Zhejiang Meida (002677): Growth momentum continues in weak markets, profitability is basically flat
The growth momentum in the weak market continued, and the profitability was basically flat. In the first three quarters of 2019, the company achieved total operating income11.
400 million (+22.
4%), gross profit 6.
0 million yuan (+25 compared with the same period last year).
1%), gross profit margin 52.
5% (+ 1% year-on-year.
1 pct), net profit attributable to mother 3.
0 million yuan (+23 compared with the same period last year).
1%), corresponding to a net interest rate of 26.
7% (+0 year-on-year.
Q3 single quarter total revenue 4.
400 million (+18.
1%), gross profit 2.
200 million (+16 year-on-year.
5%), gross margin of 50.
7pct), net profit attributable to mother 1.
200 million (+20 compared to the same period last year).
4%), corresponding to a net interest rate of 27.
9% (+0 year-on-year.
Overall, the completion of the real estate delivery cycle has continued to be sluggish after the extension of the delivery cycle. According to the National Bureau of Statistics data, the completion of commercial housing in the first three quarters of 2019 3
3.1 billion square meters (YoY-8.
5%), of which the third quarter was completed in a single quarter1.
01 billion square meters (YoY-0.
The penetration rate of integrated cookers in the context of weak demand for kitchen appliances has increased, achieving growth beyond the overall kitchen appliance industry, and the company continues to benefit as a segment leader.
Q3 single quarter expense control improved, advance receipts decreased slightly from the uplink, the company’s sales / management / R & D / financial expense ratios in the first three quarters of 2019 were 14 respectively.
0% / 4.
5% / 3.
5% (+2 year-on-year.
6pct / -1.
8 points / +0.
5 points / -0.
1pc), in which the corresponding expense ratios in the third quarter were 10 respectively.
0% / 4.8% / 2.
5% / -0.
3% (-1% year-on-year.
4 points / -0.
2pct / +0.
2pct / +0.
On the whole, the company ‘s gross profit margin improved in the first three quarters in the context of easing cost pressures. Costs decreased but the increase in profitability remained basically the same; Q3. Gross profit margin decreased in the third quarter compared with the previous quarter, but expenses were controlled and single quarter profitabilityIt’s basically flat.
At the same time, it will be terminated until the end of the 2019Q3 quarter.
7.8 billion (QoQ + 20.
7%) Dealers are still active in making payments.
Profit forecast and investment rating We believe that the kitchen appliance industry has determined the growth space in the long-term dimension. The industry characteristics of low penetration and high growth of integrated stoves give the company the opportunity to give full play to its first-mover advantage and help it enjoy the industry growth dividend;The recovery in demand from the centralized delivery of completed projects in the future will also benefit the industry and the company.
It is estimated that the company’s net profit attributable to the parent in 2019-2021 will be 4 respectively.
80,000 yuan, the annual growth rate was 19.
3%, the latest closing price corresponds to 19 in 2019 PE.
0x, taking into account the estimates of comparable companies and the growth rate of performance, give PE20 in 2019.
0x, corresponding to a reasonable value of 14.
0 yuan / share, maintaining the “overweight” rating.
Risks suggest that the real estate boom continues to decline; the expense and expense harvest is less than expected; and the industry competition pattern is deteriorating.