Shuijingfang (600779): A good start to set the tone slightly and sort out the increase

Shuijingfang (600779): A good start to set the tone slightly and sort out the increase

The company disclosed its annual report and quarterly report. The sub-high-end well platform and Zhennong No. 8 maintained high growth. 19Q1 revenue was in line with optimistic expectations. Profits significantly exceeded expectations.

In 19 years, expenses continued to be high, and the off-season price system management and inventory management will determine a gradual increase.

We slightly adjust the EPS forecast for 19-20 to 1.

53 and 1.

83 yuan, under the background of foreign control disks, 20 years 30 times PE, a 54-year target price of 54 yuan, maintaining the “strong recommendation-A” rating.

The 18-year annual report is in line with the forecast, and the sub-high-end core price band has maintained a high increase.

The company achieved operating income of 28 in 18 years.

1.9 billion, net profit attributable to mother 5.

8 billion yuan, an increase of 37.

6% and 72.

7%, in line with the previous performance forecast.

Among them 18Q4 income 6.

8 billion, net profit attributable to mother1.

1.7 billion, an increase of 17.

9% and 26.

7%, 18 years of steady decline in growth rate.

In terms of product structure, sub-high-end well platforms and Zhennong No. 8 core products have increased by 43% in 18 years, and high-end green and archives have increased by 42%, driving the gradual increase in gross profit margin.

2pcs to 81.

9%, initial selling expense ratio 30.

3%, a substantial increase of 3.

4pcts, which are mainly launched online, continued spending on core store building, and expansion of the sales team under the new general-generation model (18 years of sales staff increased from 89 to 411).Management expense ratio decreased by 1.

4pcs to 9.

6%, with an average net profit of 20.

6%, a stable net interest rate level above 20%.

Indicators such as sales receipts and operating net cash flow for 18 years remained healthy.

19Q1 revenue was in line with optimistic expectations, and profits significantly exceeded expectations.

The company achieved operating income of 9Q1.

3 billion yuan, net profit attributable to mother 2.

1.9 billion, an increase of 24.

3% and 41.

2%, the income side was in line with expectations, and the performance side was significantly higher than expected. Among them, the second-end high-end well platform and Zhenjing No. 8 core products increased by 30%, in line with the increase in grassroots research expenses and the steady sales of the Spring Festival.

Single quarter gross margin of 82.

6%, at least 1.

8pcts, selling expense ratio 29.

8%, down 2 every year.

3 pieces, the absolute amount of sales expenses still increased by 15% to 2.

7.7 billion yuan, the administrative expenses rate fell by 1.

7pcs to 5.9%, amplifying the elasticity of performance together.

Working capital projects remained stable and cash flow indicators were good.

The 19-year target plan seeks progress steadily, the costs continue to be high, and the off-season carding will determine the vertical increase.

The company’s annual report officially disclosed 19 years of revenue growth of 20%, profit growth of 30% planning goals, in the context of the company’s volume enlarged to about 3 billion mark, and the second high-end restorative and highly flexible dividends have been realized, the company’s goals set a steady job searchWe think it is more time-sensitive.

According to recent grassroots research feedback, the company still maintains new product transmission speed promotions such as Jingtai Silk Road Edition in the off-season of the core market, which further verifies our judgment of 19 years of intensified competition in high-end price bands and increased costs (except Shuijingfang, the recent Yanghe Blue 厦门夜网 Classic,Promotions such as Lang Jiu Hong Hua Lang also increased).

In our previous report, the developer’s sub-high-end price band entered 19 years under the background of a high base and high target. The situation in the first quarter still maintained a steady increase. Whether the current low season can smoothly manage the price system and inventory management will determine the increase this year. We look forward to the company ‘s focus on ” 5+ 5 + 5 ”market space to further strengthen core stores

0 Build and drive continuous growth.

Investment suggestion: The potential for sustained growth still exists, with a one-year target price of 54 yuan, maintaining the “strongly recommended-A” rating.

The company’s long-term growth in the first quarter has a good tone, and the goal is steady and striving for progress. Only 天津夜网 in the off-season, the company can smoothly sort out and realize the sustainable growth potential of the core market.

Against the background of the major shareholder Diageo’s continuous overweighting (the shareholding ratio has reached 63 after the latest tender offer).

14%), the company estimates total support.

We slightly adjust the EPS forecast for 19-20 to 1.

53 and 1.

83 yuan (1 last time).

50 and 1.

79 yuan), giving 30 times PE for 20 years, 54-year target price of 54 yuan, maintaining “strongly recommended-A” rating.

Risk warning: demand falls, price system gets out of control, and competition intensifies