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Jiuyang shares (002242): clear momentum for continued growth

Jiuyang shares (002242): clear momentum for continued growth

19H1 results were in line with expectations.

Product innovation and channel improvement resonance have brought the company’s operations to continue to improve, and the company’s performance in 2019 has entered a steady growth cycle, increasing its holdings.

Investment points: Maintain profit forecast, maintain target price and increase holdings.

Product innovation and channel improvement resonance have brought the company’s operations to continue to improve, and its performance in 2019 has entered a steady growth cycle.

The EPS for 2019-2021 is maintained at 1.

11/1.

24/1.

36 yuan, maintaining a target price of 25.

69 yuan, corresponding to 19x 23xPE, “overweight”.

19H1 results were in line with expectations.

19H1 company revenue 41.

8.7 billion (+15.

0%), net profit attributable to mother 4.

0.6 billion (+9.

7%), gross profit margin 32.

3% (-0.

7pct), net interest rate 9.

7% (-0.

5pct).

19Q2 company revenue 23.

8.8 billion (+15.

3%), net profit attributable to mother 2.

4.3 billion (+8.

9%), gross profit margin 32.

0% (-2.

1pc), net interest rate is 10.

2% (-0.

6pct).

Core category innovation + channel improvement and stable operating performance.

The growth rate of the 19H1 wall breaker exceeded 20% was the company’s largest growth momentum. The double boiler and soymilk machine also maintained a small number growth.

The connected transaction with SharkNinja contributed to the increase in revenue, and some orders for export in 19H1 were about 2.

600 million.

The high-end products bring the quarterly +1 in gross domestic profit margin of 19H1.

04pct to 34.

At 1%, the gross margin of SharkNinja’s foundry business was lower than domestic sales, so the overall gross margin fell by -0.

7pct to 32.

3%, but 武汉夜网论坛 the proportion of foundry business increased to reduce the sales expense ratio, sales / management / research and development / financial expense ratio -2.

6 / + 0.7 / + 0.

1 / -0.

1pct.

At the same time, the channel improvement effect continued to show, and the offline channels maintained a positive growth.

Category expansion opens up room for growth, and SharkNinja develops synergistically to increase performance.

In 2019, the company continued to carry out product innovation, brand rejuvenation, and development of environmental electrical appliances. New products continued to be launched to promote a new round of growth.

At the same time, Jiuyang provides product support for the SharkNinja kitchen small appliances category. It is expected to drive Jiuyang’s export scale in 20194.

50,000 yuan, a 10-year growth of 137%, has become a major new growth point of performance.

Core risks: domestic demand is below expectations; new product launches are below expectations.