Event: the company released three quarterly reports, with revenue of 1.23 billion yuan in the first three quarters, down 13.87% from the same period last year, net profit of 107 million yuan, down 19.05% from the same period last year, and deduction of 103 million yuan from non-net profit, down 20.48% from the same period last year. Of this total, revenue in the third quarter was 629 million yuan, an increase of 16.15 percent over the same period last year, net profit of 79 million yuan, an increase of 85.39 percent over the same period last year, and deduction of 78 million yuan of non-net profit, an increase of 92.37 percent over the same period last year.
Comments:
Revenue and profit improve quarter by quarter, and growth is expected to accelerate in the fourth quarter: the company's Q1/Q2/Q3 revenue growth rate is-57.61% /-16.45% / 16.15%, respectively, and the growth rate of homed net profit is-138.25% Lexus 32.69% / 85.39%. Since the second quarter, the orders of downstream home decoration enterprises have continued to repair, leading to an improvement in revenue and profit growth quarter by quarter, and Q3 growth rate to become a regular member within the year. Driven by the gold, silver and silver market in the property market, household demand is expected to pick up further, and the company is expected to accelerate growth in the fourth quarter.
Product structure optimization gross profit margin increased, the negative impact of the epidemic subsided: the company's Q3 gross profit margin was 24.27%, an increase of 2.19pct over the same period last year, mainly because the company actively grasped the rise of home health demand in the post-epidemic period and increased the supply of high value-added plates such as low aldehyde and aldehyde-free plates. From the expense point of view, the expense rate in the third quarter decreased by 2.01pct to 12.65% compared with the same period last year, of which the sales / management / R & D / financial expense rate changed from-1.17 /-0.77 / + 0.45 /-0.52pct to 8.22% / 3.51% Accord 1.05% /-0.13%. The rising trend of management fees was terminated in the first two quarters due to factory shutdowns.
Invest in the industrial park to develop port-adjacent processing, and buy back shares to promote employee incentives: in September, the company announced that it planned to invest 5 billion yuan to build a timber industrial park project, with an annual output of 500000 m in the first phase.
The item has been activated. Relying on the location advantage of Qinzhou Port, the company will increase the import and processing of high-quality wood from New Zealand to meet the demand of high-end functional wood-based panels in the market. In addition, the company announced on October 28 that it intends to use its own funds to buy back no less than 1.56% of the company's shares at a price of not more than 4.2 yuan per share, which will be used to implement employee stock ownership or equity incentive plans, fully demonstrating management's confidence in future development.
Profit forecast: according to the three quarterly reports, the EPS is expected to be 0.15 / 0.20 / 0.24 yuan respectively from 2020 to 2022, and the current stock price corresponding to PE is 19.08 / 14.01 / 11.56x. Give a "buy" rating.
Risk tips: downstream demand is lower than expected, the epidemic situation is repeated, real estate regulation and control is higher than expected.