Xinbao Shares (002705): Steady Revenue Growth, Profit Exceeds Expectations

The net profit attributable to mothers increased significantly in Q1 2019, exceeding the upper limit of the performance forecast.

400 million (+2 year-on-year.

7%), net profit attributable to mother 5.

0 million yuan (+23 compared with the same period last year).

2%), gross margin of 20.

6% (+ 1% year-on-year.

1pct), net interest rate 6.

0% (+ 1% year-on-year.


Q4 realized income 21.

900 million (+7 year-on-year.

1%), net profit attributable to mother 1.

400 million (+89 compared to the same period last year).

1%), gross margin of 23.

0% (+5 compared to the same period last year).

6pct), net interest rate 6.

6% (+2 year-on-year.


2019Q1 achieved revenue of 18.

800 million (+3 year-on-year.

4%), net profit attributable to mother (88.92 million yuan) (YoY + 106.

5%), gross margin of 19.

7% (+ 1% year-on-year.

8pct), net interest rate 4.

7% (+2 year-on-year.


The annual report is basically the same as the performance express report. The net profit attributable to the mother in the first quarter exceeds the upper limit of the performance forecast, and the growth rate is beautiful.

2018Q4 and 2019Q1 revenue maintained stable growth, profitability continued to increase, and net profit attributable to mothers increased much faster than revenue growth. Benefits: 1) The company brought efficiency improvements through product technology innovation and automation construction, and product profitability continued to increase; 2)The price of raw materials fell; 3) The impact of exchange losses and hedging instruments, specifically: the decrease in exchange losses in 2018 decreased by 1.

10,000 yuan, another hedging income of 80.46 million yuan; in the first quarter of 2019, the exchange loss 四川耍耍网 decreased by 31.96 million yuan, and another hedging income of 18.32 million yuan.

Domestic sales grew faster in the sales of sub-products. In 2018, the revenue of electric heating, electric, home appliances, and other products was US $ 4,21, 1, 1, 6 billion, an increase of 4%, 4%, -15%, and 32%.

By region, foreign sales revenue in 2018 was US $ 7.2 billion, an annual growth of 2%, and domestic sales revenue was US $ 1.2 billion, a further increase of 8%.

We are optimistic about the long-term competitive exchange rate of the company as an export leader, and the short-term performance impact of the original export-oriented export-oriented enterprises. However, in terms of elongation, the factors that really determine the market structure of export companies still lie in the company’s R & D, design capabilities, 合肥夜网 and large-scale manufacturing.Quality control ability.

Therefore, after time has passed to smooth the short-term market fluctuations, we still expect the market concentration of western-style kitchen appliances to continue to increase. At the same time, the construction of Xinbao’s own brand has been steadily progressing, and its profitability has been changed and improved under the environment of gradually stable exchange rates and raw material pricesIn our opinion, the company will achieve good growth in the future. Specifically: 1) Export: As the leader of Western-style kitchens, the concentration of the export industry will continue to increase, driving the company’s export business to grow steadily; 2) Domestic sales: The promotion of brand platform strategy willDriven by the rapid growth of domestic sales revenue, long-term operating conditions are still improving.

Investment suggestions: We expect that the export market demand will come from replacement and stability, and the domestic market, the trend of consumption upgrades will continue, western-style small appliances will gradually penetrate, and Mofei will maintain a good growth. Based on this, we expect to return to motherhood in 2019-2021.The net profit was 6.

2, 7.

1, 7.

USD 900 million, a year-on-year increase of 23%, 14%, and 11%. The latest closing price corresponds to 16xPE in 2019. The average valuation of small appliance export companies in 2019 is about 20xPE. With reference to the average valuation, the company is given a 20xPE in 2019, which is reasonable.Value 15

RMB 4 per share, with rapid growth in the first quarter and continuous improvement in operating trends, maintaining an “overweight” rating.
Risk warning: rising raw material prices; appreciation of RMB; reduced overseas demand; increased competition in the domestic market; unfavorable development of new categories; trade frictions.