Zhejiang Mida (002677) 2019 Interim Report Review: Steady Upward Direction

Core point of view In the second quarter, although the industry and real estate are under pressure, the company’s revenue and profits have maintained a rapid growth of more than 20%, and its operating performance is better.

Especially from the perspective of profitability, the product structure was better adjusted in the first half of the year, and the proportion of steamer models with higher average prices increased. Boots drove the gross profit margin upward, offsetting the impact of marketing and R & D expansion. It is expected 杭州桑拿 that the overall performance of the second half will remain stable.Upward.

   Steady revenue growth and better operating performance.

2019H1 company realized revenue 7.

0 billion, previously +25.

2%, net profit attributable to mother is 1.

800 million, previously +25.

0%.

Among them, in 19Q2, the company achieved revenue of 4.

200 million, previously +21.

1%, a 10% increase over the previous quarter; net profit attributable to mothers is 1.

100 million, before +27.

2%, the growth rate improved by 5 in the first quarter.

Against the background of the overall pressure of the kitchen appliance industry and the land in the second quarter, the company’s revenue and profit end still maintained a growth rate of 20% +, and its operating performance was better, especially benefiting from tax cuts and fee 武汉夜网论坛 reductions and improved product structure to drive gross profit margins.

   Actively explore the first and second tiers offline, and strive to achieve high growth online.

Land reserve + shed reform measures, under pressure from the industry, companies actively maintain first-tier, second-tier, and online efforts to maintain high growth.

Offline, the company added about 300 terminal stores in the first half of the year, and increased the quality of dealers. The average number of stores exceeded 4 (the original dealer had an average of 2 stores). The KA channel entered 100 stores in the first half of the year.Factors such as the lack of KA operation experience affect slightly ahead of the target. In the future, special training for the KA market will be strengthened, and measures such as products will accelerate the promotion.

In the final interim report, the company’s cumulative number of terminals has reached about 2,500, and the number of outlets expanded by about 20% in half a year.

  In terms of e-commerce, it maintained rapid growth in the first half of the year, and currently accounts for about 10% of its revenue. There is still potential for improvement.

   Product structure upgrades helped increase gross profit margins, and advertising cost growth was in line with short-term strategy.

In the first half of the year, the company’s gross profit margin increased by 2.

3pcts, mainly benefit from: 1.

The proportion of steamer models with higher average prices has increased, and the product structure has been upgraded better; 2.

The cost of raw materials has fallen and the expansion of the tax rate has been reduced.

In terms of expenses, in the context of the current industry’s accelerated penetration and the influx of peers, the core of the company’s short-term strategy is to continue to expand its brand building. As a result, its marketing efforts have continued to increase, especially high-speed rail, new media and other channels.81%; Q2 of administrative expenses decreased by 2 compared with the same period of last year.

5pcts, mainly because of equity incentives in the same period last year.

In terms of cash flow, the growth rate of cash generated from sales of commodities (8.

6%) is weaker than the company’s revenue growth rate, and the leading accountant period for high-quality dealers is leading.

   Future: There is a lot of room for improvement in long-term penetration.

Ranking in the kitchen appliance industry, the integrated stove category is still in a period of rapid development.

According to Zhong Yikang data, online data from January to May, integrated stove sales12.

10,000 units, + 47% a year, the current penetration rate is about 10%, and the long-term space has more than doubled.

High growth + high gross profit + low-gate creatures have led to the breakdown of new entrants, and the industry structure has deteriorated. According to Zhongyikang’s data, 162 online brands are on sale, an increase of 65 from the previous year.

However, as the founder of the industry, the company adheres to the high-end positioning. Through increasing research and development, brand promotion, and the first layout of the first and second lines, the KA market has gradually maintained its leading position.

   Risk factors: continued downturn in real estate; intensified competition in the industry; product safety risks.