Vantage Holdings (002035): Quarterly Report Meets Expected Transformation, Accumulating Power in the Future

Vantage Holdings (002035): Quarterly Report Meets Expected Transformation, Accumulating Power in the Future

The results of the third quarter report are in line with expectations, and the adjustment strategy is designed to save the future.

Vantage’s revenue for the first three quarters was 42.

800 million (yoy-8%), net profit attributable to mother 5.

200 million (+ 17% year-on-year), of which 19Q3 revenue and net profit exceeded -9% and + 20%. Facing the industry trough and new retail shocks, the company insisted on focusing on products + enhancing brand image + promoting retail transformation and actively adjusting business strategiesPromote management progress, seek internal benefits, and empower the next round of growth.

Below the new retail shock line, e-commerce accounts for more than 30%, and revenue growth may gradually recover.

According to Aowei Cloud, the retail sales of range hoods / gas stoves / gas water heaters in the first three quarters are -8% / 5%-6% per year. It is expected that Vantage’s products will be -8% /-13% /-18% each time.The average price is –2% /-8% / + 5%, in which the expansion of the heat-fired channel to + the industry average price has caused it to make a significant landing, and the new product category has performed well (cabinet and steam-boiler all-in-one grow rapidly).

In terms of different channels, it is estimated that offline / e-commerce / engineering half a year will be -16% / + 14% /-26%, offline traffic will be affected by new retail; explosive products + holiday promotions escorted sales, e-commerce revenue accounted forThe ratio exceeds 30%; the assessment method of engineering channels ranges from invoicing to delivery, and the caliber of delivery continues to increase.

Looking ahead, the revenue growth rate will resume in the next half year (channel adjustment + demand recovery). In the long run, product upgrades + channel transformation + brand establishment will lead to the implementation of the smart kitchen strategy. At the same time, the cabinet business will expand to be customized for the whole house.Black & Decker, Vantage Home’s cross-domain brand matrix.

Falling costs + budget cuts helped boost profit margins, and Q3 sales expense ratio dropped significantly.

Gross margin for the first three quarters was 48.

9% (+2 year-on-year.

5pcts), the contribution of cost drop is close to 50%, the rest is caused by the reduction of substitution and the improvement of product structure; the sales expense ratio is 27.

4% was previously flat, with a significant decrease in 19Q3 (yoy-3.

8pcts); the management + R & D expense ratio is basically stable; the net interest rate attributable to mothers reaches 12.

1% (+2 compared to the same period last year).

6pcts), and the drop in blood sugar rate also helps.

Operating net cash has improved significantly (at least + 122%). The company uses commercial bills more to settle bills with suppliers, resulting in yoy + 36% and accounts receivable yoy-11% (three quarterly report bills receivables have dropped significantly from the previous quarter). Inventory yoy + 53% (some of which are unrecognized revenue from issuing goods).

In the third quarter, the company’s net operating cycle was 34 days, a rise of more than 23 days. Vantage’s own cash was US $ 2.1 billion + no interest-bearing liabilities, abundant surpluses and relatively small operating risks.

The industry’s trough has been 佛山桑拿网 practicing internal strength and maintaining the company’s “Buy” rating.

Vantage has positioned itself as a “high-end smart kitchen appliance” and has continued to improve its brand power, product power, and channel power through channel transformation + product upgrades, which helps Vantage to weather the industry trough more smoothly.

The company is expected to have a net profit of 7 in 2019-21.

9, 8.

5, 9.

4 ppm, the current sustainable corresponding PE is 13.

2, 12.

2, 11.

1x, maintain the company’s “Buy” rating.

Risk reminder: The growth rate of real estate is declining, the cost of raw materials is rising, and industry competition is intensifying.