Boss Electric (002508) Annual Report Comments: Adversity eases new categories and attempts to continue heavy volume

Boss Electric (002508) Annual Report Comments: Adversity eases new categories and attempts to continue heavy volume
Facing the adversity, the kitchen faucet has achieved steady growth and maintained a “Buy” rating. On April 24, 2019, the company disclosed its 2018 annual report and 2019Q1 quarterly report. The growth rate of net profit in 2018 was in line with our expectations. Total operating income in 2018 was 74.25 trillion, +5 for ten years.81%, net profit attributable to mother 14.74 trillion, ten years +0.85%, after deducting non-return to the mother’s net profit for five years.56%.2019Q1 total revenue 16.60 ppm, ten years +4.30%, net profit attributable to mother 3.20 trillion, +5 for ten years.84%, plus 8 for the next ten years.55%.The company intends to distribute a cash dividend of 8 yuan (dividend reorganization 51) to all shareholders for every 10 shares.5%).We expect the company’s EPS to be 1 in 2019-2021.72, 2.04, 2.37 yuan, maintaining the company’s “Buy” rating. The growth rate of kitchen appliances revenue improved, and new categories continued to increase. In 2018, the company’s total operating income was 74.25 trillion, +5 for ten years.81%.2019Q1 total revenue 16.60ppm, +4 per year.30%, a significant improvement from the previous quarter (the fourth quarter of 2018 revenue +0.08%).Among them, in 2018, the demand for oil stoves to reduce the traditional three major pieces is weak, +5 each year.00%, -1.65%, +2.27%, income is 40.13, 17.92, 5.00 trillion, in other segmented businesses, steam box, dishwasher, water purifier led the growth rate, increased by +37 respectively.82%, +54.62%, +131.04%, income reached 2 respectively.59, 1.05, 0.84 trillion, the growth rate of the oven and oven business was weak, respectively extended by +9.98%, -24.87%, income is 1.90, 0.2.1 billion.The company acquired Golden Emperor in June 2018, and the integrated stove contributed 0 revenue in the second half of the year.9.7 billion.The reputation of the subsidiary contributes revenue 2.9.4 billion. Cost pressures eased, optimistic 杭州桑拿 that gross profit margins will rise in 2018. The prosperity of the kitchen appliance industry will decline, and product prices will increase and kinetic energy will improve and decline.95%, +3.88%), and the price of raw materials remained high, the company’s profitability was affected.Gross profit margin for 2018 was 53.52% every year -0.29PCT.In terms of products, the range hood gross margin was 57.16% a year -1.05PCT, gross margin of gas stove 55.14% a year -1.50PCT.Since 2019, the pressure on raw material costs has eased, and the warming of real estate has driven the demand for kitchen appliances.79%, ten years +2.47%. The average price of dual brands increased the expansion of sales channels, relying on stable revenue growth of the channels. In 2018, the company’s boss brand increased the expansion of third- and fourth-南京桑拿网tier cities, and brand outlets added coverage, and the sales expense ratio reached 25.72%, ten years +1.81PCT.Affected by the technology-driven strategy, the company’s R & D expenditures3.95%, ten years +0.63%.At the same time, affected by the increase in interest income and income from holding wealth management products, financial expenses in 2018 were -1.10,000 yuan, investment income reached 0.8.8 billion yuan. Channel expansion consolidates the scale of revenue, and is optimistic about the growth elasticity of future market demand after warming. Considering the company’s channel expansion effect and the relief of cost pressure, we expect the company’s EPS to be 1 in 2019-2021.72, 2.04, 2.37 yuan (average 1 before 2019-2020).67, 2.05 yuan), as of April 25, 2019, with reference to comparable companies in the kitchen appliance industry in 2019, the average PE is expected to be 18.44x, changes in industry demand have eased improvement. At the same time, considering that the company as a kitchen appliance leader has a perfect channel layout in the first and second tiers, it also actively promotes new product development and channel sinking, and integrates the growth of the kitchen appliance market after its warming.elasticity.The recognition is given to the company on 20th of 2019.0-22.0x PE, corresponding to the target price of 34.40?37.84 yuan, maintain “Buy” rating. Risk reminders: the competition in the kitchen appliance market is intensifying; the raw material prices are unfavorably fluctuating; the real estate cycle impact is greater than expected.