Event: The company released a semi-annual report, 2017H1 realized revenue of 2.49 billion yuan (+49%), and net profit of returning home was about 290 million yuan (+47.2%); among them, Q2 realized revenue of 1.53 billion yuan (+49.4%), returning to mother The net profit was 220 million yuan (+47.3%), and the performance exceeded market expectations. According to the company's announcement, it is expected that 2017Q1-Q3 will achieve a net profit of 5.3-6.1 billion yuan (+30%-50%).
The main business continues to exert strength, store expansion + order volume to enhance the company's performance. (1) The company's 2017H1 performance is beautiful: 2017H1 custom wardrobe business (including household goods) realized revenue of 2.21 billion yuan, a substantial increase of 42.8% year-on-year, monthly average order production volume reached 160,000 orders, capacity utilization rate of 85%, customer unit price reached 9400 Yuan, gross profit margin of 38.9%, unchanged from the same period last year, basically hedged the impact of rising costs; custom cabinet business achieved revenue of 270 million yuan, an increase of 142%, gross margin of 15.2%, a substantial increase in profitability led to an overall gross profit margin increased to 36.25 %(+0.59pp). With the gradual expansion of the scale, it is expected that this year's cabinets will reach 800 million, and gradually break even. (2) There were 250 newly opened stores in 2017H1, the total number expanded to 2150, the proportion of prefecture-level stores accounted for 31%, the coverage of fifth-tier cities reached 50%, and the number of customers in the first half of the year reached 235,000, an increase of 20.4%. In the later period, it is expected to continue to benefit from the inventory of third- and fourth-tier commercial housing. The expansion of the store + the growth of orders will continue to enhance the scale effect and enhance the company's profitability.
The scope of business has expanded smoothly, and employee stocks have demonstrated their determination to develop. (1) The company has expanded its curtains and wooden door production lines while developing custom cabinets. In April 2017, it invested 51% to establish Sophia Huahe Door Industry Co., Ltd., and the company's production line will have 450,000 wooden door products and 12 after production. The production capacity of 10,000 square meters of wooden window products, corresponding to the production capacity of 1 billion yuan, 2017 H1 company custom wooden door stores about 280 (mainly Huahe original channel). In the second half of the year, Sofia plans to open 100 new wooden storefronts. The wooden door business will form a strong relationship with the existing wardrobe and cabinet business. At the same time, the company began to enter the curtain business this year, actively extending the product line, firmly implementing the big home strategy and expanding the growth point. (2) The company announced the 2017 employee stock ownership plan on August 13. The total amount of funds to be raised does not exceed 280 million yuan, covering the directors, supervisors, senior management personnel and most of the core personnel of the company. Further boost the company's development confidence.
Earnings forecasts and investment advice. The company firmly implements the big home strategy, and the multi-business synergy effect is significant. It is expected to cross the influence of the real estate cycle and consolidate its leading position. It is estimated that the company's EPS for 2017-2019 will be 1.06 yuan, 1.49 yuan and 2.04 yuan respectively. Considering the 35 times valuation of the customized industry and the company enjoys a leading premium, the company will give 45 times PE in 2017 and the target price is 47.7 yuan, maintaining "buy". Rating.
Risk warning: terminal sales are less than expected risks; management risks brought about by excessive expansion.
HEBEI DOUDOU METAL FENCE PRODUCTS CO.,LTD. , https://www.security-fencing.com