Supor (002032) 2019 Interim Report Comments: Performance Meets Expected Repurchase Incentive Plan, Establish Long-Term Mechanism
Investment points: Interim report revenue is slightly lower than expected, and profit performance is in line with expectations.The company disclosed in its 2019 Interim Report that it achieved operating income of 98 in the first half of the year.$ 3.6 billion, an increase of 11 per year.15%, realizing net profit attributable to mother 8.38 ppm, an increase of 13 in ten years.35%; of which, operating income in the second quarter was 43.62 ppm, an increase of 10 in ten years.09%, net profit attributable to mother 3.23 ppm, an increase of 12 in ten years.62%. The company’s Q2 revenue growth rate decreased by 2 percentage points month-on-month, slightly lower than expected, and the profit growth rate remained flat, in line with expectations; we analyzed the revenue growth rate in the first half of the year mainly due to the growth rate of e-commerce to about 20%.Single-digit growth dragged down the performance of domestic sales, while export sales were affected by the pace of order transfer, with a growth rate of 10.83%.Interim Report Dividend: The company’s Interim Report intends to distribute a cash dividend of 2 per 10 shares to all shareholders.58 yuan, cash dividend 2 in the first half of 2019.1.2 billion, the dividend rate is 25.31%, corresponding to an index rate of 0.37%, the interim dividend is in line with expectations. Channel sinking has obvious advantages in advance, and the growth rate of cookware + appliances is better than the industry.The layout of 4w + terminal outlets in third- and fourth-level counties and township markets of Supor drinking water has achieved a series of other outstanding performances in the industry, and the growth of Supor cookware in the first half of the year8.5%; electrical appliances increase by 12 in ten years.45%.We can also verify 夜来香体验网 from the terminal retail data: environmental appliances raised prices across the board, and the market share of chefs ‘electric appliances has further increased.In terms of offline market share, Supor’s sales of environmental electricity increased rapidly. The adjustment of income structure caused the growth of gross profit margin, and cash flow need not be adjusted in the short term.From the perspective of profitability, the company’s gross profit margin in the first half of 2019 was 30.78%, a small margin of 0 a year.27 pcts; we analyze the reason that the gross profit margin of Supor decreased year by year in the first half of the year because the growth rate of domestic and foreign sales drastically dragged down gross margin performance.In terms of cash flow, the company’s net cash flow from operating activities in the 南京夜网 first half of the year was zero.2.7 billion, the serious decline in cash flow was mainly due to the listed company’s enthusiasm for the dealers to pick up the goods, increasing the credit line to the core dealers led to a longer cash flow delivery cycle.In the first half of the year, due to the adjustment of tax rates, an additional 40 million yuan was accrued. After the restoration, the overall net profit growth rate of return to mothers reached 19%; Looking forward to the future: reducing dividends + declining costs + high-end pulling to support high-end profit growth, we continue to maintainThe company’s performance end maintains a growth judgment of 15% -20%. Performance-driven: Share repurchase demonstrates confidence, domestic sales of emerging categories contribute to performance elasticity + export cyber order transfers grow steadily. The company issued a share repurchase program on August 30, 2019.The repurchase of shares further demonstrates consensus and confidence, improves the corporate governance structure, and establishes a long-term incentive and restraint mechanism for the management team.Domestic sales of three emerging categories of kitchen tools, environmental and kitchen appliances continued to contribute to the increase in performance.In the first half of the year, kitchen tools grew by about 20% each year; kitchen appliances grew by 30% each year!In the long run, Supor will break through in the future to accept more orders from Cyber, and there is a lot of room for transfer of export orders! Profit forecast and investment rating.We maintain the company’s net profit attributable to mothers for 2019-2021 at 20.0 billion, 23.800 million, 27.600 million, corresponding income 2.44 yuan, 2.90 yuan and 3.36 yuan, corresponding to dynamic price-earnings ratios of 30 times, 25 times and 22 times respectively. The company’s domestic sales category expansion + export order transfer, online dividend release + offline channel sinking, the future performance will continue to grow with high certainty, maintaining a “buy”Investment rating.