Xiaoxiong Electric (002959): High brand recognition and high income continue to grow rapidly

Xiaoxiong Electric (002959): High brand recognition and high income continue to grow rapidly

The Tao brand continued to grow at a high speed, and the company with an “overweight” rating disclosed the third quarter report of 2019, and the company achieved operating income in Q1-Q3 of 201917.

21 trillion, +30 a year.

56%, net profit attributable to mother 1.

68 ppm, +40 for ten years.

52%, of which, in the 四川耍耍网 single quarter of 2019Q3, the company achieved operating income5.

32 trillion, +33 a year.

11%, net profit attributable to mother is 3985.

710,000 yuan, ten years +14.

75%, revenue growth is better than our expectations.

The company is rooted in e-commerce channels, and at the same time, it is beginning to expand emerging channels. Under the sinking of channels, emerging e-commerce platforms are widely deployed. At the same time, the product conversion is rapid, and the blue ocean competition field is continuously expanding. It is expected to maintain high-speed growth in market segments.

We forecast the company’s EPS for 2019-2021.

08, 2.

55, 2.

94 yuan, maintaining the “overweight” level.

The influence of online market brands has increased, with new products driving growth. Q1 to Q3 2019 The company 杭州桑拿 achieved operating income17.

21 trillion, +30 a year.

56% in the single quarter of 2019Q3, the company achieved operating income5.

32 trillion, +33 a year.

11%.

As a small appliance brand that grew up relying on Taobaobao, the company still shares the rapid growth of the online market.

Aowei Cloud Network data shows that on January 9, 2019, the online retail value of the small home appliance market was 19.4 billion euros, equivalent to +12.

2%, the previous offline market ten years -7.

At 3%, we believe that the company is rooted in the online small home appliance market. The online consumer demand data has been fully accumulated and accumulated, and the conversion rate of new product development to explosive models has increased, which will still help maintain multi-category growth.

The gross profit margin of Q3 was stable, and the companies mainly affected by the change in product structure achieved a gross profit margin of 35 in Q1-Q3.

29%, ten years +2.

09 points.

Among them, in the single quarter of 2019Q3, the company’s gross profit margin was 33.

68%, flat for one year.

The company’s product series are rich, and the overall gross profit margin level is affected by the short-term extension structure change of the product series.

In the short term, the company continues to launch new products and dynamically adjust the product structure without significantly increasing costs, which still helps maintain a constant and stable level of gross profit margin.

Consolidate the brand, build an innovative team, and the Q1-Q3 company’s expense ratio is once again +1.

95pct2019Q1-Q3 The company’s overall period expenses 21.

75% for one year.

95pct, of which the sales expense rate is +2 per second.

12pct, increased to 15.

32%, we think the increase is mainly due to the company’s brand marketing and promotion expenses.

R & D expense ratio reaches 3.

08%, ten years +0.55pct, the company built a team around product research and development, research and development costs maintained a high growth.

Management expense rate is -0 per year.

42 points.

We believe that the company may continue to attach importance to brand building and increase investment in human resources such as innovation. In the future, it may maintain high brand and R & D expenditures, and the expense rate level may remain high.

In summary, the company achieved net profit attributable to mothers in Q1-Q3 20191.

68 ppm, +40 for ten years.

52%.

Strengthen the research and development capabilities, continue to develop the blue ocean category, the company’s revenue maintains a high growth, the company’s new product conversion rate is high, the continued development of the blue ocean category, and the revenue growth rate is better than expected.

08, 2.

55, 2.

94 yuan (range 2 before 2019-2021).

00, 2.

46, 2.

90 yuan), and the company’s independent brand influence is expected, it is expected to continue to enjoy diversified new product speedup dividends, or to maintain the industry’s leading growth rate.

As of October 29, 2019, the average PE of the comparable company in 2019 was 26x. Considering that the company is a new share and enjoyed a significant estimated premium, we believe that the company’s reasonable PE estimate for 2019 is 37-39x PE, which is reasonable and actionable76.

96?
81.

12 yuan to maintain the “overweight” level.

Risk warning: E-commerce channel fluctuations and demand range; domestic market development is blocked; industry competition is intensifying.