Op Lighting (603515): Growth continues at the bottom of the business, industry consolidation needs to be accelerated
Investment Highlights The company disclosed the 南京夜网 2019 semi-annual report: income, return to mother, deduction 37.
8 billion, 4.
1 billion, 2.
600 million, previously +7.
8%; corresponding to 2019Q2: income, return to mother, deduct 21.
6 billion, 3.
2 billion, 2.
200 million, previously +3.
5%; the growth rate in the second quarter improved compared with the first quarter.
I. Revenue analysis: The downturn in real estate is still in effect. The initial bottom of revenue is affected by real estate. The company’s revenue growth rate has been replaced quarter by quarter, from 23 in 18Q1.
6% is about 12 in 19Q1.
2%, a further decrease of 19Q2 of 3.
1. Home lighting Real estate home lighting is the largest sector, accounting for 40%, subject to the growth of real estate boom.
The home furnishing company 杭州桑拿 continued to strengthen its channel layout: it has established over 3,500 retail stores, 120,000 hardware outlets, and multi-platform online channels throughout the country, and has continuously upgraded to create a standardized system of terminal stores and customized service capabilities for customers.
Looking at H1 by channel: ①The retail channel is expected to continue.
The company actively seeks a change in retail channels. The “seller” and “merchant” promote the building director’s plan to guide traffic, from “selling products” to “selling solutions” and increasing customer unit prices.
② Forecast of growth rate of circulation channels.
As the company’s distribution channels are more diversified into the sinking market, increasing the proportion of high-quality outlets, and launching an extremely cost-effective product portfolio, the coverage of township outlets has exceeded 50%.
③ Online channels maintained rapid growth.
Driven by the adjustment of online channel prices, the growth rate continued to be 20% + high growth, and the market share increased.
2. The growth rate of commercial and non-lighting standards ① The commercial license business is slightly defective.
Aiming at various sub-sectors, the company continued to introduce intelligent lighting control solutions such as OP’s full house smart home control system; in the first half of the year, the growth rate declined due to the delay in short-term delivery of some land projects.
② Non-lighting business (electrical converters and integrated packages) continued to develop.
In the first half of the year, the electrical business continued to improve the three product lines of switches, power strips and circuit breakers, and the new national standard strips were newly listed; the assembly business provided multifunctional space solutions for home customers, and the business continued to develop hotel customers such as China Living Group.
3. The overseas growth rate dropped to a few overseas markets. The company deepened its localized operations. In the first half of the year, it was the office space of the Kropman Group in the Netherlands, Naples Stadium in Italy, the University of Saudi Arabia, the Amazon warehouse in India, the Huawei showroom in Surabaya, Indonesia, and the Vivo experience in ThailandWell-known brands such as specialty stores and logo buildings provide overall lighting solutions. However, due to some dealer adjustments and product certification, the growth rate fell to single digits in the first half of the year.
2. Profit analysis: The overall gross profit improved and the gross profit margin increased by 19H1 in terms of gross profit margin due to cost control.
1%, year -1.
37 points; core reasons: first, the proportion of commercial license business with a reduced gross profit margin increased; second, online competition strategies reduced the price of some standard products.
In terms of expense ratio, 19H1 expense ratio is 26.
4% a year -1.
Selling expense ratio 19.
4% a year -1.75pct; originated from the company’s immediate adjustment of store opening speed to optimize operating efficiency; management expense ratio 6.
8% +0 per year.
39pct, R & D investment increased by 29.
7%; financial expense ratio is 0.
14%, ten years +0.
In terms of net interest rate, the net interest rate in 19H1 was 10.
7%, +0 per year.
57 points, reflecting the company’s excellent cost control under the pressure of gross profit margin caused the net interest rate to rise without falling.
Third, cash flow analysis: Turnover rate fell slightly, the decrease in receivables led to the increase in cash flow, the total amount of the company’s inventory and accounts receivable decreased, and the inventory interval in 19H1 was -2.
4%, accounts receivable for ten years -9.
4%; inventory turnover rate from 3.
04 about 2.
95, accounts receivable turnover rate from 7.
37 expected 6.
Net operating cash flow 2.
1 billion, previously +462.
3%, the decrease in accounts receivable drove a substantial increase in net operating cash flow.
Investment suggestion: under the influence of the overweight rating land boom, the company’s performance growth will accelerate; but looking ahead, we expect to transform the home retail channel and the circulation channel expansion, the company’s market size will continue to increase, coupled with the continued development of commercial and non-lighting, the companyThere is room for long-term growth.
This paper predicts EPS of 19-21 years.
86 yuan, currently corresponding to PE23, 19, 16x, maintaining the “overweight” level.
Risks indicate that demand is deteriorating, competition is intensifying, and channel transformation and expansion are not as expected