Jiuyang Co., Ltd. (002242): Implementation of strategic transformation and upward business cycle

Jiuyang Co., Ltd. (002242): Implementation of strategic transformation and upward business cycle

The operating conditions have been gradually improved, and a high percentage of dividends have been given back to shareholders.

In 18 years, Jiuyang achieved revenue of 81.

6.9 billion yuan (+12.

7%); net profit attributable to mother 7.

5.4 billion (+9.

5%), net profit after deducting non-return to mother 5.

6.9 billion (-6.


Although the main reason for the acceleration of 18Q4 revenue growth (+ 25%) was the shift in the stocking time of Double 11 from the previous September to mid-October, the growth rate of 18H2 revenue (+13).

8%), which is 2.18% higher than 18H1.

5pcts is still showing that the company’s operating conditions are in an upward cycle.

Jiuyang plans to pay a cash dividend of 8 yuan (including tax) for 10 shares, and the annual cash dividend ratio will reach 81%.

Multiple gradual growth momentum is igniting growth momentum. It is expected that revenue growth in 19 years will be 10% -15%.

18 years of food processing series, nutrition pot series, Western-style home appliances revenue growth rate of + 8% / + 19% / + 21%, farewell to 17 years of short-term stall (+3% /-4% / + 6%).
The reason is that the offline channel adjustment has dragged down the growth ability of 17 years, but we should pay more attention to the effective changes of Jiuyang in the product and marketing end in the past two years: (1) Strategic end transformation: First, positioning “Jiuyang = qualityThe category of “small household appliances” is expanding. At present, the revenue of soymilk machines accounts for more than 25%, and the growth rate of wall breakers is as high as 40% -50%. It has become a large category with revenue of more than 1 billion US dollars.For the export of sharks, the domestic sales growth rate still exceeds 10%), and the income of western-style small appliances is 10%.

800 million US dollars, of which water purifiers increased by more than 50%; Second, hand in hand with shark ninjas cut into the vacuum cleaner market while selling products overseas, the growth rate of Jiuyang’s export sales in 2018 exceeded 100%, mainly due to shark-related purchases (1.

900 million), the purchase amount in 19 years is expected to 深圳桑拿网 increase to 4.

500 million.

(2) The product side catches the pain point. Explosives frequently appear: Technology research and development is the core competitiveness of Jiuyang. In recent years, innovative varieties such as no-clean soymilk / wall breaking machines and silent wall breaking machines have been recognized by the market.

(3) Channel-side deactivation + branding presentation: offline dealers streamlined to 300 and expanded their operational capabilities and execution efficiency to maximize; build a branded marketing network on the basis of more than 40,000 sales terminals, newly openedDozens of stores in the shopping center “Jiuyang House”, dozens of brand flagship stores, brand specialty stores and other stores.

Looking to the future, adherence to the strategy of creating value and ascending the value of brand marketing will help the company develop steadily. It is expected that the company’s revenue growth rate will be 10% -15% in 2019.

Changes in product structure have led to a decline in gross profit margins, and tight demand has helped the subsequent growth.

The company’s gross profit margin in 2018 was 32.

1% (-0.

9pcts), of which the gross profit margin of food processing series / nutrition pots / western appliances dropped -1.

6 / -0.

4 / + 2.

3 pcts, the same internal inherent gross profit structure change of the first two: (1) the growth rate of relatively low-margin wall breaking machines in the food processing series is much higher than the soymilk maker with pricing power;Its gross profit margin is lower than domestic sales.

Initial selling expense ratio +1.

8pcts, but high-intensity brand publicity (CCTV advertising, Youku cooperation, etc.) can help improve brand awareness and value, the management expense rate and financial expense rate are basically stable, and the non-current asset disposal income in non-recurring gains and losses is earlier. 17Increase by 1.

At 86 ppm, the net profit attributable to mothers is reduced by 0.


In the balance sheet, observe the advance accounts + 196%, inventory goods + 41%, receivables + 39% available products, demand is tight, dealers make active payments, manufacturers prepare stocks as needed and relax account periods to support, this willProvide strong guarantee for the growth of 19H1.

The leader in high-quality small appliances re-launched and upgraded to a “buy” rating.

Jiuyang has no interest-bearing debts since its listing. Its own funds / total assets have been greater than 30% for a long time. In 2010-18, it gradually paid dividends / accumulated net profit was close to 80%. The average diluted ROE in the past three years was close to 20%.The pension insurance fund increased its shareholding ratio, and Central Huijin’s shareholding ratio was also high (4.


It is expected that the company’s net profit attributable to its parent in 2019-21 will be 8.
3, 9.
6, 10.

90,000 yuan, the current sustainable PE is 21.

3, 18.

5, 16.

2 times, upgrade the company to “Buy” rating.

Risk warning: category expansion is less than expected, and raw material prices have risen sharply.