Jiuyang shares (002242) 2018 annual report comment: continuous optimization of product structure and gradual improvement of operations

Event: Jiuyang shares released the 2018 annual report.

In 2018, the company realized operating income of 81.

6.9 billion, an increase of 12 in ten years.

71%; net profit attributable to mother 7.

54 ppm, a ten-year increase of 9.

48%.

The optimization of product structure has driven revenue growth and the steady development of traditional categories.

The company’s product structure has been continuously optimized, and its dependence on a single category has continued to decrease.

In 2018, food processing machine products, nutrition pot products, and western-style electrical products all achieved higher growth, with operating income of 34.

08 billion yuan, 27.

400,000 yuan, 10.

75 ppm, a ten-year increase of 8.

21%, 18.

74%, 20.

99%, induction cooker products and other products maintained steady development.

Among them, Western-style small household appliances series products, both volume and price rose, gross profit margin increased by 2.

29% drove the company’s gross profit margin level to remain stable.

Sales expenses increased, and marketing and channel upgrades were intensified.

Starting from the second quarter of 2018, the company increased advertising in CCTV, World Cup games, etc., and the sales expenses 南京夜网论坛 increased significantly, exceeding 80.

37%, sales expenses for the whole year of 2018, an annual increase of 25.

97%.

At the same time, the company continued to upgrade traditional terminal stores offline in 2018, adding Shopping Mall stores, with more than 100 stores of its own channels.

The “Joyoung Jiuyang Official Flagship Store”, which directly runs the Tmall platform, officially started online, promoting new retail and online and offline integration.

According to the monitoring data from AVC Cloud Network (AVC), Jiuyang Cooking Machine is a brand that has increased its online listing share and increased its growth by 4% in 2018.

64% to 26.

55%, the average product price increases 28 each year.

93%.

Realized operating income of 81 in 2018.

69 ppm, an increase of 12 in ten years.

71%.

Among them, Q4 武汉夜生活网 performance exceeded expectations and realized operating income of 27.

At 31 ppm, the growth rate is significantly ahead of the previous three quarters, with an annual increase of 25.

16%.

The shark synergy is remarkable. The synergy of continuous new product development and the company’s cooperation with the shark ninja is gradually being enlarged. In the second half of 2018, the company’s exports to the shark ninja grew rapidly, thereby achieving overseas sales.

86 ppm, an increase of 102 in ten years.

twenty three%.

In 2019, Shark will launch a whole-house cleaning product specifically designed for Chinese consumers.

In terms of independent research and development, the company continued to expand research and development investment in 2018.98 ppm, a 10-year increase of 11.

66%, with 1,204 new patent applications.

We believe that in the future, the company is expected to continue to benefit from the synergies of SharkNinja and the continuous launch of new products.

Earnings forecast and investment rating: We expect the company’s operating income for 2019-2021 to be 91.

65 billion, 107.

02 billion and 122.

36 billion; EPS is 1.

06 yuan, 1.

26 yuan and 1.

47 yuan, corresponding to 23 for PE.

77X, 19.

88X and 17.

05X, maintaining the company’s “recommended” level.

Risk reminders: 1. Uncertainty in new business development; 2. Raw material prices fluctuate significantly.