Superstar Technology (002444): Interim report performance meets expectations and gradually develops to speed up challenges

Superstar Technology (002444): Interim report performance meets expectations and gradually develops to speed up challenges

2019H1 performance increased by 38.

68%, companies that responded quickly to adverse changes in the external environment 武汉夜生活网 released 19H1 interim reports: 19H1 companies achieved total operating revenue of 30.

3.9 billion + 38 per year.

28%, net profit attributable to mother 4.

4.4 billion + 38 per year.

68%, in line with expectations.

We believe that the reasons for the rapid performance growth include: 1) the overall controllable impact of trade frictions, the optimization of the competitive landscape, the company’s leading position in the field of hand tools and smart products continued to consolidate; 2) the company completed the European Lista in JuneAcquisition, 19H1 LISTA contributed 16.

01% performance growth rate; 3) Since April 19, RMB continued to depreciate.

We believe that by accelerating the pace of branding and transformation, the company can avoid adverse external impacts such as tariff increases to a certain extent, which will help consolidate performance indicators, achieve stable growth, and maintain profit forecasts. It is expected that the company’s EPS in 19-21 will be 0.



92 yuan, maintain “Buy” rating.

Significant achievements in strategic layout, high-speed growth of hand tools business, and abundant cash flow. The company gradually and actively expands new sales channels and new customers at home and abroad through endogenous + epitaxial two-wheel drive. It can target single categories such as LISTA and Prime-Line.The merger and integration of foreign companies has accelerated the process of internationalization.

According to the company’s announcement, the company’s hand tool and power tool business in 2019H1 achieved revenue26.

55 ppm, an increase of 40 in ten years.

63% of which eliminated the consolidation effect of LISTA, and the endogenous growth of the hand tools and power tools business was 16.

98%, higher than 14-18 years of endogenous composite materials10.


2019H1 The company achieved net operating cash flow1.

3 ‰ / year + 45.

47%, abundant cash flow.

Strengthening the building of private brands and enhancing international competitiveness, the gross profit margin increased significantly. The overall gross profit margin of the company in 2019H1 was 35.

17%, an increase of 6 a year.

96 pp, of which the company’s smart equipment business realized revenue3.

6.6 billion +20 per year.

40%, gross profit margin 36.

49%, an increase of 9 a year.

77pp; Hand tools and power tools business achieved gross profit margins of 34.

82%, an increase of 6 a year.

53 pp.

In our opinion, the main reasons are: 1) the company’s depreciation and appreciation in the first half of 19 will settle its profits in RMB; 2) the company is committed to building its own brands, the proportion of its own brands is increasing, and its international competitiveness is increasing.

The construction of overseas bases has accelerated, and the company’s ability to withstand the changes in the international environment of the empire has continued to increase. According to research, in the case of tariff increases, the company plans to achieve overseas supply to some core customers in consideration of the maintenance of long-term cooperative relationships with overseas customers.

The company started construction of a manufacturing base in Vietnam in 2018, and the base is expected to achieve production and supply in 2019Q4.

At the same time, the company is expected to start construction of a Thai factory this year to expand overseas production capacity.

We believe that the company’s overseas base layout and the development of overseas suppliers can improve the company’s ability to resist the adverse effects of the external environment.

The overall layout has taken shape, and the industry leader level is stable. We maintain our “Buy” rating and we maintain our profit forecast. It is expected that Juxing Technology will return to its parent net profit for 2019-2021.


12/9.9.3 billion, an annual increase of 16.

2%, 9.

5%, 8.

9%, three-year compound strength 11.

48%, earnings per share are 0.

78, 0.

85, 0.

92 yuan, corresponding to 14 for PE.



85 times.

The average PE of similar companies in the industry in 2019 is 13.

42 times. Considering that the company’s industry leaders are steadily merging, the 杭州桑拿网 branding and restructuring strategy has begun to take shape, competition and profitability are gradually increasing, and the ability to withstand changes in the external environment is constantly increasing. The growth potential will make the industry level.18 times PE estimates, the corresponding target price is 12.


04 yuan, maintain “Buy” rating.

Risk reminders: economic growth in major overseas markets; exchange rate risk; less-than-expected progress in Vietnam plant operations; increased trade friction; less-than-expected progress in acquisition and integration