Zhejiang Meida (002677): Penetration rate of integrated cooking stoves enhances company brand barriers

Zhejiang Meida (002677): Penetration rate of integrated cooking stoves enhances company brand 失败:重查 barriers

Event: The company released its semi-annual report for 2019 and realized revenue of 700 million yuan, an annual increase of 25.

2%, net profit attributable to mother 1.

80,000 yuan, an annual increase of 25%.

Q2 single quarter revenue 4.

1 ppm, an increase of 21 in ten years.

1%; net profit attributable to mother 1.

10,000 yuan, an increase of 27 in ten years.

2%.

The company continued to promote channel construction, and the integrated stove segment grew against the trend.

The report summarizes that the company added 70 first-tier dealers and 300 terminal stores. As of the end of June 2019, the company has 1,400 first-tier dealers and 2,500 terminal stores. Gradually, the company actively promoted the construction of KA channels.KA has 100 stores.

Affected by the decrease in land sales, reduction in terminal consumption, channel inventory, and other factors, the kitchen appliance industry generally experienced an increase in growth rate or even more absolute value shifts. The company’s integrated stove business revenue growth rate remained high and the integrated stove plate penetration rate remainedPromotion.

The gross profit margin sales expense ratio both rose and brand barriers strengthened.

In the total reported, the company’s main business gross margin was 53.

5%, an increase of 2 per year.

3pp, profitability is further strengthened; and the company’s selling expense ratio is 16.

5%, a substantial increase of 5 per year.

1pp, mainly due to advertising costs and channel expansion.

We believe that this is a sign of the company’s healthy development. According to statistics from third-party organizations, the growth rate of the Q2 integrated stove industry is about 15%. As the industry leader, the company’s growth rate exceeds that of the industry.
Diversified business layout, the proportion of integrated stove business decreased.

The report summarizes that the company’s integrated stove business achieved revenue6.

300 million yuan, accounting for 89% of the company’s revenue.

6%, which was below 90% for the first time.

The company’s cabinet business achieved revenue of 2221.

80,000 yuan, an annual increase of 38.

6%, other businesses (integrated sink, water purifier, etc.) revenue of 5128.

90,000 yuan, an increase of 31 in ten years.

5%.

Developing diversified businesses around the kitchen will be the company’s long-term layout.

The expansion project was put into construction smoothly.

The company’s annual production capacity of 1.1 million (sets) of integrated stoves and high-end kitchen appliances has been successfully constructed, with a planned total investment of 13.

At present, most of the equipment has been purchased and manufactured, and some equipment has been installed and commissioned. It is expected that trial production can be carried out in September 2019. The company’s production capacity has increased and its intelligence has been enhanced to increase production efficiency.

Earnings forecasts and investment advice.

We expect the company’s 19/20/21 EPS to be 0.

71/0.

83/0.

99 yuan.

With reference to comparable companies’ unanimous expectations, considering the huge space for the integrated stove product industry, the company is given an estimated 23 times in 2019 with a target price of 16.

33 yuan, maintain “Buy” rating. Risk warning: the risk of real estate transaction volume or large fluctuations, the risk of raw material prices or large fluctuations.