Jiuyang (002242): Q3 revenue grows steadily, new products boost profit

Jiuyang (002242): Q3 revenue grows steadily, new products boost profit

Event On October 30, 2019, Jiuyang shares released the third quarter report of 2019.

The company’s total operating income in Q1 2019 was 62.

55 ppm, an increase of 15 in ten years.

02%; net profit attributable to mother 6.

18 ppm, a ten-year increase of 8.

54%; net profit attributable to non-attributed mothers5.

830,000 yuan, an increase of 25 in ten years.

2%.

In terms of quarters, the company achieved revenue of 20 in Q3.

68 ppm, an increase of 14 in ten years.

98%; realized net profit attributable to mother 2.

12 ppm, a six-year increase of 6.

35%; net profit attributable to non-attributed mothers2.

50,000 yuan, an increase of 18 in ten years.

68%.

Brief Comment 1. The small household appliance industry experienced a slowdown in Q3. New products boosted the steady growth of Jiuyang’s revenue. Q3 The small household appliance industry’s growth has increased., Ten years down 3.

5%, of which Q3 declines by 13 each year.

3%, online, line declines were -9.

9% vs. -17.

9%.

In terms of categories, Q3 small home appliances performed well with an overall growth rate of 23.

4%; kitchen and environmental small appliances performed poorly, with a decrease of about -5.

5% vs. -7.

6%, of which the soymilk and juicer lines decreased by -2.

0% vs. -36.

7%, the wall breaking machine as a newer category of soybean milk machine grows better.

Faced with industry pressure, Jiuyang relies on innovation to lead domestic and foreign sales, and its revenue continues to grow steadily. The company’s total operating revenue in Q1 2019 was 62.

5.5 billion, an increase of 15 in ten years.

02%, higher than the overall industry performance.

Q3 operating income grew at a rate of 14 in ten years.

98%, Q2 (15.

3%) were basically the same. Among the sub-categories, the growth rate of Q3 single-season wall breakers was about 20%. The combined increase of rice cookers and pressure cookers was close to double-digit growth, leading the overall steady growth of small kitchen appliances.

2. Profitability has improved, and sales expenses are reasonably controlled. The company achieved net profit attributable to its mother in the third quarter of 2019.

12 ppm, a six-year increase of 6.

35%; net profit after deduction is 2

50,000 yuan, an increase of 18 in ten years.

68%, affected by the 18Q3 non-recurring profit and loss base, the growth rate of deductions is faster than overall profit growth.

The company’s consolidated gross profit margin for the 19Q1-3 period was 32.34%, a decline of 0 every year.

06pct, Q3 single quarter gross profit margin is 32.

35%, an annual increase of 1.

At 23pct, the increase in gross profit margin was due to the increase in the proportion of new products with high gross profit and the contribution 杭州夜网论坛 of raw material cost dividends.

19Q1-3 Company selling expenses 14.

32%, a decline of 2 per year.

01pct, mainly due to the high cost base of the 2018 World Cup marketing; Q3 single-season sales expenses13.

32%, a decline of 0 every year.

91 points.

The 19Q1-3 management expense ratio (including research and development) is 7.

44%, an annual increase of 0.

58pct; Q3 single season management fee 7.

88%, an annual increase of 0.

36 points, mainly due to the increase in the salary of management personnel and the corresponding office travel, amortization of equity incentives.

19Q1-3 financial expenses expense -0.

11%; annual growth of 0.

18 points, mainly due to the decline in exchange income.

3. R & D pushes new steps step by step. In terms of online and offline channels and expanding products, 杭州桑拿网 Jiuyang continues to increase R & D efforts, maintains a new pace of innovation, and leads the development of the industry.

Q1-3 company’s R & D expenses temporarily increased by 8 in 2019.

76% to 2.

1.1 billion.

Following the launch of three new soymilk machines such as the Y88 automatic cleaning wall breaker and K series in the first half of the year, Q3 continued to launch a new generation of self-cleaning steam rice cookers to refresh the user experience.

In terms of cooperation, the company continued to jointly innovate with SharkNinja, expand diversified and intelligent product line construction, and strengthen synergy.

In terms of channels, the company integrated online and offline channels, and built a three-dimensional channel network steadily.

On the Internet, the company actively embraces new media marketing, and cooperates with large traffic V to promote products through Taobao live broadcast and WeChat promotion.

In the first half of the year, the company officially launched the “Joyoung Jiuyang Official Flagship Store” business that directly operated the Tmall platform, realizing offline experience, online ordering, nearby delivery, and door-to-door service and other brand-new O2O shopping experiences.

Offline, the company continued to strengthen the expansion and construction of “Shopping Mall” and “Jiuyang House” and other brand stores; at the same time, it strengthened communication with consumers and promoted the recognition of Jiuyang brand through parent-child activities, referrals, health lectures and other activitiesdegree.

In addition, according to the individual needs of different consumer groups, Jiuyang focused on launching targeted products and services, and its market share has steadily increased.

4. Inventories and receivables have improved. In terms of operating cash flow and increased inventory, the company’s inventory in 1Q1-3 increased compared with the same period in 18 years. The company’s inventory was 7 at the end of the third quarter.

08 million yuan, an increase of 21 over the same period last year.

64%, the inventory turnover days increased by 6 days to 46 days.

In terms of accounts receivable, in 19Q1-3, the company’s accounts receivable increased by 114 compared with the same period last year.

82% to 4.

8.1 billion, with a turnover of 14 days, an increase of 5 days over the same period last year, and the overall level is at a reasonable level.

The operating cash flow was significantly improved, and the company achieved operating cash flow in 19Q1-3.
.

22 trillion, an increase of 120 compared with the same period last year.

33%, of which Q3 achieved operating cash flow in a single quarter7.

450,000 yuan, an increase of 282 in ten years.

4%, mainly due to the increase in income and the contribution of receivables.
Investment suggestion: We estimate that Jiuyang’s net profit attributable to mothers will be 8 in 2019-2020.
35 billion, 9.

6 billion, an increase of 10 in ten years.

71%, 15.

02%, corresponding to PE of 23.

62, 20.

53 times, maintaining the “overweight” level.

Risk reminders: sales of soymilk machines fall; emerging small household appliance categories are hit; raw material prices rise.

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