The company's 1H2018 revenue increased by 27.06% compared with the same period last year, and its net profit increased by 7.79% compared with the same period last year.
On the evening of August 20, the company released its 2018 semi-annual report: 1H2018 realized operating income of 2.383 billion yuan, an increase of 27.06% over the same period last year; realized net profit of 60.18 million yuan, equivalent to fully diluted EPS0.11 yuan, up 7.79% over the same period last year; and realized net profit of 16.61 million yuan, a decrease of 63.11% over the same period last year, and the performance was in line with expectations.
In a single quarter, the company's 2Q2018 achieved operating income of 1.132 billion yuan, an increase of 48.74% over the same period last year, and a net profit of 23.72 million yuan, a decrease of 31.66% over the same period last year. The company also issued a performance forecast for the first three quarters of 2018: it is expected to achieve a net profit of 8000-95 million yuan, corresponding to a year-on-year growth range of-2.75% MUE 15.49%.
The comprehensive gross profit margin decreased by 2.67 percentage points, and the expense rate decreased by 2.37 percentage points.
1H2018's comprehensive gross profit margin was 8.26%, down 2.67% from a year earlier.
The expense rate of 1H2018 during the period was 5.77%, down 2.37% from the same period last year, of which the sales / management / financial expense rate was 4.51% / 1.05% / 0.20%, respectively, and the year-on-year change was-0.96% / 0.30% /-1.12% respectively.
The development of personalized products has achieved initial results, and the income of plain gold products has recovered significantly.
During the reporting period, the company focused on promoting personalized product research and development, launched tar Flame121 perfect Star Flame, seelove Witness Love series and other new products, trying to create a rich connotation, style product system, in fashion, wedding, children's fun three major directions to promote. At present, the effect of the promotion of new products is mainly reflected in gold jewelry, and the company's gold jewelry revenue increased by 33.88% year-on-year during the reporting period.
Maintain earnings forecasts and maintain "neutral" ratings
The revenue side of the company is showing momentum of recovery, but as the main driver of revenue growth comes from gold jewelry with low gross margin, the pressure on the performance side may continue. We maintain the forecast of the company's fully diluted EPS of 0.23 / 0.25 / 0.29 yuan for 2018-2020 and maintain the "neutral" rating.
Risk hint
The growth rate of household consumption fell short of expectations, and the market recognition of new products fell short of expectations.
