Boss Electric (002508) Interim Report Comments: High-speed Growth of Engineering Channel Performance Evaluation Doubles Bottoms

Boss Electric (002508) Interim Report Comments: High-speed Growth of Engineering Channel Performance Evaluation Doubles Bottoms
Boss Electric disclosed the 2019 semi-annual financial report.The company achieved revenue of 35 in the first half of the year.27 ppm, an increase of 0 in ten years.88%, realized net profit attributable to mother 6.70 ppm, an increase of ten years.52%; of which, the second quarter achieved revenue of 18.67 ppm, 10-year average1.98%, net profit attributable to mothers3.51 ppm, 10-year average2.11%.The company expects that net profit attributable to mothers will increase by 2% -10% in the first three quarters of 2019, corresponding to a growth rate of 2 in the third quarter.9% -26.The 0% smoke stove fluctuated slightly, and the oven was growing against the trend.Range hoods and gas stoves achieved revenue in the first half of the year.8.4 billion and 8.50 ppm, a decrease of 1 each year.11% and 1.74%, accounting for 53% and 24% of revenue; disinfection cabinet / steamer / oven / oven / water purifier / microwave oven drying growth rate is +8.71% /-9.14% /-28.30% / + 21.22% /-10.75% /-47.At 11%, dishwashers have grown significantly after achieving self-production. In terms of different channels, the engineering channels increased significantly than expected.The engineering channel increased significantly by 80%, accounting for about 15%. According to Aowei data, the company’s range hood has a market share of 37 in the decoration industry.8%, ranking first; retail channels, affected by the industry ‘s economic downturn and agents ‘enthusiasm for replacement of goods, retail channels (including KA and specialty stores) to 15%; e-commerce channels increased 2%; innovative channelsIn-depth cooperation with cabinet companies and home improvement companies, a substantial increase of 50% a year. The gross profit margin increased, and the expenses stabilized.Thanks to the decline in raw material prices and the incremental reduction, the overall gross profit margin increased by 1.24pct to 54.66%, of which the gross profit margin of range hoods and gas stoves increased by 3 respectively.48 and 2.24pct to 58.54% and 55.88%.The sales expense ratio increased slightly by 0.48 points to 28.07%, the management expense ratio decreased slightly by 0.28 to 3.29%, R & D expenses decreased slightly by 2% to 1.08 thousand yuan.Net margin increased by 0.32pct to 19.20% inventory control is good, channel inventory decline.At the end of June, the inventory balance decreased slightly by 1.68% to 12.16 trillion, of which the surplus of raw materials increased by 90.75% to 1.120,000 yuan, the inventory of goods fell by 19.15% to 2.3.4 billion, issued goods fell 14.08% to 7.76 ppm. In the first half of the year, due to the excessive downturn at the retail end, the company also controlled the production and expansion progress, and the channel inventory was smoothly de-allocated.Accounts receivable increased by 16.95%, 苏州桑拿网 turnover days increased by 3 for decades.6 days to 23.93 days, mainly due to the substantial increase in engineering channel revenue.The ratio of operating cash inflows to revenues was 102%, a decrease of 20 per year.39 points. Earnings forecasts and investment advice.It is expected that with the recovery in real estate completion, the demand for kitchen appliances will usher in recovery. We expect the company’s EPS to be 1 in 19/20/21.69/1.97/2.21, currently expected to correspond to 19/20/21 PE is 15/13/12 times.Taking into account the company’s top and the expected completion of real estate recovery, we give the company 20-25 times PE, corresponding to a target price of 33.8-42.4 yuan, maintain “Buy” rating. Risk warning: Completion recovery is later than expected, industry competition intensifies, and raw material prices fluctuate