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Zhibang Home (603801) 2019 Interim Report Review: Whole House, Bulk High-speed Growth Channel Construction Steadily Advances

Zhibang Home (603801) 2019 Interim Report Review: Whole House, Bulk High-speed Growth Channel Construction Steadily Advances

The overall performance is good, and Q2 revenue growth has accelerated significantly.

重庆耍耍网2019H1 company achieved operating income11.

4.9 billion (+10.

24%), net profit attributable to mother 1.

100,000 yuan (+16.

13%).

Among them, 2019Q1 / Q2 operating income increased by 5 year-on-year.

20% / 13.

30%, net profit attributable to mothers grows by 4 per year.

91% / 21.

36%, the second quarter revenue and profit growth rebounded significantly, slightly higher than expected.

The whole-house custom business grew rapidly, with export sales and bulk business growth leading.

In terms of products, 2019H1 achieves full-house custom income2.

5.8 billion yuan (+73.

87%), the fusion effect of cabinet clothing appeared.

In terms of channels, it mainly benefited from the introduction of amoeba operations, the advancement of engineering projects and the adjustment and optimization of customer structure, and its major business income reached 2.

1.1 billion (+24.

41%); the Australian IJF equity cooperation model promotes the company’s business development in Australia, the expansion of the Americas business is smooth, and the export channel revenue reaches 0.

6.5 billion (+60.

85%).

Gross profit margin has improved, and profitability has continued to optimize.

2019H1 gross margin increased by 1.

04 points.

During the period, the expense ratio increased by 0.

12pct, corresponding to +1 increase in sales / management and R & D / financial expense ratio.

11pct / -1.

16pct / + 0.

71 points.

In summary, the company’s net profit margin on sales increased by 0.

49 points, up to 9.

59%.

The launch of new stores has been progressing steadily, and the channel sinking situation is good.

Compared with the end of 2018, 2019H1 company cabinets / custom wardrobes / wooden door dealers added 43/137/3, reaching 1263/732/120/ 880/147.

Investment suggestion: Forecast the company’s EPS in 19/20/21 to be 1.

46/1.

72/1.

96 yuan.

With reference to a comparable company’s assessment, the company is given a 13x 2020 PE with a target price of 22.33 yuan, maintaining the overweight rating.

Risk reminders: real estate risks, raw material price fluctuation risks, and increased competition in the industry.