Revenue increased 33.23%, and net profit increased 11.39%. 2017H1 realized operating income of 287 million yuan, up 33.23%, operating profit of 75 million yuan, up 10.23%, and net profit of 65 million yuan, up 11.39% and 0.74 yuan per share. Of this total, Q2 achieved an operating income of 198 million yuan in a single quarter, an increase of 32.76% over the same period last year, and a net profit of 48 million yuan, an increase of 2.08% over the same period last year.
The income continues to grow at a high level, and the basic module increases significantly.
Operating income continued to grow at a relatively high rate since the fourth quarter of last year, with Q1 and Q2 growing at 34.26% and 32.76% respectively compared with the same period last year. In terms of products, the operating income of basic modules, functional modules, auxiliary modules and ACOLL in the first half of the year was 156 million yuan (+ 58.28%), 92 million yuan (+ 9.92%), 35 million yuan (+ 18.68%) and 4 million yuan (8.82%) respectively, accounting for 54.34%, 31.98%, 12.35% and 1.26%, respectively. The comprehensive gross profit margin was 48.41%, down 1.57% from the same period last year, mainly due to the decrease in gross profit margin and the increase in the share of the basic module; specifically, the gross profit margin of the basic module was 45.74% (- 1.49%), the function module 57.36% (+ 0.88%), the auxiliary module 37.97% (- 5.07%) and the ACOLL 38.5% (+ 8.02%).
Step up brand promotion, a sharp increase in costs is a drag on profits
The company actively carries out brand promotion, places advertisements in transportation media such as CCTV, airport high-speed rail and the Internet, and launches a series of promotional activities with the theme of Rui series to enhance the brand image. Affected by this, the company's sales expenses in the first half of the year were 42 million yuan, an increase of 110.76% over the same period last year, of which advertising expenses were 19 million yuan, an increase of 234% over the same period last year, and the sales expense rate was 14.48%, an increase of 5.33% over the same period last year. At the same time, affected by the increase in consulting fees and managers' fees, management fees increased by 53.89% year-on-year, and the management expense rate increased by 1.52 percentage points to 11.29%. Subject to the sharp increase in fees, the net interest rate fell 4.78 percentage points to 22.25% compared with the same period last year; with the gradual improvement of brands and channels, there is much room for profit improvement.
Deep ploughing channel construction, looking forward to home decoration and project delivery.
The company actively expanded the retail network construction of specialty stores, accelerated channel optimization and accelerated channel sinking. By the end of the reporting period, the number of specialty stores reached 1364. At the same time, it actively expanded home improvement and engineering channels, and signed a five-year strategic cooperation agreement with Evergrande in May. It is clear that the purchase amount from Evergrande from 2017 to 2019 is not less than 500 million yuan, and the total amount of intended purchase from 2017 to 2021 is expected to reach 1 billion yuan. And with love space, Tuba rabbit, you live network, industry peak and other home decoration companies, Vanke, green space, Zhongnan and other real estate companies to carry out business cooperation, is expected to provide good support for the company's performance growth.
Integrated ceiling faucet, the future development space is large, give the buy rating company to focus on the integrated ceiling business, multi-channel at the same time, with home improvement and engineering capacity, the future development space is large. It is estimated that in 17-19, the EPS will be 1.75, 2.36, and 3.42 yuan per share, respectively, and the corresponding PE will be 30.7, 22.8, 15.8x, with a "buy" rating.
