Events:
The company released the mid-2020 report that the total operating income in the first half of the year was 3.4 billion yuan, an increase of 0.13% over the same period last year, and the net profit was 96.246 million yuan, an increase of 22.4% over the same period last year. Q2's single-quarter revenue was 2.11 billion yuan, a growth rate of 12.2%, and a net profit of 75.505 million yuan, a growth rate of 80.7%.
Investment Summary:
The reversal of performance Q2 exceeded expectations, and the reversal increased under epidemic control promotion. The performance of the company reversed during the reporting period, and the offline channel of Q1 stagnated due to the epidemic, resulting in Q1 revenue of-14.9% year-on-year and net profit of-43.8% compared with the same period last year. However, with the landing of epidemic control and promotion policies, the performance of Q2 company rebounded and increased by 12.2%. The growth rate of net profit soared to 80.7%. Under the background of the national household appliance industry's 20H1 revenue year-on-year-15.3% and the total profit year-on-year-17.8%, the company's 20H1 performance significantly outperforms the market, which is closely related to the company's sales structure optimization, channel innovation, profit improvement and so on.
Take the initiative to strictly manage the enterprise, and achieve remarkable results in performance management and cost control. During the reporting period, the company further deepened the awareness of employees to be proactive and strict, strengthened the performance management, deepened the operation mechanism of the business department, and strengthened the coordination between the business department and the channel platform. The sales expense rate of 20H1 reached 11.34%, which decreased 0.36pct compared with the same period last year. Among them, the Q2 single-quarter sales expense rate was 10.37%, and the Q2 management expense rate was 1.73%, which decreased by 0.57% compared with the same period last year. Q2 achieved 1.3% in a single quarter. In recent years, the company insists on strongly promoting performance management, which strongly improves the company's organizational management ability and internal efficiency, and creates long-term management advantages.
The brand upgrade project is carried out in an all-round way, and the publicity shows the company's strategic determination. During the reporting period, the company implemented the brand empowerment plan with CCTV promotion as the core, placed advertisements on CCTV "Avenue of Stars" and movie channels since the beginning of the year, and launched multi-channel strategic cooperation to start a comprehensive brand upgrade. With the help of the Avenue of Stars in the first half of the year
Strong ratings, reaching 100 million people over the age of 25, effectively enhance brand awareness and reputation, which is the first time in recent years that the company has promoted this blockbuster level of publicity, demonstrating the company's determination to promote its performance.
Marketing channel innovation, cold chain promotion effect is remarkable. In the first half of the year, under the influence of the epidemic, the company increased online sales, promoted the "cloud marketing plan" online distribution, and "Starlight selection, Health Guardian" started live streaming of goods, all of which ensured the performance release in the first half of the year. At the same time, the commercial side further consolidated the company's position in the commercial cold chain, participated in the construction of 700accounting and monitoring PCR laboratories, and donated 2 million yuan worth of biomedical equipment to 14 medical units, including Huanggang Central Hospital, playing a good social effect.
The intelligent industrial park and scientific research platform will be launched in the second half of the year, and the acquisition and storage compensation is expected to be good for short-term profits. The company's previously built cold chain related intelligent industrial park projects, scientific research laboratories and office buildings are expected to be launched in the second half of the year, and are expected to further improve and optimize the company's operation, R & D and production strength. In addition, the company signed a land acquisition and storage agreement, compensation subsidies totaling 484 million yuan, has not yet completed the government recruitment, auction and hanging process, landing will further significantly enhance the company's short-term profits and enhance the strength of capital operation.
Investment suggestion: the company's Q2 performance rebounded and increased faster than expected, and brand upgrading and channel innovation were strongly implemented during the reporting period. with the fermentation of demand for the cold chain industry after the epidemic in the second half of the year, we have high expectations for the subsequent release of the company's performance. After adjustment, it is estimated that the 20-22-year net profit of the company will be 2.8,3.5,440 million yuan, corresponding to EPS 0.34,0.43,0.55 yuan, corresponding to PE 22.3,17.8,14 times, maintaining the "buy" rating.
Risk tips: epidemic control is not as expected; competition in the industry has intensified; raw material prices have increased significantly.