Semi-annual report. The company's 20H1 realized income, net profit attributable to listed company shareholders and net profit attributable to non-listed company shareholders were 1.317 billion yuan, 128 million yuan and 118 million yuan respectively, an increase of-11.16%,-9.99% and-1.91% respectively over the same period last year. In the second quarter, the company's operating income and net profit attributable to the parent company changed by-0.64% and 12.65% respectively compared with the same period last year. At the same time, the net cash flow of the company's 20Q2 operating activities is 315 million yuan, which is significantly improved compared with-1 million yuan of 20Q1 and-48 million yuan of 19Q2. The improvement of operating cash flow is mainly due to the maturity of bills receivable and the increase of accounts payable.
Domestic sales recovered significantly in the second quarter, while export sales dragged down revenue growth, and we expect future income growth to be steadily upward.
The company's 20Q2 retail and engineering revenue reached 408 million yuan and 224 million yuan respectively, with year-on-year changes of-3.32% and 30.99% respectively, and domestic sales increased by 6.58%, which recovered significantly on the basis of-32.84% of Q1.
Affected by the epidemic in the second quarter, exports fell by-18.88%, dragging down income growth. With the gradual decline of the impact of the epidemic on economic activity, we expect that the worst period of income growth has passed, and the future income growth will gradually increase.
20Q2 gross margin and net margin are optimized, and we expect that there is room for further improvement in profit margins in the future.
The company's 20Q2 gross profit margin was 34.65%, up 0.59% from the same period last year, and the net profit rate was 12.58%, up 1.07% from the same period last year. The company still has room to reduce costs and increase efficiency, with future revenue growth, economies of scale, profit margins are expected to further improve.
Complete bathroom to achieve a breakthrough from 0 to 1, began to contribute income. HUIDA has been in trial operation for 19 years, and 20H1 contributed 11.66 million yuan in income. The development momentum of the integrated bathroom industry is good, although the company's production capacity is not completed early, but we think that the company's integrated products are of excellent quality, complete parts, and obvious advantages. 20H1 company has achieved a breakthrough from 0 to 1, and is expected to gradually become the first echelon of integrated bathroom in the future.
New Huida, a new starting point, a new future. We believe that the bathroom is a relatively special category of consumer building materials, especially in the two dimensions of strong consumption attributes and high barriers. In the long run, we think that sanitary ware is a good industry, first, intelligent and integrated to extend the industry boundary; second, reference to mobile phones, household appliances and other categories, domestic status will continue to strengthen in the long run; third, the industry is still scattered to provide soil for leading development. At the same time, positive changes have taken place in the company. The retail side has increased brand building, was selected as a big brand, and became one of the three enterprises visited by Premier Li Keqiang at the opening ceremony of the 127th Canton Fair. The project side has signed cooperation agreements with R & F Real Estate, Poly Real Estate, Wanda Group, Chuang Chuang Real Estate and so on. At the same time, in terms of management, the company launched the talent planning strategy in June 20. We believe that the company's brand, channel and management are optimized, and it is expected to grow into an industry leader in the bathroom track in the future.
Profitability and valuation. We estimate that the EPS of the company from 2020 to 2022 will be 0.82,1.12,1.54 yuan per share respectively, combined with PE and PS valuation methods, corresponding to the fair value range of 22.02-26.42 yuan per share in 2020, which is "better than the big market" rating.
Risk hint. The epidemic greatly slowed down the demand, and the progress of entering the real estate collection system was not as good as expected.