Chao Hongji (002345) 2018 Annual Report and 2019 First Quarterly Report Comment: 18 years of accrual of large amount of goodwill impairment loss, lightly loaded to expand the fashion jewelry industry
Net profit attributable to mothers decreased by 75 in 2018.
01%, the net profit attributable to mothers in the first quarter of 2019 decreased by 5.
63% achieved operating income of 32 in 2018.
48 ppm, a five-year increase of 5.
Realize 上海夜网论坛 net profit attributable to mother 0.
71 ‰, a decrease of 75 per year.
01%; net profit deducted from non-return to mother 0.
59 trillion, a decrease of 76 a year.
41%, the company’s performance is in line with the results released earlier.
The 18-year net profit broke through the same decline, mainly due to the provision for impairment of goodwill formed by the acquisition of FION and the provision of bad debts for corresponding receivables, resulting in asset impairment2.
The first quarter of 2019 achieved operating income9.
5.7 billion, an increase of 13.
61%; net profit attributable to mother is 0.
8.8 billion yuan, a decrease of 5.
63%; net profit deducted from non-return to mother 0.
82 trillion, with a decrease of 5.
Overall gross profit margin increased by 1 in 2018.
95 averages, 1Q19 decreased by 2.
The company’s consolidated gross profit margin for the 64 years of 2018 was 39.
34%, an increase of 1 over the same period last year.
Expenses for the company period in 201829.
99%, an increase of 2 over the same period last year.
83 single ones, of which sales / management (including R & D) / financial expense ratios are 23 respectively.
06% / 5.
02% / 1.
91%, a change of 1 over the same period last year.
The company’s consolidated gross margin for 1Q2019 was 38.
74%, a decrease of 2 over the same period last year.
Company expenses for the first quarter of 201926.
88%, a decrease of 0 from the same period last year.After 24 years of goodwill impairment, the company went light and continued to promote the expansion of the fashion jewellery industry. In 2018, the company’s jewelry stores reached 907, including a net decrease of 7 from its own operations to 570 and a net increase of 96 to 337.
Looking at East China, Central China, and North China, the net increase of stores by region is temporary.
In terms of categories, 18 years of growth is still the company’s main fashion jewellery, with an increase in revenue of 6.
65%, gold and leather goods revenues increased by 1.
21% / 1.
The company is expected to continue to promote the expansion and sinking of fashion jewellery, and use jewellery as the core to drive the “her economy” industry chain.
Downgrade earnings forecast and maintain “Buy” rating. Considering the company’s cost pressure due to channel sinking and new product research and development, we lowered its EPS forecast for the company for 19-20 to 0.
36 yuan (previously was 0.
39 yuan), adding 0 to 重庆耍耍网 the 21-year forecast.
38 yuan, the company has a stable operation and management capabilities, and timing to deepen the layout of the fashion industry, PB (2019E) 1.
1x is at a relatively low level and maintains a “Buy” rating.
Risk reminder: The layout of the fashion industry is not up to expectations, and the K gold jewelry market is not up to expectations.