Sofia (002572): Predicts 12% increase in net profit in 2019

Sofia (002572): Predicts 12% increase in net profit in 2019
Forecasted earnings growth of 11 per year.6% of the companies released a report on 2019 results, and the company’s revenue in 19 years increased even more5.7% to 77.$ 300 million, net profit attributable to mothers grows by 11 per year.6% to 10.70,000 yuan, the net profit after deducting non-attribution to mothers increased by 5.8% to 9.700 million, in line with our expectations; in Q4 alone, revenues increased by 9 per year.5%, net profit attributable to mothers increased by 31%, net profit attributable to non-mothers increased by 33%. Focus on point 1. Q4 revenue growth has accelerated month-on-month.The company’s 4Q19 revenue increased by 9.5%, a month-on-month increase in speed. We expect the following: 1) Product: Kang Chun board, light luxury series products to increase the proportion, cabinets, wooden doors to accelerate growth; 2) channels, increase wardrobe, cabinet linkage activities, vigorouslyPromote the systematic management of dealer incentives, operations, and elimination; 3) In terms of internal management, the organizational structure has been adjusted and improved to significantly improve efficiency, and transformed from vertical management to 8 major theaters to improve the response speed to the terminal market; 4) in terms of marketing, external to dateConsultation agency to sort out brand positioning and focus on the market image of “custom cabinet experts”. 2. The profit margin in 19 years remained stable.In 19 years, the company’s non-profit growth rate was consistent with the revenue growth rate, and the overall profitability remained stable. We believe that the main reasons are: 1) the decline in value-added tax, product structure adjustment and other factors led to a stable gross profit margin; 2) increased marketing expenses, Control the management of expenses, and strengthen the precise placement of expenses. 3. To respond to the impact of the epidemic, adjust Q1 marketing and production plans.In terms of marketing, in the face of the epidemic impact since the Spring Festival, the company adjusted its marketing campaign plan and started the new year’s opening marketing campaign earlier in the industry. The activity format was changed from offline to online to grab industry passenger flow. In terms of production, the company’s Huanggang factoryPostponed construction, the other four major production 上海夜网论坛 bases were responsible for the production of orders at the Huanggang factory to ensure product delivery. 4. Focus on the stimulating effect of channels, products, and marketing on 2020.On the channel side, we expect that the company’s engineering channels will continue to grow at a high speed driven by the expansion of its product line. The expansion of the integrated channel will rationalize the expected expansion of related revenues. On the product side, we expect light luxury series and Kangchun boardsThe proportion is expected to continue to increase, and cabinets and wooden doors are expected to maintain a rapid growth momentum; on the marketing side, we expect to increase online drainage and closet linkage and other marketing growth to drive the company’s orders to maintain steady growth. Estimates and recommendations We maintain 1 per year in 2020.The profit forecast of 27 yuan is unchanged, and the profit forecast for 2021 will be 1.39 yuan, corresponding to 16/14 times P / E.Maintain Outperform rating and maintain target price of 23.6 yuan unchanged, corresponding to 19/17 times P / E in 20/21, with 20% growth space. The prices of risky raw materials fluctuated sharply, and the outbreak lasted longer than expected.

Related Post

Yili shares (600887) third quarterly report: rapid growth in room temperature liquid milk support statement improved month-on-monthYili shares (600887) third quarterly report: rapid growth in room temperature liquid milk support statement improved month-on-month

Yili shares (600887) third quarterly report: rapid growth in room temperature liquid milk support statement improved month-on-month Commentary event: The company announced the third quarter report of 2019, and the