Sofia: Steadily pushing the new store to expand the unit price of passengers is still considerable
Securities Times Network March 06 News
event:
On February 27th, the company released the 2017 annual performance report. During the reporting period, the company achieved a total operating income of 6.162 billion yuan, a year-on-year increase of 36.02%; net profit of the mother returned to 906 million yuan, an increase of 36.37%; basic earnings per share was 0.9806 yuan, an increase of 32.80%. Among them, Q4 achieved revenue of 1.911 billion yuan in a single quarter, an increase of 22.58% over the same period of last year. The net profit of returning to the mother was 330 million yuan, an increase of 28.91%. The full-year net profit margin for 2017 was 14.70%, which was 0.63pct higher than the 2016 net profit margin.
Investment points:
The company's annual performance growth rate was high and low, mainly due to the twists and turns in the price adjustment. Judging from the changes in the company's annual revenue and net profit growth of the returning mother, Q1/Q2/Q3/Q4 single quarter revenue growth rate corresponds to 48.30%/49.44%/35.46%/22.58%, Q1/Q2/Q3/ Q4 The net profit growth rate of single-quarter return to the mother is 46.75%/47.31%/35.18%/28.91%, respectively. It can be seen that since 2017Q3, the company's revenue and profit growth rate has shown a significant downward trend. We believe that the main pressures may be reflected in the following aspects: 1. The negative impact of real estate regulation factors gradually emerges; 2. The impact of the rise of the B-end channel on the C-end sales diversion; 3. The SMI kitchen cabinet 2017Q1 is overpriced And directly inhibit the growth of 2017Q2-Q3 kitchen cabinet orders. Q4 orders were restored after the kitchen cabinet price was lowered in September. It is estimated that Smy Kitchen Cabinet will lose 70 million in 2017. In 2018, with the improvement of operation and management, the optimization of store image, the acceleration of channel expansion and the continuous high-end of category, Simi Kitchen Cabinet is expected to turn around.
In 2018, the company will increase the adjustment of dealer channels and steadily promote the expansion of new stores. For the company's current 2,170 dealers, the company eliminated only 20 companies per year during 2014-2016, and the elimination rate is low in the industry. In this regard, the company has increased the elimination of dealers from 2017Q4. In the previous Q3, 2017 eliminated 30, and Q4 eliminated 40 in a single quarter. It is expected that 100 will be eliminated in 18 years, thus accelerating the improvement of channel quality. In addition, in 2018, the company plans to open 300 new kitchen cabinets and 400 wardrobe stores. The store opened faster than 2017 and more than half of the stores are located in the fourth- and fifth-tier cities, thus accelerating the sinking of the channel.
Promote the optimization and upgrading of product structure, and the room for customer unit price improvement is still considerable. In 2018, the company will introduce solid wood baking varnish series in the Simi kitchen cabinet business segment, which will push the price belt up. And it will form a joint effort with Sophia's big home business (combination of wardrobes, kitchen cabinets, furniture items, curtains, etc.) to form a complete house-customized solution. At present, the number of custom-made cabinets is only 4, and it is expected that the number of custom-built cabinets will be increased to 8 after the landing of the kitchen and kitchen.
Earnings Forecast and Investment Rating: We believe that Q1-Q2 will be in the continuous adjustment period of the kitchen cabinet business in 2018, and the effect of Q3-Q4 adjustment and optimization will gradually emerge. In terms of long-term cycle, the industry is still in the stage of steady growth in customer unit price and order volume and channel expansion, but the intensity of industry competition has been intensified and the negative factors of real estate have been reflected. We downgrade the EPS of the company from 2017 to 2019 to RMB 0.98, RMB 1.35 and RMB 1.90, and the corresponding PEs are 37.42 times, 27.27 times and 19.35 times respectively. Therefore, we give “overweight†rating.
Risk Warning: Property control factors, industry competition intensified, new store expansion is less than expected, and capacity is not as expected.
(Securities Times News Center)
Zhejiang Lamon Technology Inc. , https://www.baby-chair.com