Wo Le Home (603326): Performance of Lili’s bulk business continues to grow

Wo Le Home (603326): Performance of Lili’s bulk business continues to grow

The event company released the 2019 third quarter report: 2019Q1-Q3 company achieved revenue9.

25 trillion, +24 a year.

06%, net profit attributable to mother 0.

98 ppm, +47 for ten years.

04%, deducting non-net profit of 0.

8.3 billion, +35 a year.

twenty one%.

Net operating cash flow of 820,000, ten years -97.

04%, which was mainly due to the longer repayment cycle brought by the rapid growth of bulk business.

Q1 / Q2 / Q3 single quarter revenue was 1.

85, 3.

41, 3.

99 ppm, +22 a year.

64%, 23.

1%, 25.

57%, net profit attributable to mother 0.

01, 0.

45, 0.

53 trillion, ten years +116.

22%, 89.

12%, 12.

22%, deducting non-net profit -0.

06, 0.

39, 0.

490,000 yuan, at least -7.

7%, +79.

52%, +10.


Opinion: According to different channels, the bulk business is growing rapidly.

The company’s Q1-Q3 revenue exceeds 24%. We estimate that the bulk end contributes about 18% and the retail end contributes about 6%.

The company continues to strengthen cooperation with real estate developers TOP50, and its bulk business continues to grow rapidly, more than + 200%.

The retail side as a whole has maintained a positive growth for a long time. During the two-year period of cabinet retail, the whole-house custom retail side maintained rapid growth.

In terms of different products, large volume drives cabinet growth, and the customization rate of the whole house is growing fast.

We estimate that the annual growth rate of cabinets is about 20%, mainly due to bulk channels. After excluding bulk, the retail end of cabinets gradually declined, but the decline was slightly narrower than the first half.

The company continued to open stores, enriched product support, increased customer unit prices, and driven rapid growth in house-wide customization.

Benefiting from intelligent production and product upgrades, gross profit margin increased.

Gross profit margin from the first quarter to the third quarter of 2019 is ± 6.

22pct to 43.23%, net margin +1 per second.

66 points to 10.

63%, period rate growth rate +4.

43 points to 30.

1%, sales, management, research and development, and financial expense ratios are 22 respectively.

99%, 4.

15%, 2.

94%, 0.

03%, up +5 respectively.

81, -1.

04, -0.

38, +0.

04 points.

Q3 single quarter gross profit margin 44.

06%, ten years +3.

95pct, net interest rate 14.

79% a year -1.

57 points.

The increase in gross profit margin mainly benefited from the increase in production efficiency and product upgrades brought by the new plant in Lishui.

The selling expenses have increased greatly for the major department companies, increased the advertising of light boxes 青岛夜网 for the spokespersons of high-speed railway stations, and supplemented the rent and personnel costs brought by Shanghai and Wuxi directly-managed cities.

We expect the company’s EPS for 2019-2020 to be 0.

55 yuan, 0.

71 yuan, corresponding to 23 PE for 2019-2020.

06, 17.

92 times, the company’s whole-house custom business continued to advance, bulk business grew rapidly, intelligent production reduced costs and increased efficiency, and maintained a “buy” rating.

Risk warning: The real estate boom is lower than expected, and business promotion is lower than expected.