Zhejiang Meida (002677) 2018 Financial Report Review: Diversified Construction of Accelerating Performance Growth and Diversified Channels

Zhejiang Meida (002677) 2018 Financial Report Review: Diversified Construction of Accelerating Performance Growth and Diversified 杭州桑拿 Channels

[Investment Highlights]The company released the 2018 financial report, reporting that the combined company realized operating income14.

10,000 yuan, an increase of 36 in ten years.

49%; net profit attributable to mothers3.

78 ppm, an increase of 23 in ten years.

70%, the actual growth is in line with the disclosure of performance newsletter.

Among them, the fourth quarter achieved revenue4.

68 ppm, an increase of 25 in ten years.

96%; net profit attributable to mothers1.

3 ‰, an annual increase of 4.


In addition, the company plans to distribute 4 per 10 shares in 2018.

65 yuan (including tax), a total of 300 million distributed, the dividend rate reached 79.

37%, corresponding to an index rate of 3.


The growth rate of revenue in the fourth quarter increased, and the increase in supplementary expenses for raw material growth affected profit growth.

The company’s 18Q4 revenue growth rate was about 26%. In the same year, Q1-Q3 revenue growth rates were 53%, 49%, and 31%. In the fourth quarter, the revenue growth rate was improved in the first three quarters. There are two main reasons for this.In the second half of the year, the sales area of commercial buildings in third-tier cities in Q4 expanded by approximately 55%, which directly affected the demand for kitchen appliances decoration and replaced the intensified competition in the industry, which also relatively replaced the company’s share.

In addition, the company’s Q4 performance growth rate was about 5%, and the same year Q1-Q3 performance growth rates were 50%, 45%, and 25%. The decline in the fourth quarter performance growth was mainly due to higher raw material prices and increased expenses. The company’s raw materials were mainlyStainless steel plate, 18-year cold-rolled and hot-rolled prices all hovered at a high level, only slightly decreased in the fourth quarter, squeezed the gross profit space, Q4 gross profit margin YOY-2.

24pct; In 18 years, the company’s sales expenses increased, with an annual increase of 53%, and the Q4 sales expenses rate was YOY + 4.

At 61pct, the scale of investment income of consolidated wealth management declined, which comprehensively affected the fourth quarter net profit rate YOY-5.

69 points.

The growth of integrated stoves is still steady, and the sales expense ratio has increased.

In terms of product separation, the company’s integrated stove business increased by 36 in 18 years.

72%, accounting for 0% of total revenue.

15pct is still the main force for performance contribution, with a single gross profit margin of 55% maintained at a high level, cabinet revenue growth was slightly less than expected, only an increase of about 10%, but benefited from increased recognition of new categories such as steam boxes and disinfection cabinetsRevenue from other businesses increased by approximately 49% annually.

In terms of the composition of the spin-off costs, the company further strengthened its sales and R & D expenditures in 18 years, and increased its efforts in advertising and research and development such as high-speed rail, anti-aircraft artillery, and new media.

22pct, but because the revenue growth rate is faster than the R & D speed, the R & D expense ratio has shifted slightly; thanks to the reduction in the payment of shares and stocks, the company’s management expense ratio is YOY-5.

58pct, the overall cost structure has been optimized.

The increase in the proportion of e-commerce has promoted the growth of receivables, and the proportion of advance receipts has improved.

The 18-year accounts receivable and bills increased by 95% from the beginning of the period, mainly due to the increase in the previous period of e-commerce receivables at the end of the period.

Accounts received in advance accounted for revenue 9.

56%, ten years ago3.

21pct, but under the pressure of the terminal, the pre-collection can still achieve a new high, indicating that the sales momentum of dealers still has room for growth.

In terms of cash flow, the company’s net operating cash flow.

US $ 4.2 billion, basically flat for one year, and the repayments remain benign.

Looking ahead to 2019: The process of channel diversification is accelerating, and land marginal improvement is driving demand.

In 18 years, the company newly developed nearly 200 first-tier dealers and more than 400 terminal stores, further increasing the density of outlets.

At the same time, the construction of the KA channel is also progressing in an orderly manner. It is expected that in the future, the KA channel will accelerate the transformation from brand building to traffic introduction.

E-commerce and engineering channels have also made significant breakthroughs. Among them, e-commerce sales have doubled, and engineering channels have completed more than 10 residential hardcover projects in 18 years.Qijiawang vigorously launched the “retrofitting of old kitchens” project, seeking breakthroughs in the stock market.

The channel layout is expected to realize the accelerated growth of sales in the future.

From January to February 2019, the growth rate of residential completed areas narrowed from -12% in 18Q4 to about -8%. Considering that the construction period of newly started commercial housing during the period of 16-17 years has been extended, the completion scale should correspond to 19In -20 years, from the completion data at the beginning of 19, completion bottomed out and it has been revealed that it will continue to improve the delivery of houses and the demand for kitchen appliances decoration is expected to be boosted.

[Investment suggestion]Considering that brand promotion and KA channel construction will take a certain amount of time, the company’s market is still mainly concentrated in third- and 无锡桑拿网 fourth-tier cities. After 2019, the domestic real estate market will still be based on substitution. The overall demand for kitchen appliances will remain short-term.Under certain pressure, the company’s profit forecast is revised down. It is estimated that the company’s operating income for 19/20/21 will be 16 respectively.



6.6 billion, net profit attributable to mothers was 4



110,000 yuan, EPS is 0.



95 yuan, corresponding to PE18.



04 times, maintaining the “overweight” level.

[Risk Tips]The real estate boom is further down; the construction of the KA channel is less than expected; industry competition is intensifying.