Chenguang Stationery (603899) 2019 Semi-annual Report Review: One Wing Sees Results, Collip, Rapid Development of Living Museum
I. Overview of the event On August 24, the company released its semi-annual report for 2019.
At the core of the report, the company achieved operating income of 48.
390,000 yuan, an increase of 27 in ten years.
78%; net profit attributable to mothers4.
71 ppm, an increase of 25 in ten years.
78%; net profit deducted from non-attributed mothers4.
27 ppm, an increase of 25 in ten years.
Second, the analysis and judgment of the first half of the performance of the company maintained a rapid growth in the first half of the company’s revenue in the first half of the company’s net profit growth rate of 28%, 26%, the performance maintained a rapid growth.
In terms of quarters, Q1 / Q2 single-quarter revenue increased by 28%, and net profit attributable to mothers increased by 26% / 25%, respectively.
In terms of products, writing instruments / student stationery / office stationery / office direct sales achieved income11.
0 billion, an increase of 10 each year.
5% / 26.
7% / 11.
5% / 56.
Profitability is diversified and stable. The company’s sales, management (including R & D) and financial expense ratios are 9 respectively.
12%, change -0 each year.
01pct, during the period, the overall cost rate rose by 0.
19 points to 15.
In terms of different products, the gross profit margin of writing instruments / student stationery / office stationery / office direct sales changes by 0.
19 / -1.
The company’s profit level is stable on average, and its gross profit margin has increased by more than 0.
60pct to 26.
20%, net interest margin fell slightly.
10 points to 9.
81%. In terms of integration, the two wings have achieved results. In the first half of the year, the company added about 2,000 retail terminals to more than 7 in the first half of the year.
80,000, at the same time actively promote the upgrade of franchise to improve the quality of single stores.
In terms of new business, Colip continued to develop new customers, with revenue in the first half of the year1.
500 million, an increase of 56% in ten years.
The Chenguang Living Hall (including Jiumu Sundries Co., Ltd.) achieved total operating income2.
3 ‰, an increase of 95% in ten years, of which Jiumu Sundry Club achieved operating income1.
600 million, an increase of 240% in ten years.
As of the end of the reporting period, the company had 300 large retail stores across the country, including 129 Chenguang Living Centers and 171 Jiumu Sundry Clubs (114 directly-operated and 57 joined).
Third, the investment proposal is expected to achieve basic profit in 2019-2021.
71 yuan, corresponding PE is 38X, 31X, 25X.
The company’s traditional core business provides channels and brand moats, and estimates the premium.
We are optimistic about the increase in achievements brought about by the rapid development of Klipp platform and living museum, and maintain the “recommended” level.
4. Risk warning: raw material prices rise, new business advances less than expected, and industry competition intensifies