Zhibang Household (603801) 2019 Third Quarterly Report Review: Bulk Channels, Rapid Development of Wardrobes Drive Q3 Revenue Growth

Zhibang Household (603801) 2019 Third Quarterly Report Review: Bulk Channels, Rapid Development 淡水桑拿网 of Wardrobes Drive Q3 Revenue Growth

Performance was in line with expectations, and Q3 revenue growth continued to increase month-on-month.

Zhibang Household disclosed the third quarter report of 2019 on October 29, and achieved revenue of 19 in the first three quarters.

58 ppm, an increase of 12 in ten years.

92%, net profit attributable to mother 2.

US $ 3.3 billion, an annual increase of 14.

49%.

Achieve operating income in the third quarter alone8.

09 million yuan, an increase of 16 in ten years.

94%; net profit attributable to mother 1.

23 ppm, an increase of 13 in ten years.

06%.

The overall performance exceeded expectations and single-quarter revenue growth continued to increase.

  The retail channel is stable and the bulk business maintains high growth.

Revenue from distribution channels 天津夜网 in the first three quarters13.

300 million, an annual increase of 8.

1%; direct sales channel 1.

1 billion, an annual increase of 8.

5%, bulk business 3.

3.9 billion, an annual growth of 35%, overseas business 87.8 million, an annual growth of 28%.

Q3 single season distribution channel 5.

700 million, an annual increase of 12.

7%; 53.71 million direct sales channels, an increase of 21 throughout the year.

9%; Bulk business sector 1.

2.8 billion, an annual growth of 58%, overseas business 23.27 million, at least 18% per year.

The current industry growth trend, competition in the retail channel is intensifying, and the company has developed earlier in the bulk business channel. It currently maintains high growth and fully enjoys the bonus of real estate hardcover housing policy.

  The closet business increased rapidly and became a new driver of growth.

The company’s cabinet revenue in the first three quarters of 14.

0.9 billion, basically the same as last year; wardrobe 4.

75 billion, a year-on-year growth of 68%; the third quarter of the single-quarter cabinet business5.

500 million, an annual increase of 3.

39%; wardrobe business 2.

2.7 billion, a year-on-year increase of 70%.

At the end of the third quarter, the closet business accounted for 24% of revenue. Under the background of the rapid growth of the closet business, it has become a new growth driver. The closet business is in a period of rapid growth. At present, it is mainly dependent on volume growth.
  Investment suggestion: Considering that the real estate recovery is still not obvious in the custom home retail end, lower the company’s 19/20/21 revenue to 27.

9/32.

03/36.

$ 8.3 billion, the company’s net profit to 3.

12/3.54/4.

04 ppm, corresponding to PE 15/13/11 times, maintaining the overweight rating.

  Risk warning: real estate risk, raw material price fluctuation risk, increased competition in the industry, etc.