Gold Medal Kitchen Cabinet (603180): 19H1 performance rebounded, category channels developed

Gold Medal Kitchen Cabinet (603180): 19H1 performance rebounded, category channels developed
On August 21, the Gold Medal Kitchen Cabinet released its semi-annual report for 2019.The company’s 2019H1 achieved operating income7.85 ppm, an increase of 22 in ten years.15%; net profit attributable to mother 0.70 ppm, an increase of 13 in ten years.87%; net profit after deduction is 0.38 ppm, a ten-year increase4.06%. By quarter, 2019Q2 company achieved operating income5.07 million yuan, an increase of 33 in ten years.14%; net profit attributable to mother 0.51 ppm, an 18-year increase.74%; net profit without deduction to mother 0.37 ppm, a 49-year increase of 49.4%. A brief review of the wardrobe, the bulk of the effort, the steady development of channel construction, the 19H1 performance rebounded in 2019H1, the company’s retail business performance was stable, the bulk business, the orange home wardrobe grew rapidly, and promoted the company’s revenue growth.15% to 7.8.5 billion.19Q2 revenue increased by 33.14%, a significant increase year-on-year. The wardrobe business has grown rapidly and the bulk business has continued to develop.In terms of wardrobe business, the company has expanded its channel layout. As of the end of June 2019, the total number of orange wardrobe closet franchise stores was 459 (including under construction), with 128 new additions (including under construction) in the first half of the year; and 佛山桑拿网 focus on building benchmark franchisees., Strengthen marketing assistance, and integrate the terminal operation model with designers as the core.19H1 wardrobe business realized operating income of 9983.370,000 yuan, an annual increase of 183.33%.In terms of bulk business, the company has now broken through strategic partnership agreements with 38 of the top 100 real estate companies in the country. At the same time, relying on cabinet brand resources, it has quickly introduced wardrobes, wooden doors, kitchen appliances and other products into the hardcover market, and has continued to strengthen the cultivation of core agents.19H1 major business realized operating income1.7.3 billion, an annual increase of 142.98%. The construction of channels has progressed steadily.In 2019, the company will still mainly carry out investment building and channel expansion.As of the end of June 2019, the company has 1,508 gold kitchen cabinet stores (including under construction), 459 orange wardrobe stores (including under construction), and 30 orange door stores (including under construction).For 1997.In the second half of the year, the company’s cabinet retail channels will continue to sink, deepen cultivation, and promote the construction of gold medal homes; wardrobes, wooden doors will still take market coverage as the core, and accelerate the layout to form a coordinated kitchen, clothing, and wooden channel. At the same time, strengthen the drainage and conversion capabilities of new marketing channels for home improvement, designers and e-commerce. The gross profit margin has increased. In terms of effective control of profitability during the period, the gross profit margin of the company’s sales in 2019H1 was 35.61%, a decline of 4 per year.09pct, mainly due to the increase in the proportion of closet business and bulk business with relatively high gross profit margins; net sales margin was 8.87%, a decrease of 0 every year.66pct, the main selling expense ratio declined overall. In terms of period expenses, 2019H1 company’s period expenses 29.17%, a decline of 2 per year.94 points.Among them, the sales expense ratio decreases by 3 every year.31 points to 18.96%, mainly due to the reduction in advertising costs, transportation costs, network service fees, etc .; management fee rate increased by 0.08pct to 10.38%; financial expense ratio increases by 0 every year.29 points to -0.17%. The convertible bond project was approved, and the plan to issue convertible bonds was raised3.92 million U.S. dollars to increase production capacity and guarantee capacity On May 28, 2019, the Gold Cabinet Cabinet Convertible Bonds Plan was replaced by the CSRC.The company’s proposed total public funds raised through convertible bonds will not exceed RMB3.US $ 9.2 billion for the construction of Xiamen Jinpai Kitchen Cabinet Co., Ltd. Tongan Phase IV project 1 #, 2 #, 4 #, 5 # factory construction project, Jiangsu Jinpai Kitchen Cabinet Co., Ltd. Phase II project 3 #, 5 # factory constructionproject. The former project plans to build new press-fitting workshops, retail kitchen cabinet workshops, wooden door workshops and other supporting facilities, with a construction period of about 18 months. After the project is in production, it is expected to add an annual sales income of 74,955.One million yuan and a net profit of 8,616.950,000 yuan.The latter project intends to build new press-fitting workshops, steel baking workshops, engineering kitchen cabinets, wooden door workshops and other supporting facilities. The construction period is about 12 months. After the project is in production, it is expected to add 41,515 annual sales income.One million yuan and a net profit of 3,584.70,000 yuan.The public issuance of convertible corporate bonds will supplement the company’s existing overall kitchen cabinet and overall closet production capacity, and expand the company’s customized wooden door product line to enhance the company’s capacity guarantee capabilities. Investment suggestion: We expect the company’s operating income from 2019 to 2020 to be 20.6.4 billion, 24.88 ppm, an increase of 21 in ten years.26%, 20.54%; net profit attributable to mother is 2.4.4 billion, 2.89 ppm, an increase of 16 in ten years.35%, 18.12%, corresponding to the current PE of 15.10x, 12.79x, maintain “Buy” rating. Risk factors: Real estate sales are down, and industry competition is intensifying.