Diou Home Furnishing (002798): The trend of hardcover rooms in the trend of tile ceramic tile bathroom faucet highlights the growth value
Event On July 30, 2019, the company released its semi-annual report for 2019.
2019H1 Diou Home furnishes operating income of 24.
98 ppm, an increase of 30 in ten years.
13%; net profit attributable to mother 2.
33 ppm, an increase of 48 in ten years.
18%; net profit after return to mother 2.
500,000 yuan, an increase of 33 in ten 淡水桑拿网 years.
Among them, the second quarter of 2019 achieved operating income14.
570,000 yuan, an increase of 25 in ten years.
25%; net profit attributable to mother 1.
68 ppm, a 47-year increase of 47.
93%; net profit after deduction to mother 1.
410,000 yuan, an increase of 28 in ten years.
Our analysis and judgments highlight the advantages of the construction ceramics engineering channel, the diversified retail layout, and the continuous increase in performance. In 2019H1, the company’s holding subsidiary, Ossino, achieved operating income22.
460,000 yuan, an increase of 37 from the same period last year.
44%; realized net profit1.
96 ppm, an increase of 28 from the same period last year.
Subversive consolidated amortization costs of 1103.
After 600,000 yuan, the net profit is 1.
The Engineering Department and Oceanox benefited from 20 years of accumulated experience in quality service capabilities and perfect service systems, and not only continued to expand the scale of cooperation with existing customers such as Country Garden, Vanke, Evergrande, etc., and deepened and supplemented customers Agile, Rongsheng, R & F, Xuhui, China Resources Land and other large-scale real estate developers, while cooperating, the report has successively established cooperative relationships with large and medium-sized real estate developers, such as Agile, Helenberg, Hezheng, OCT, Jingrui, Power Construction, and Hongtong.Further consolidate the momentum of rapid development of the company’s tooling business.
On the retail side, Eurosnow has adopted a variety of channel layouts and deep cultivation to accelerate outlet coverage and implement access and service sinking: divide the county-level blank spots through “full network deployment”, and promote the first and second-tier cities to accelerate “urban franchise partners, smart communitiesService store “in-depth layout.
Fully seize more and better entry positions to promote the continued growth of retail channels.
Promote new online and offline retail models, coordinate and unify the development of integration, and at the same time use the engineering service experience accumulated by Oseno for many years to help dealers develop the assembly and tooling market, and provide a new growth model for retail development.
As of June 30, 2019, there were more than 800 ceramic distributors and more than 2,400 terminal stores.
At the same time, the company’s building ceramics business fully implements the “product-leading” strategy, responds quickly internally, and fully implements the “all-category” differentiated and precise R & D plan, continues to upgrade, and actively promotes the breakthrough of launching nine new series of 170 new products in 2019.
Sanitary wares are mainly retail, and continue to deepen the synergy with the engineering business of Ossano. We estimate that the revenue of sanitary wares + acrylic panels of the company in 2019H1 will be 2.
The company’s sanitary business continues to consolidate retail channels, expand sales outlet coverage, and improve dealer quality; actively expand new retail, and continue to deepen cooperation with the Internet, home improvement, and renovation companies; in terms of engineering channels, the company makes full use of Oceanox and tooling customersChannels of cooperation and the establishment of Osonal’s self-operating engineering service experience, actively exploring direct-operating customers, improving sanitary product categories, and laying a solid foundation for rapid entry into the tooling market.
At present, the company’s bathroom direct engineering business has established cooperation with large real estate developer clients including Country Garden, Agile, Longhu and so on.
The profitability continued to improve. Sales and financial expenses increased, resulting in an increase in the expense ratio during the period. In terms of profitability, the company’s gross profit margin for 2019H1 was 35.
46%, an increase of 1 each year.
15pct; net sales margin is 9.
22%, an increase of 1 each year.
13pct. Period expenses cost 24.
97%, an annual increase of 1.
30pct, mainly due to higher sales and financial expense ratios.
Of which selling expenses are 16.
80%, an increase of 1 per year.
70pct, mainly due to the increase in sales revenue caused by the increase in sales expenses; management expenses7.
26%, a decline of 0 every year.
73%; financial expenses 0.
91%, an annual increase of 0.
34%, mainly due to the inclusion of interest rates on loan payments made by Oscino Report.
Long-term production capacity is planned to be 80 million square meters. It is expected that the market share of Oceanox will increase. Oceanox’s current production capacity is distributed in Jiangxi, Guangdong, and Guangxi bases, totaling approximately 50 million square meters. Four production lines in the second phase of Guangxi will start in 2019 and can provide 30 million square meters, the three bases are expected to provide a total of 80 million square meters of throughput, corresponding to 4 billion output value. In the future, the company’s total production capacity can reach 100 million square meters, corresponding to 5 billion output value, plus OEM output value can reach about 7 billion.
Investment suggestion: We expect Diou Household to earn 54 in 2019-2020.
70 ppm, an increase of 26 in ten years.
20%; net profit attributable to mother is 5.
500,000 yuan, an increase of 42 in ten years.
27%, corresponding to a PE of 15.
8x, maintain “Buy” rating.
Risk factors: expansion of real estate sales; increased competition in the industry