Dongyi Risheng (002713) Annual Report Comments: Sumei Business Expected to Reduce Losses and M & A Companies to Contribute Major Net Profit
Sumei, the A6 business continues to advance, and the company has steadily increased in the new decade. In 2018, the company broke the new single 42.
6.2 billion, an increase of 5.
13% of operating income in 2018 1.
New chronic single 11 in Q1 2019.
4.6 billion, an increase of 8.
72%, of which: the new installation order for the new decade.
5.4 billion, an increase of 41.
The company has orders 39 in the first quarter of 2019.
0.8 billion, slightly higher than the same period last year.
As of the end of the reporting period, the company opened a total of 48 Sumei direct-operated stores and added 13 to 163 A6 stores.
In 2019, Sumei’s business direction is efficient full-service operations, and after many years of corporate cultivation, it tries to become another important entry point for orders.
The gross profit increased slightly, and Sumei Super Home improved its volume in 2018. The company achieved operating income of 42.
3杭州桑拿网.0 billion, an increase of 16.
36%, including home improvement income of 36.
6.7 billion, an increase of 12.
After excluding related M & A companies, the company realized revenue34.
0.5 billion, an increase of 1 in the same caliber.
Sumei Super House contributed a significant increase in income, about 1.
4.2 billion, about 0 in 2017.
The company’s gross profit margin is 37.
16%, the same increase of 0.
25 units, of which the gross profit margin of the home improvement business was 35.
83%, the same increase of 0.
The company’s revenue in the first quarter of 2019 was 7.
9.7 billion, an increase of 11.
09%, down 23 units from the same period of the previous year, mainly due to the characteristics of industry segmentation.
The expense ratio rose during the period, with an expense ratio of 28 during 2018.
1%, an increase of 0 from last year.
A total of 63, of which, the sales expense ratio increased by zero.
75 expenses, mainly due to the penetration of employees’ wages and social security expenses, publicity expenses and other increases; the management expense rate decreased by zero.
37 units; financial expense ratio also increased by 0.
15 units; R & D expense ratio increased by 0.1 unit, basically flat.
The company accrued asset impairment losses of 23.03 million this year, an increase of 14.52 million over the previous year, mainly due to provision for bad debts.
Net profit has steadily increased, and most of the net profit contributed by mergers and acquisitions was attributed to the net profit of the mother in 20182.
5.3 billion, an increase of 16.
The operating profit of Sumei Super House decreased by 90.76 million, which was expanded by nearly 0 compared with the previous year.
500 million, net profit after returning to the mother after excluding budget business.
4.5 billion, an increase of 15.
After excluding the relevant merger and acquisition company, the net profit is returned to the mother.
5.5 billion, with a decrease of 9.
Return to mother’s profit in the first quarter was -0.
800 million, with a decrease of 28.
4%, mainly due to financial expenses, additional impairment losses on assets.
Company cash ratio is 0.
995, the same minus 5.
1 unit; payout ratio is 0.
83, same as minus 4.
Net operating cash flow inflows 2.
5.0 billion, a net inflow of 5.
6.9 billion decreased by 64.
01%, mainly due to the increase in the transfer of cash and taxes paid to employees, and the increase in operating cash inflows has been slower than replacement.
The company plans to distribute a cash dividend of 8 to every 10 shares for all shareholders.
8 yuan, the capital reserve will be transferred to all shareholders 6 shares for every 10 shares, the dividend rate is 91.
5%, dividend yield 5.
Investment suggestions The company’s business scale and revenue growth are good, and there is a large amount of overlap in hand orders. The Sumei business’s systematic delivery operation system is gradually improving, and it is expected that it will reverse the business disruption situation in the future.
In summary, taking into account that Super American Super expects to cause the company to replace the base for 18 years, the EPS for 19-21 is adjusted to 1.
67 yuan / share (originally 1.
76 yuan / share), PE is 16, 13, 12 times.
Maintain target price at 20.
9 yuan, maintain “Buy” rating.
Risk reminder: Real estate investment growth rate drops, Sumei business advances less than expected