Zhou Dasheng (002867) 2018 Annual Report and 2019 First Quarterly Report Review: Steady Performance Growth and Gradual Development Showcase Stores Expected to Speed Up

admin
03/16/2020 0 Comment

Zhou Dasheng (002867) 2018 Annual Report and 2019 First Quarterly Report Review: Steady Performance Growth and Gradual Development Showcase Stores Expected to Speed Up

The report reads that the company achieved total operating income of 48 in 2018.

700 million (+27.

97%), net profit attributable to mother 8.
.

0.6 billion (+36.

16%).

In Q1 2019, the company achieved operating income of 10.

9.7 billion (+17.

04%), net profit attributable to mother 1.

9.4 billion (+20.

81%).

Investment Highlights The 2018 performance has been high-growth, and the franchise is still the main source of revenue. The company achieved revenue in 2018 of 48.

7 billion (+ 28%), realizing net profit attributable to mother 8.

0.6 billion (+36.

2%), deducting non-net profit 7.

500 million (+32.

5%).

In terms of different channels: franchise is still the main source of income.

In 2018, the company’s offline self-employed / online self-employed (e-commerce) / franchise revenue ratios were 23 respectively.

1% / 7.

18% / 66.

67%.

1) Offline self-employment: revenue growth rate of 10.

From the perspective of quantity, in 2018, there was a net increase of 26 self-operated stores, a total increase of 9 compared with the end of 2017.

42%.

From a single store perspective, the single store revenue was 3.97 million yuan (+11.

6%), single store gross profit of 1.19 million yuan (+12.

1%).

From the perspective of category, self-employment is still mainly gold, and the proportion of single store revenue is less than 30%.

2) Online self-employment (e-commerce): income 3.

500 million (+23.

7%), and is expected to gradually sell 45.

40,000 pieces.

From the perspective of categories, e-commerce is dominated by plain gold, and the sales revenue of plain gold jewelry3.

0 billion (88%), with sales of 40.

90,000 pieces (+14.

6%), the average unit price is 749.

71 yuan.
Publication revenue was 43.51 million yuan (12%), and sales volume was 3.
30,000 pieces (+82.

9%), the average price of a single piece is 1314.

43 yuan.

3) Offline franchise: revenue growth rate of 35.

1%. From a quantitative perspective, there was a net increase of 651 franchised stores in 2018, a total increase of 25 compared to the end of 2017.

53%.

From a single store perspective, the single store revenue is 1.18 million yuan, an annual increase of 11.

2%, single store gross profit of 400,000 yuan, an annual increase of 15.

8%.

From the category perspective, the franchise is dominated by the inclusion category, which accounted for 84% of the single store revenue, an increase of 29.

2%.

By category: set as the main source of income.

In 2018, the proportion of company-established / primary gold revenue was 63.

3% / 23.

3%.

In 2018, the company achieved jewellery revenue of 30.

800 million (+33.

2%), income from prime gold products11.

400 million (+15.

2%).

The gross profit margin increased, and the expense ratio rose slightly. The company’s prime in 2018 replaced the gross profit margin by 2 respectively.

76, 1.

13 pcts, driving the company’s comprehensive gross profit margin to increase by 1.

62pct to 34%, the company’s terminal products are still extremely cost-effective.

In terms of expense ratio, the company’s sales expense ratio decreased by 1 in 2018.

1 pct, the management expense rate increases 北京桑拿洗浴保健 by 0.

9 pct, mainly due to the additional incentive costs of 40.7 million yuan.

The growth rate in the first quarter was slightly expected, and the profit growth rate was 20.

In the first quarter of 2019, 81% of the companies achieved operating income10.

9.7 billion (+17.

04%); net profit attributable to mother 1.

9.4 billion (+20.

81%); net profit after deduction to mother 1.

8.5 billion (+23.

16%).

19Q1 asset impairment losses of 22.6 million yuan, a significant increase each year (+438.

85%), mainly due to the provision of inventory depreciation for some prime gold stocks; other income was 37.63 million yuan (+63.

55%), mainly due to the increase in the annual return of diamond purchases.

As of March 31, 2019, the company had a total of 3,457 stores, including 296 self-operated stores, 3,161 天津夜网 franchised stores, and 82 net openings in Q1 2019. The growth rate is slightly optional.
Earnings forecasts and estimates We expect the company’s revenue for 2019-2021 to be 60.
02/73.

46/89.

30 ppm, an increase of 23 in ten years.

25% / 22.

39% / 21.

57%, the net profit attributable to mothers is 10 respectively.

02/12.

41/15.

23 ppm, an increase of 24 in ten years.

35% / 23.

82% / 22.

74%, corresponding EPS is 2 respectively.

06/2.

55/3.

13 yuan, PE is 16.

73/13.

51/11.

01, given the “overweight” rating.

Risk reminders: Gold jewelry consumption is lower than expected, store opening speed is slower than expected, important shareholders reduce risk