Event: Jiayu shares released its quarterly report for 2015 on the evening of the 22nd. From January to September, its operating income reached 1.421 billion yuan, an increase of 14.46% over the same period last year. The net profit belonging to shareholders of listed companies was 44.3965 million yuan, up 1.28% from the same period last year. From July to September, the operating income was 515 million yuan, an increase of 8.38% over the same period last year. The net profit belonging to shareholders of listed companies was 9.685 million yuan, down-45.53% from the same period last year.
Comments:
Revenue continues to grow: after the completion of the national market layout, revenue continues to improve. From January to September, the operating income reached 1.421 billion yuan, an increase of 14.46 percent over the same period last year. In the overall poor economic environment, the operating income of a large number of enterprises declined, the performance of Jiayu shares is particularly eye-catching. According to the three-quarter reports of companies released in 2015, the overall revenue of the building materials industry fell 8.01% year-on-year.
Gross profit margin is stable: from January to September, the company's gross profit margin was 15.72%, basically the same as the same period last year. The company's current sales expense rate and management expense rate are 3.56% and 6.54% respectively, an increase of 0.12% and 1.05% respectively over the same period last year. The cost control is good, and the company pays attention to meticulous management measures. From January to September, the company's net profit was 44.3965 million yuan, up 1.28% from the same period last year, mainly due to an increase in administrative expenses and sales expenses, resulting in a lower increase in net profit than in revenue.
Develop the retail market of doors and windows to consolidate the leading position in the industry: during the reporting period, the company completed the overall planning and laying the groundwork for the retail business. The company will adopt the combination of online and offline to promote the retail market of Internet + doors and windows. Online through cooperation with major e-commerce platforms to build a sales platform, establish and promote "Jiayu" national brand image, through integrated marketing and overall brand promotion planning, quickly establish a brand image, generate brand premium in retail and engineering markets. Offline through the promotion of franchise stores and experience stores, the formation of online and offline interaction, improve the transaction rate of online business, but also provide offline customers with standardized services different from other brands. With its outstanding advantages such as short processing cycle, fast response speed, short transportation distance, timely after-sales service, rich product lines and good product quality, it can meet the retail business needs of doors and windows in first-tier, second-tier and third-tier cities, and build service windows through online APP platform and offline. Through efforts, the company is the only aluminum alloy door and window enterprise in China that can meet the distribution of customers in the retail market.
Plan to control Shanghai Shangyuan and continue to develop the middle and high-end door and window retail market: the company has reached a cooperation framework agreement with Shanghai Shangyuan Construction Technology Co., Ltd. The company plans to restructure the assets of Shanghai Shangyuan and its subsidiaries, increase capital to Shanghai Shangyuan, control Shanghai Shangyuan, and divest Shanghai Dongjiang into the company's East China region. The company will take Shanghai Shangyuan as the main carrier of the company's retail business and create a national leading brand in the retail market of medium and high-grade energy-saving doors and windows. Shanghai Shangyuan mainly engages in medium and high-end energy-saving doors and windows, has rich experience in door and window retail business, and has a good brand and reputation in East China. "SUNTEK Yangyi doors and windows" produced by the company is one of the top ten best-selling brands of doors and windows in Shanghai. SUNTEK Yangyi doors and windows has been officially launched in Tmall's flagship store in early 2015, rapidly becoming the number one brand in Tmall's home decoration doors and windows category. After the cooperation between the two sides, Shanghai Shangyuan will independently develop software and APP based on many years of service experience in the door and window retail market, combined with the rapid construction of offline services, to solve the pain points of customized products landing services, and to provide consumers with a high-quality, standardized and timely service platform. Jiangsu Yangyi Industrial Co., Ltd. is the production base of Shangyuan in Shanghai, with production and processing base and warehousing and logistics base for retail market products. Shanghai Dongjiang Architectural Decoration Engineering Co., Ltd. is mainly engaged in medium and high-grade energy-saving door and window tooling business, which is a well-known brand in Shanghai architectural decoration and building curtain wall industry, and has a certain brand influence in East China. Key projects he has participated in include Shanghai 80,000 people Gymnasium, F1, Science and Technology Museum, Oriental Pearl, Jinan Olympic Sports Center, World Expo, Fisherman's Wharf, China Eagle Black Forest, Walt Disney Company International Resort and so on.
Earnings forecast and investment rating: we expect the company's earnings per share from 2015 to 2017 to be 0.18,0.26 and 0.37 yuan respectively. Taking into account the company's leading position in the door and window industry and its future growth, we maintain the "overweight" rating of the company.
Risk factors: the risk of the change of real estate regulation and control policy; the risk of overseas business; the risk of raw material price fluctuation; the risk brought by the company's rapid expansion.
