The performance in 2019 is growing. 20Q1's income and profits affected by the epidemic are under pressure. In 2019, the company achieved operating income of 2.604 billion yuan, an increase of 12.80% over the same period last year, a net profit of 85.39 million yuan, a year-on-year increase of 1.19%, a deduction of 81.67 million yuan from non-net profit, a year-on-year increase of 3.13% EPS 0.11 yuan, and a proposed dividend per share of 0.2 yuan (including tax). The lower growth rate of net profit than income is mainly due to the decline in gross profit margin.
The company's 20Q1 realized operating income of 363 million yuan, down 34.63% from the same period last year; the net profit from the home was 30.57 million yuan, down 46.63% from the same period last year, mainly due to the decline in sales, gross profit and expense rigidity affected by the epidemic; deducting 24.52 million yuan from non-net profit, down 56.79% from the same period last year.
Income split: 1) from a regional point of view, domestic and export revenues accounted for 98% and 2% respectively in 19 years, + 15% and-43.39% respectively compared with the same period last year. 2) from a product point of view, 19-year kit (39%), core (31%), pillow core (6%), and other (24%) revenue are + 7.54%, + 5.13%, + 21.18% and + 34% respectively compared with the same period last year.
Gross profit margin fluctuated slightly, 20Q1 expense rate increased greatly, cash flow performed well, gross profit margin fell 1.63PCT to 41.12% year-on-year in 19 years, and 20Q1 increased 1.98PCT to 40.42% year-on-year. During the period, the expense rate decreased 1.03PCT over the same period last year, in which the sales, management, R & D and financial expense rates were respectively-2.37,-0.60, + 1.99,-0.06 0.64PCT 20Q1 year-on-year, and the sales, management, R & D and financial expense rates were + 6.90,1.13,+ 2.32 and + 0.64PCT respectively.
Inventory decreased by 8.56% in 19 years, 7.33% at the end of March compared with the beginning of the year, accounts receivable increased by 9.47% in 19 years, decreased by 21% at the end of March compared with the beginning of the year, inventory and accounts receivable turnover accelerated, and 20Q1 slowed down year-on-year. The net cash flow of operations increased by 185.91% to 555 million yuan in 2019 compared with the same period last year, while 20Q1 decreased slightly by 0.68% to 104 million yuan.
The short-term epidemic suppresses sales, paying attention to the deep ploughing effect of home textile business. In the past 19 years, the company's channels have accelerated the sinking to third-and fourth-tier cities and key communities, the layout of "light, small and fast" smart stores, a room of good goods platform online and offline, and the deep digging of home textile business space will accelerate the intelligent retail layout and promote the sinking of channels and washing and care services in 20 years. Considering the impact of the epidemic and the uncertainty of the recovery of economic and consumer confidence, the EPS was lowered to 0.11,0.14,0.17 yuan in 20 years and 22 years, corresponding to 20-year PE39 times, downgraded to "neutral" rating.
Risk hints: the impact of the epidemic exceeded expectations and led to the weakness of terminal consumption; improper cost control.