Diou Home Furnishing (002798) 2019 Third Quarterly Report Review: Performance Exceeds Expectations, Engineering Business Forces and Profits Continue to Improve

Diou Home Furnishing (002798) 2019 Third Quarterly Report Review: Performance Exceeds Expectations, Engineering Business Forces and 南京夜网 Profits Continue to Improve

Matters: The company announced the third quarter report of 2019, and the revenue for Q1-Q3 of 2019 was 41.

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

47%; net profit attributable to mothers4.

26 ppm, an increase of 57 in ten years.

17%, net profit after deduction of 3.

750,000 yuan, an annual increase of 42.

07%; in the third quarter of 2019, it achieved revenue of 16 in a single quarter.

30,000 yuan, an increase of 28 in ten years.

44%, net profit attributable to mothers1.

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

64%, net profit after deduction to mother 1.

70,000 yuan, an increase of 54 in ten years.

31%, performance exceeded expectations.

Comment: Ossino maintains strong growth and the engineering channel continues to exert its strength.

With the continuous expansion of the market share of self-employed projects and the continuous growth of the retail business, Ossino achieved operating income of 371,349.

780,000 yuan, an increase of 36 from the same period last year.

48%; realized net profit of 37,622.

370,000 yuan, an increase of 38 from the same period last year.

88%, net of consolidated assessment costs 1,655.

After 400,000 yuan, the net profit was 35,966.

97 thousand yuan.

The company is committed to its first-mover advantage accumulated over many years in the self-employed model of the engineering business, which is in line with the development trend of real estate new residential hardcover houses, as well as the retail model innovation and channel sinking layout, and its operating conditions have achieved rapid growth.

Profitability increased steadily, and customers gradually expanded.

The company’s gross profit margin for Q1-Q3 in 2019 was 35.

9%, increase by 1 every year.

4pct, the company’s customers continue to optimize, the company’s net profit for Q1-Q3 2019 is 10.

4%, increase by 1 every year.

8pct; single Q3 company gross margin 36.

7%, increase by 1 every year.

8pct, net interest rate is 12%, which is greatly increased by 2.

9 points.

We believe that as the new and old businesses are rationalized, the profitability level is expected to maintain a steady increase.

The continuous improvement of channel network construction is the basis for long-term development potential.

Bathroom products are mainly based on offline distribution, supplemented by e-commerce, overall home improvement and Internet home improvement, and gradually develop direct engineering business.

Oceanox has established a sales model focusing on tooling customers and dealer customers. On the basis of maintaining cooperation with existing customers such as Country Garden, Vanke, Evergrande, it has added Agile, Rongsheng, R & F, Xuhui, China Resources Land, etc.Large real estate developer clients, while promoting the retail channel layout.

We are optimistic about the coordinated development of the two major businesses of the company and maintain the “strong push” level.

1) On the channel side, Emperor Sanitary Ware and Ou Shennuo are expected to fully complement each other’s existing channels.

2) In terms of production capacity, on the basis of acrylic sanitary ware, Emperor Sanitary Ware will be transformed into Oceano’s position in ceramic products, technology and research and development advantages to supplement ceramic sanitary ware production capacity, and continue to provide financial support to Oceano to help it complete the construction of new production bases.Construction.We maintain that the company’s net profit attributable to the parent for 2019-2021 is 5, respectively.

35, 7.

21, 9.

34 ppm, corresponding to the current market value of PE is 16, 12, and 9 times. Considering the market development ability, maintain the company’s 22 times PE in 2019, the target price of 30 yuan / share, and maintain a “strong push” rating.

Risk warning: the downturn in the macro economy leads to sluggish demand, synergies, and market expansion is not up to expectations.