Fuling Mustard (002507) 2019 Third Quarterly Report 天津夜网 Review: Channel Reform Dividend Released Single Season Growth Rate Revealed

Event: Fuling mustard released three quarterly reports for 2019, achieving operating income of 16 in Q1 to Q3 of 2019.

4.0 billion, +3 per year.

83%; net profit achieved 5.

180,000 yuan, at least -0.

96%; of which the third quarter of 2019 achieved operating income5.

1.8 billion, previously +7.

64%; realized net profit2.

30,000 yuan, at least -6.


  Q3 revenue growth rebounded.

Q1 to Q3 2019 revenue growth was 3.

83%, of which 2019Q3 revenue quarter +7.

64%, up 7 from Q2.

08 tablets

The improvement of the company’s single-quarter revenue growth stems from three aspects. First, since the second quarter, the company has more direct channel sinking targets and more channel sinking efforts. Second, the company’s offices have increased from 34 to nearly 70.In addition, the expansion of dealers in third- and fourth-tier cities is smooth. Third, the company relaxed the credit limit for some dealers, increased the enthusiasm of dealers to obtain goods, and encouraged the increase of blank market coverage.

The accounts receivable of Q3 company rose to zero.

5.2 billion is the highest level in history, which matches the adjustment of the company’s operating policies.

From the perspective of channel inventory, the inventory level of Q3 has been optimized. Although the channel enthusiasm for picking up goods has improved in September, it is expected to be at 1.

Normal level for about 5 months.

  Q3 expenses have contracted, and the net interest rate has improved significantly from the previous quarter: the company’s net interest rate for Q1 to Q3 2019 was 32.

28% a year -1.

58pcts; of which 2019Q3 net profit is 39.

18%, previous / moM-6.

06 / + 10.


1) In terms of gross profit margin, the gross profit margin for sales in Q1-Q3 2019 was 59.

01%, ten years +3.

28 items, of which the gross profit margin of sales in Q3 2019 was 59.

95%, the highest level ever. Q3 began to use green heads produced in 2019 with falling purchase prices, and the dividend of raw material costs continued to decline. 2) In terms of expense ratios, the sales expense ratio of Q1 to Q3 2019 was 18.

74%, ten years +2.

69pcts; of which the sales expense ratio of 2019Q3 is 13.

69%, previous / mom +5.

75 / -8.

44pcts is mainly due to the quarterly adjustment of the channel expense expenditure rhythm. Considering the company’s operating pressure, Q4 expense rate level is expected to continue to rise earlier than Q3.

  The progress of the channel has achieved initial results, and we expect the fundamentals to rebound and bottom out.

Although the company has experienced fluctuations in the 北京养生会所 operating cycle, it has gradually improved through active channels to make up for the company’s lack of channel layout in low-tier cities.

The company’s comprehensive product power, brand power and absolute pricing power, and the reshaping of distribution channels will help the company’s long-term development.

  Profit forecast and investment grade: We maintain the company’s profit forecast for 2019-21 to 7.50/8.


1.4 billion, an increase of 13 each year.

27% / 16.

30% / 16.

36%, the corresponding EPS is 0.



28 yuan, the current sustainable corresponding PE is 24x / 21x / 18x.

Maintain the “overweight” rating.

  Risk reminder: food safety, terminal acceptance is lower than expected after price increase, raw material price fluctuation risk.