Main points of investment
Events: during the reporting period, the company's operating income was 221 million yuan, up 68.85% over the same period last year; operating profit was 27.8833 million yuan, up 50.38%; net profit was 2040.47, up 26.26% over the same period last year; non-net profit was 18.209 million yuan, up 23.80% over the same period last year; basic earnings per share was 0.23%
The profit prospect is good, and the revenue and profit grow in parallel. During the reporting period, the company made a good profit, with revenue up 65.85% compared with the same period last year, with a significant growth trend. Accordingly, the operating cost was 150 million yuan, an increase of 63.71% over the same period last year. Sales expenses and management expenses also increased, to 1608.46 / 24.1394 million yuan respectively, an increase of 52.05% and 46.55% over the same period last year.
The increase in revenue and expenses is due to the expansion of the production scale of the company's newly merged subsidiary Lianjun Ceramics. The gross profit is 71.7702 million yuan, the gross profit is 32.44%, and the level of gross profit is stable as a whole.
The main ceramic business is becoming more and more prosperous, and the production and sales layout is perfect. The company is a supplier of daily porcelain integrating R & D, design, production, sales and service. In terms of production and management mode, it mainly adopts the production and management mode of combining ODM/OEM with independent brands. In terms of export, the company's products are mainly sold to Southeast Asia, Australia, Europe, North America and other ceramic markets, and has established long-term and stable cooperative relations with customers in more than 50 countries and regions in the world. In terms of domestic sales, the company's customers cover Nestl é (China), Yili, Hilton, Marriott and other well-known enterprise groups, while the layout of the national KA chain, mainly Carrefour, Yonghui, Da Runfa, Bubong Lotus and so on. During the reporting period, the merger and acquisition of Chaozhou Lianjun Ceramic Co., Ltd., a holding subsidiary, expanded the design, production and sales of ceramic products, realized efficient production capacity expansion, and greatly improved the efficiency of production and operation.
Although the competition in the industry is fierce, the company has high competitiveness and remarkable advantages. The competition in the ceramic industry is still fierce, there are some problems, such as unreasonable product structure, high-quality products in short supply, low-end products into fierce homogenization competition and so on. The company can continue to maintain a good profit, thanks to 1. 5%. Technology research and development advantages: the company has a large research and development center, participate in a number of national innovation projects and industry standard formulation, high product quality. two。 Creative advantage of design: the average annual development of more than 2000 new products, advanced design concept. 3. Advantages of customers and marketing channels: diversified sales channels, extensive and stable customers at home and abroad.
The sword refers to the education industry, and the extension is gradually opened. During the reporting period, the company participated in Guangzhou Mingshi Education Service Co., Ltd through Songfa Chuangsheng Industrial Fund, and signed the equity transfer agreement of Beijing Daigo Brothers Science and Technology Development Co., Ltd., with self-raised funds to transfer 51% of the shares of Daigo brothers, to achieve the strategic layout of "one parameter, one control" in the education industry, and lay the foundation for the company's strategic development goal of "ceramic manufacturing + education industry".
Profit forecast and risk rating: during the reporting period, the company is in good operating condition and healthy financial condition. The main ceramic industry maintains the double growth of revenue and profit in the case of intensified competition in the industry, and the merger and acquisition of new subsidiaries improves the production efficiency of the main industry, and the development prospect is better. In view of the fact that the company will also promote the two-wheel drive operation model of "ceramic manufacturing + education industry", it is speculated that new profit growth points will be explored in the future. It is estimated that the company's EPS in 17-19 will be 0.77 EPS 1.04 pound 1.15 yuan, corresponding to the current share price PE is 38-28-26 times, the first time to cover the "overweight" rating.
Risk hint: competition in the ceramic industry will intensify in a short period of time, and the education industry will not advance as fast as expected.