Meike Home (600337) 2019 First Quarterly Report Review: The rebound in first- and second-tier real estate helps to improve quarterly performance
Investment Highlights: The company announced its first quarterly report for the year of 19: The company achieved revenue of 10 in 19Q1.67 ppm, a five-year increase of 5.2%; net profit attributable to mother 0.6.7 billion, an annual increase of 6.1%, deducting non-net profit 0.64 ppm, an increase of ten years.6%, slightly lower than the forward-looking expectations.19Q1 net cash flow from operations was -2.97 million US dollars, the cash flow pressure is mainly due to the end of 18 years of bank acceptance and commercial bills in 19Q1 concentrated discount, commissions and asset usage fees and other growth.The company is driven by multi-brand development, intelligent manufacturing, and diversified channel development. When the real estate macro environment is relatively unfavorable, the company always adheres to the improvement of its products, brands and channels. In 19Q1, due to the traditional off-season of the first quarter and the impact of the Spring Festival, factors such as revenueUnder pressure for the time being, but we think the company’s 19Q2 is expected to benefit from the recovery of real estate in first-tier and second-tier cities, and its performance will improve quarter by quarter. Affected factors and reasons for the high base in the previous period, the revenue growth rate in 19Q1 was lower than expected, and the overall overall situation of 19 was better.19Q1 direct sales achieved sales revenue6.99 ppm, a ten-year increase of 7.6%, joining to achieve 0 sales income.87 ‰, a decrease of 8 per year.5%, wholesale business income 2.69 ppm, an increase of ten years.5%.Domestic sales: 1) 19Q1 was under pressure in the first half of the year, and orders started in March are better: January-February 1919 was still affected by the decline in the real estate boom for 18 years, and domestic retail performance was average; but through the recovery of first- and second-tier real estateThe industry is positive, and the company’s orders in March gradually improved, and the monthly orders increased by more than 20%.Due to the timely conversion of written orders in the second half of March, the revenue growth of the statement is expected to reach 19Q2.2) The impact of the traditional low season and the Spring Festival in the first quarter: Since the Spring Festival of 19 was in early February, the January-February was affected by the Spring Festival. The sales situation was under pressure, and the number of stores increased by only 3 (vs18Q1 added 53).We expect the overall sales of 19Q2-19Q4 to return to flat expectations.3) Factors with a high base in 18Q1: In the first quarter of 2018, the revenue from partial order conversion in 17Q4 was included. Therefore, excluding the influence of the high base in 18Q1, the actual sales income in 19Q1 was close to 10%.Export: In the early stage, the company prepared for the Sino-U.S. Trade war and transferred the export capacity of ART and Caracole to Vietnam. Due to the delayed shipment caused by the conversion, some of the revenue was promptly recognized, and the supply chain system is still in the stage of continuous optimization. We expect the companySince 19Q2, export sales are also expected to continue to improve. The company’s multi-brand and channel strategy continued to advance, and cooperation in the hardcover room segment went smoothly.1) Multi-brand development: The multi-brand strategy is still the main line of the current company’s development. After concatenating the brands such as Meikemeijia and ART series, the company continues to expand the ZEST, JonathanCharles and Rowe brands.By 19Q1, the company has a total of 15 brands. In the future, the company is expected to use these brands to continuously expand the consumer base, thereby further increasing the city’s market share.2) Extensive channel layout: As of 19Q1, 108 stores of Meikemei (net + 1), 145 ART classics (direct management 9 + joining 136), 49 ART West (direct sales 5 + joining 44), Rehome isWith 17 stores, YvvY has 7 stores.Maikemeijia Wuhan Brand Store has been opened in March 2019, achieving a one-stop home shopping experience with high efficiency, large area and multi-passenger flow.3) Hardcover business cooperation: The company cooperates with Golden Mantis and the World Bank to open channels at the hardcover channel and strengthen the development of hardcover room channels.4) Accumulation of overseas synergies: The new brand Jonathan Charles also tried to sink the brand in the country by opening stores, and constantly enhanced competitiveness. Enhance product structure upgrades, continuously improve operating systems, and improve supply chain efficiency.The company’s 19Q1 consolidated gross profit margin decreased to 54.4% (reduction of 0 per year).8 pct), mainly due to: 1) changes in consumption structure, due to the increase in the proportion of small and medium-sized product revenue; 2) the increase in raw material and labor costs; 3) the increase in fixed costs under the pressure of income scale still affects gross profit margin.In terms of expenses, 19Q1 sales expenses decreased by 3.4%, through the company’s strengthening of marketing expenses control, we have seen a more significant improvement in sales expenses.Measures for continuous improvement of future earnings: 1) Price increase and cost hedging: The company conducts cost hedging through operations and price increases.2) Strengthening the supply chain: The company has comprehensively upgraded its internal management system in the early stages, improved the supply chain management delivery level, and improved inventory turnover. In the future, it will gradually strengthen coordination and information construction, and its profitability will continue to increase.In terms of cash flow, the operating cash flow in 19Q1 was negative, mainly due to the centralized redemption of bank acceptance bills in the previous period, but excluding the impact of payment, the actual operating cash flow situation was relatively stable.19Q2 As the company strengthened the gradual opening of new stores and sales management, we continued to improve our operating cash flow. The Meike Group divested the chemical sector and focused on the home furnishing industry. The group’s pledge pressure gradually eased.In the early stage, Mak Group acquired Mak Chemical 1 which it held.8.4 佛山桑拿网 billion shares to Zhongtai Chemical, accounting for 25%. After the completion of the transfer, Meike Group’s shareholding ratio will be 33.7% reduced to 8.7%.The group gradually reduced the chemicals sector, gradually reduced funding pressure, and obtained cash flow to repay debts.With the reduction of leverage of the group company, the development of the main business is clear, and the coexisting suppression factors are eliminated. Effectively deploy a multi-brand strategy, launch small and medium-sized products, optimize the structure of home furnishing products, deeply explore the potential of the supply chain, divest chemicals and focus on the main home furnishing industry, and continue to stimulate and improve management efficiency.The company has integrated multi-brands from furniture manufacturing, marketing and wholesale 天津夜网 to retail. The pace of store opening will accelerate in the future. Small and medium-sized units will rapidly drive sales growth and customer base expansion. The improvement of supply chain efficiency will drive profitability, which will become a medium-to-long-term growth trend.Meike Group successfully divested the chemical sector and focused on home retail business.The company enhances the cohesion of employees from top to bottom, vigorously develops a multi-brand big home strategy, and guarantees the flexibility of the company’s performance.The 18-year repurchase demonstrates confidence in sustainable development.We maintain the company’s EPS of 19-21.29 yuan, 0.34 yuan, 0.The profit forecast of 39 yuan, the growth rate is 15%, 15%, 16 respectively.5%, corresponding to 17 times, 14 times, and 12 times the estimated value. We are optimistic about the company’s brand strength and manufacturing advantages in the finished home furnishings in the medium and long term. Recently, Meike can improve the impact of the pressure on the home industry sector.It is expected to improve quarter by quarter. We think the company expects to repair and maintain “buy”!