Boss Electric (002508): The net profit of the revenue bucked the trend and the gross profit margin increased by 2.3PCT
Under the downturn of the industry, the revenue of the leading kitchen appliances companies remained stable, maintaining the “Buy” rating company released the 2019 semi-annual report, and the operating income of H1 in 2019 was 35.27 trillion, ten years +0.88%; net profit attributable to mother 6.700,000 yuan, +1 a year.52%.At the same time, the company disclosed three quarterly results forecast, and expected Q1-Q3 net profit to increase by 2-10%.Despite the impact of the overall sluggish demand in the kitchenware industry, the company’s net profit growth remained stable against the trend, and the growth was in line with expectations.Considering that the company’s new products are growing well, the channel expansion effect is significant, and the cost pressure is alleviated, we expect the company’s EPS to be 1 in 2019-2021.72, 2.04, 2.37 yuan, maintaining the company’s “Buy” rating.  Dishwashers, integrated stoves and other new categories performed well and continued to drive growth in the company’s 2019H1 revenue of 35.27 trillion, ten years +0.88%.Among them, the traditional smoke stove products are subject to the decline in industry demand (According to data from China Yikang, the retail sales of the 2019 H1 smoke stove industry are -5.86%, -4.09%) dragged down -1 each year.11%, -1.74%, income is 18.84, 8.5 billion.In other sub-sectors, disinfection cabinets and cabinets maintained rapid growth, and realized revenue2.46, 0.6.1 billion, +8 each year.71%, +21.twenty two%.The company acquired Golden Emperor in June 2018, and the 2019H1 integrated stove contributed 0 revenue.810,000 yuan, which contributed to the company’s overall revenue.Steamer, oven, water purifier, oven and other categories performed weakly, with intervals of -9.14%, -28.30%, -10.75%, -47.11%, income is 1.17, 0.73, 0.40, 0.07 billion.  The decline in raw material prices was positive, with the highest gross margin level 重庆耍耍网 +2.31PCT has benefited from the continuous decline in the cost of raw materials such as copper, aluminum, and plastic since 2019. The company’s cost pressure has eased somewhat, and the cost of its main business in 2019H1 has decreased by -1.88%, achieving a gross profit margin of 54.66%, ten years +2.31PCT.In terms of product splits, the range hood gross margin was 58.54%, ten years +3.48PCT; gas stove gross margin is 55.88%, ten years +2.twenty four%.  Continue to increase channel-side investment, multi-channel stability and company revenue growth in 2019H1 The company continues to increase channel investment, expand optimization and integration of the integrated store system, and actively carry out new channels such as development projects and home improvement.The sales expense ratio is affected by this quarter +0.48PCT, up to 28.07%.R & D and management expenses 6.34%, -0 per year.36PCT.Financial expense ratio quarterly +0.54PCT to -0.84%.The company’s overall period expense rate growth rate +0.65PCT, summed up the company’s net profit attributable to mothers in 2019H16.700,000 yuan, +1 a year.52%.  New products and channel expansions superimposed cost pressure relief and expected to maintain steady growth. Taking into account the company’s new products and new channels and cost pressure relief, we expect the company’s EPS for 2019-2021 to be 1.72, 2.04, 2.37 yuan, as of August 26, 2019, the average PE of comparable companies in the kitchen appliance industry in 2019 is expected to be 16.15x, which is equivalent to the April 18, 2018 issue date of April 18, 2019.The 44x level has been lowered accordingly, and we have accordingly lowered the company’s valuation hub slightly.Considering that the company, as a kitchen appliance leader, has a sound channel layout in the first and second tiers, and at the same time actively promotes new product development and channel sinking, it gradually and continuously grows steadily.0-20.0x PE, corresponding to the target price of 30.96?34.40 yuan, maintain “Buy” rating.  Risk reminders: the competition in the kitchen appliance market is intensifying; the raw material prices are unfavorably fluctuating;