Operating income rose slightly compared with the same period last year, while gross profit margin declined.
In 16 years, the company achieved revenue of 690 million yuan, an increase of 2.6%. In terms of business, revenue from residential decoration design and construction business was 500 million, down 2.0% from the same period last year; revenue from sales of building materials and wood products was 160 million, up 15.2% from the same period last year, offsetting the decline in revenue from residential decoration design and construction business to a certain extent. From a regional point of view, the business of companies in Shenzhen (accounting for 57.7% of the total business) increased by 3.0%, while that in Foshan and Guangzhou increased by 12.2% and 22.9% respectively. While stabilizing the leading position in Shenzhen, the company actively developed the market in the Pearl River Delta region. Excluding the impact of business reform, the same caliber gross profit margin was 30.4%, down 0.6 percentage points from 15 years. Mainly due to the decline in gross profit of residential decoration design and construction business.
The rate of expenses for the three items is relatively stable, and the net profit is higher than the same period last year.
The company's three-item expense rate in 16 years was 20.3%, 0.7 percentage points lower than that in 15 years. Among them, the rate of sales expenses decreased by 1.3 percentage points, mainly due to the reduction of advertising fees, business network rental fees and depreciation amortization expenses; the rate of management expenses increased slightly by 0.6 percentage points; and the rate of financial expenses was basically stable. The net profit of the company returned to its mother was 50 million yuan, an increase of 5.2%.
The company's cash-to-income ratio is 1.10, which changes little; the cash-to-cash ratio is 0.91, up 0.05, and the operating cash flow has worsened. However, cash inflows from IPO's fund-raising activities ensure that the company has plenty of cash on hand.
Promote the "integrated" service system and support the market development of the four major brands
From marketing, design, construction to after-sales service, the company has gradually built itself into a comprehensive service provider of home decoration and home decoration for middle and high-end customers and the most complete industrial chain. and through information management means to make each link of the industrial chain smooth docking, and traditional decoration team to form a significant distinction. The company's four major brands correspond to different niche markets. The company's IPO investment raising projects point to the four directions of marketing network construction, furniture production construction, logistics distribution center and design center integration and upgrading, to further enhance the design capacity and strengthen the construction of the company's comprehensive supporting service capacity, with a clear strategic direction, and is expected to further enhance the competitiveness of the existing business in the Pearl River Delta region. At the same time, the company actively develops the public wear business (this business has increased by 187.0% in 16 years compared with the same period last year), and promotes the customer VR experience, following the main line of the future development of the home decoration industry.
Investment suggestion
The company actively promotes the "integrated" service system, the industrial chain is complete, and the listing fund investment project will further strengthen the company's advantages in design, marketing, furniture production, logistics and distribution.
Based in Shenzhen, the company promotes to the Pearl River Delta and even the whole country, with strong business replication. After the fund-raising is in place, the follow-up growth is worth looking forward to. Coverage for the first time, giving a "overweight" rating. It is estimated that the EPS of the company in 17-19 is 0.83 EPS 0.91 gray PE is 1.00 times higher than that of 81-74-67.
Risk hint: business progress is not up to expectations, and the real estate boom is declining.
