Diou Home Furnishing (002798): Launch of Expanding Stock Incentive Program to steadily advance channel layout

Diou Home Furnishing (002798): Launch of Expanding Stock Incentive Program to steadily advance channel layout

This report is a guide: The company intends to grant 4 million shares of 166 core stocks to the core personnel of the controlling subsidiary Osheno, further motivating the team.

With the continuous layout of multiple channels, the company will further increase the market share of the bathroom and tile business.

Investment Highlights: Maintain target price of 25.

35 yuan to maintain the overweight level.

The company intends to grant 4 million shares of 166 core personnel to its holding subsidiary Osheno. Through continuous distribution through various channels, the company will further increase the market share of the bathroom and ceramic tile business.

Maintaining 2019?
EPS1 in 2021.

32/1.

69/2.

16 yuan, maintaining a target price of 25.

35 yuan, corresponding to 15 times PE in 2020, maintaining an overweight rating.

The incentives proposed for the holding of the company’s holding subsidiary Ossino middle managers and core technical / business personnel to expand 4 million shares.

A total of 166 incentive objects were awarded under this incentive plan, and the planned number of authorized supplementary 青岛夜网 shares was 4 million shares, accounting for the company’s total share capital1.

04%, grant price of 10.

86 yuan / share.

In terms of performance evaluation, 2020?
In 2021, the net profit in 2019 will be used as the base, and will gradually be no less than 20% and 40%, respectively. In the medium and long term, the setting of incentives will help further motivate the team.

New and advanced medium-sized real estate developers have gradually contributed revenue, and synergies have gradually emerged.

While the existing customers maintained steady growth, the company cooperated with new customers such as Agile, Rongsheng, Longhu and other large real estate developers to establish cooperative relationships with large and medium-sized real estate developers. The risk potential of large customers accounting for excessively high revenues was initially resolved.

In addition, after experiencing the engineering advantages of Oushennuo and the successful experience of a complete supply chain management system, it has actively developed channels for direct bathroom engineering projects, which is expected to form a synergistic effect between categories.

Connaught adopts a diversified layout in retail channels to accelerate outlet coverage and service sinking.

As of 2019H1, there are more than 800 dealers and more than 2,400 terminal stores.

In addition to making up for the blank market through comprehensive network deployment, the company promoted the first-tier and second-tier cities to accelerate the in-depth layout of “urban franchise partners and smart community service stores”, promote the continued growth of retail channels, and bring the experience of self-operated projects into the retail channels toThe distributors were assisted to develop the assembly and tooling market, and the channel layout was steadily advanced.

Risk Warning: Risk of Real Estate Fluctuation, Channel Expansion Is Less Than Expected

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