Diou Home Furnishing (002798): Engineering retail sales grow faster than expected

Diou Home Furnishing (002798): Engineering retail sales grow faster than expected

The company released the third quarter report for 2019: the company achieved revenue of 41 in the first three quarters.

20,000 yuan, an increase of 29 in ten years.

47%; net profit attributable to mother 4.

26 ppm, an increase of 57 in ten years.

17%; net profit after deduction to mother 3.

750,000 yuan, an annual increase of 42.


Achieved revenue of 16 in the third quarter.

40,000 yuan, an increase of 28 in ten years.

44%; net profit attributable to mother 1.

930,000 yuan, an increase of 69 in ten years.

64%; net profit after deduction to mother 1.

70 ppm, an increase of 54 in ten years.


  Opinion: Ossino continues to grow rapidly, with performance 合肥夜网 exceeding expectations.

The company’s 19Q1 / Q2 / Q3 achieved revenue of 10 respectively.



40,000 yuan, an annual increase of 37.

64% / 25.

25% / 28.


19Q1 / Q2 / Q3 respectively achieved net profit attributable to mother 0.



9.3 billion, an increase of 48 each year.

82% / 47.

93% / 69.

64%, third quarter net profit growth accelerated.

Benefiting from the continuous strength of the engineering business and the volume of retail-side business, the performance achieved rapid growth, slightly exceeding expectations.

In the first three quarters, Osnos achieved revenue of 37.

1.3 billion, an increase of 36 in ten years.


Realize net profit 3.

760,000 yuan, an increase of 38 in ten years.

88%, the company continued to promote the channel layout and actively develop small B business on the retail side, and continued to develop customers on the engineering side to bring incremental increase, driving the high performance of the business of Osnos

  Product structure optimization promoted a slight increase in gross profit margin, and cash flow improved significantly.

In terms of gross profit margin, the company’s gross profit margin for the first three quarters of 19 was 35.94%, an annual increase of 1.

40pct, benefiting from the higher proportion of construction ceramics business with higher gross profit margin.

In terms of expense ratio: the company’s expenses during the first three quarters of 19 were 24.

21%, an annual increase of 0.

51pct, sales / management / financial expense ratio are 16 respectively.

03% / 7.

29% / 0.

89%, the changes in ten years were +0.

92 / -0.

55 / +0.

15 marks.

Selling expenses increase by 37 per year.

30% is due to the increase in engineering costs and advertising costs.

The cash flow from operating activities in the first three quarters increased by 145 each year due to the increase in company rebates and government subsidies.

06%, cash flow improved significantly.

  The European direct sales model guarantees service quality and has obvious advantages; by expanding the construction of its own production capacity, the future profit level will continue to increase.

Connaught’s direct sales channel accounts for 50% +. The core customers’ orders are covered by direct sales. Direct sales can provide high-quality services, which is the core advantage of the company’s rapid expansion of engineering channels.

In addition, the company plans to add 10 million pieces of porcelain in Jingdezhen, 2.5 million glazed tiles / antique tiles, and 3,200 general-purpose wall and floor tiles in Tengxian County, Guangxi.Promotion.

  Earnings forecast and estimation: The engineering business continued to grow at a high rate, increasing retail channels to open up channels to achieve rapid growth, and raised earnings forecasts.

The EPS is expected to be 1 in 19-21.

45, 1.

82, 2.

27, corresponding PE is 15X, 12X, 9X.

Give “Buy” rating.

  Risk warning: Real estate sales are less than expected, and customer development is less than expected