Oupai Home (603833): Diversified Channels Facilitate Rapid Growth in Business Performance Hengqiang

03/18/2020 0 Comment

Oupai Home (603833): Diversified Channels Facilitate Rapid Growth in Business Performance Hengqiang

1H19 results are in line with our expected 1H19 results: revenue 55.

100 million, an increase of 13 in ten years.

72%; net profit attributable to mother 6.

330,000 yuan, corresponding profit1.

51 yuan, an annual increase of 15%, deducting non-net profit of 5.

95 ppm, an increase of 15 in ten years.

7%, in line with our expectations.

Among them, Q1 / Q2 revenue increased by 15.

6% / 12.

5%, net profit attributable to mothers increased by 25.

1% / 13.


Development trend 1. In the first half of the year, revenue maintained rapid growth and market share continued to increase.

In the first half of the year, the company’s revenue increased by 13.

72%. Against the background of the growth rate of the household industry and a high base last year (1H18 revenue growth of 25%), the company still achieved faster growth than the industry level, mainly due to: 1) multiple channel models to seize market share, After the distribution store continued to sink, in the first half of the year, the number of cabinets / closets / wooden doors / bathrooms / opinli stores increased by 54/127/52/30/47 to 2330/2240/877/589/982.7000, expanding the development of diversified channels, the number of top 100 real estate companies in the 2B engineering business has increased to 47, and it is expected that the revenue of major business will grow brightly, and the large home furnishing business will be gradually accelerated.There are 210 large-scale home furnishing stores and 43 large-scale customers. 2) The large-scale home furnishing product line continues to develop. In the first half of the year, we expect the number of cabinets to increase, the number of wardrobes to continue to grow by more than 20%, and wooden door / bathroom categories to grow rapidly.

2. Profitability remained at a high level and cash flow increased significantly.

In the first half of the year, the company’s gross profit margin increased by a maximum of 0.

4ppt to 37.

6%, mainly due to the increase in efficiency at the production end; the sales expense ratio decreased by 0.

5ppt to 11.

2%, the cost is properly controlled, and the management + R & D expense ratio is increased by 0.

7ppt, mainly due to a 33% increase in R & D investment, with a net interest rate of 11 under the combined impact.

5% is basically flat.

Net cash flow from operating activities in the first half increased by 87% to 10.

1.5 billion, the proportion of advance receipts increased by 1 at the beginning of the period.

5.5 billion to 14.

32 trillion, report quality remains excellent.

3, optimistic that the company relies on channels, product moats continue to seize the market share trend.

Facing the intensified competition in the home furnishing industry, the company expanded more diversified channels for development. We expect that the sales of self-contained home furnishings will contribute about 800 million in 2019, and the 2B engineering business will maintain rapid growth. The product end continues to extend the large home furnishing product line.In 2019, the categories of wardrobes, wooden doors, and sanitary wares maintained healthy and rapid growth. We are optimistic about the company’s trend of being a strong leader in the custom home industry.

Earnings forecasts and projections maintain 19/20 earnings forecasts.


35 yuan unchanged.

Currently corresponds to 25 of 2019/2020.

3 times / 21.

1x price-earnings ratio.

Maintain Outperform rating and 136.

A target price of 00 yuan corresponds to 30.

5x 2019 P / E ratio 杭州桑拿网 and 25.4 times 2020 price-earnings ratio, compared with the previous inclusion of 20.

6% upside.

Risky real estate forecasts exceeded expectations and raw material prices rose.