in 2019 will grow by 23 annually.At 7%, net profit attributable to mothers is increasing by 15 per year.8% of the company’s H1 in 2019 achieved operating income of 50.100,000 yuan, an increase of 23 in ten years.74%, net profit attributable to mother 5.59 ppm, an increase of 15 in ten years.79%, subdivided quarterly, the company achieved operating income of 25 in the second quarter.5 billion (+16.10%), net profit attributable to mother 2.6.3 billion (+23 y / y).01%).  Relative density of gross profit margin is 0.34pct to 35.64%, during which the rate of expenses increases by 1 each year.35pct to 23.68%, the management costs and financial costs increased rapidly due to the impact of consolidation.  The growth rate of custom homes is dazzling, and the refined operation helps the income continue to grow. The growth of traditional sofas, beddings and custom homes is dazzling. In 2019, H1 achieved revenue of 28.2.4 billion (+ 37% YoY).15%), 7.2.7 billion (+ 38% YoY).02%), 1.3.8 billion (+ 67% YoY).63%).  In the first half of the year, the company continued to promote the integration and optimization of the supply chain, guided by customer needs, changed the delivery cycle, and customized differentiated supply chain solutions based 苏州夜网论坛 on different scenarios. It leveraged the company’s various business synergies to enhance its continuous growth of revenue.  Investment recommendations and profit forecast We are optimistic about the continuous optimization of the company’s operations: 1) Multi-category and multi-level product layout to consolidate product strength advantages; 2) Blank city layout, existing city stores continue to optimize, actively develop B-end, mall channels, and help domestic salesBusiness continued to improve; 3) Foreign trade focused on key customer strategies to maintain a stable level of profitability; 4) Supply chain upgrades and optimization, advancement of information systems to assist management, and continuous improvement in operational efficiency  It is expected that the company’s net profit attributable to its parent in 2019-2021 will 无锡桑拿网 be 11 respectively.9, 14.3, 16.80,000 yuan, currently sustainable corresponding to December 2019.3xPE, considering the company’s 19-20 year forecast net profit compound growth rate of 19%, given the company’s 2019 19XPE estimate, the corresponding PEG is 1, the reasonable value is 37.62 yuan / share.  Risks suggest that the real estate cycle leads to increased competition in the industry; post-investment management does not meet expectations, and rising raw material prices affect profitability; the advancement of information systems is not expected, and the risk of competition in the industry is intensified.