Boss Electric (002508): Significant improvement in revenue from the previous quarter and rapid development of engineering channels

Boss Electric (002508): Significant improvement in revenue from the previous quarter and rapid development of engineering channels
Event: The company released the third quarter report of 2019, and the first three quarters achieved revenue56.2.5 billion, +4 a year.29%, net profit attributable to mother 10.86 trillion, ten years +7.31%; corresponding to Q3 realized income 20.98 trillion, ten years +10.56%, net profit attributable to mother 4.1.5 billion, +18 a year.20%.The 深圳SPA会所 company’s indicator of operating performance in 2019, is expected to change the growth rate of net profit attributable to mothers in 2019 by 2%?10%, of which, Q4 is expected to grow at -9.4%?15.88%. The revenue has improved significantly from the previous quarter. The improvement in land completion data has been reflected in industry data. According to industry online data, the performance of the traditional smoke stove market has improved in the third quarter. The range hoods and gas stoves were sold domestically in July-August 19+2 twice.03%, +2.69%.From the perspective of market share, the company’s retail sales share still remains the industry’s leading category.The company’s Q3 revenue has improved significantly month-on-month, and it has reverted to double-digit growth. The increase in the number of orders for restructuring 南京桑拿网 fine decoration channels has brought increase to the company. It has replaced double-eleven stocks on the e-commerce platform and offline channel replenishment.The impact of the downturn in the industry has led to an improvement in the decline in dealers’ expectation of receiving goods. The gross profit margin was further increased, and the expense side was effectively controlled. The company’s gross profit margin was 19Q3, and the net profit margin was 55.69% and 20.15%, +2 each year.62, +1.39pct, the increase in gross profit margin and net profit margin was mainly due to the decline in raw material prices and the improvement.From the perspective of expenses, the company’s sales, management, R & D, and financial expense ratios in 19Q3 were -0.94, -0.19, -0.13, +0.20pct, the company’s overall cost reduction and efficiency improvement continue to appear, and the decline in sales expenses may be related to the rapid development of the company’s engineering channels. Accounts receivable + bills have increased significantly. Actively scheduled production and prepaid accounts have increased. From the balance sheet, monetary funds + other current assets at the end of 19Q3 were 49.0.6 billion, an increase of 3 from H1.49 trillion; accounts receivable + notes 21.4.2 billion, an increase of 1 from the previous month.79 trillion, +37 a year.66%, we expect to be related to the rapid growth of engineering channels expected in the payment cycle;5.3 billion, an increase of 0 from the previous month.370,000 yuan, at least -6.02%; prepayments increased by 0 from the previous month.33 trillion, ten years +9.33%, mainly due to the company’s business recovery and active production scheduling.In terms of turnover, the company’s 19Q1-Q3 inventory and receivables turnover days +7 for decades.57 days, +5.82 days, business cycle increased by 13.39 days, extended business cycle.From the cash flow statement, Q3 net cash flow from operating activities3.77 ppm, of which Q3 cash inflow of goods sold and labor services provided was -0.84%, the decline gradually narrowed. Investment suggestion: The industry with the improvement of real estate completion data is expected to recover slightly. Taking into account the company’s brand advantages and first-mover advantages in refined decoration channels, as well as new categories launched earlier, the company’s second-half performance is expected to gradually come out of the bottom.For quarterly results, we adjusted the company’s net profit for 2019-2021 to 15.9, 17.2, 19.400 million (previous value was 15.9, 17.5, 19.4ppm), the current sustainable corresponding 19-year dynamic assessment is 17.2x, 15.9x, 14.1x, maintain the “overweight” level. Risk warning: the real estate downturn leads to increased demand; the risk of raw material price fluctuations.