Jianlang Hardware (002791): Channel Product Co-Driving Profit Improvement Performance Continues to Exceed Expectations

Jianlang Hardware (002791): Channel Product Co-Driving Profit Improvement Performance Continues to Exceed Expectations

Event On October 25, 2019, Jianlang Hardware released the third quarter report of 2019.

  The company achieved operating income of 35 in the first three quarters of 2019.

75 ppm, an increase of 32 in ten years.

21%; realized net profit attributable to shareholders of the listed company was 2.

690,000 yuan, an increase of 129 in ten years.

94%; net profit attributable to shareholders of listed companies in place of non-recurring gains and losses was 2.

580,000 yuan, an increase of 137 in ten years.

62%.

  By quarter, the company achieved revenue in the third quarter of 201914.

86 ppm, an increase of 32 per year.

56%; realized net profit attributable to shareholders of the listed company is 1.

49 ppm, a 73-year increase of 73.

52%; net profit attributable to shareholders of listed companies to replace non-recurring gains and losses is 1.

400,000 yuan, an increase of 70 in ten years.

18%.

  The company’s performance continued to exceed expectations.

  Our analysis and judgment of the channel sinking layout + new category expansion, performance improvement and improvement. The company’s third quarter performance continued to improve, and net profit attributable to mothers gradually increased. The company’s sales channel sinking layout and product line extension were the company’s growth drivers.At the same time, domestic business expense control and other improvements have improved gross profit margins, driving the company’s profits to increase.

  Since 2019, the company continues to increase smart locks and other smart home, sanitary and hardcover room hardware products, and has begun to enter security, underground comprehensive pipe gallery, natural fire smoke and intelligent ventilation windows, labor safety protection products, fireproof and waterproof materials, mechanical and electrical equipmentWith precision instruments and other business fields, it can basically meet the one-stop procurement requirements for various types of construction hardware such as public buildings, commercial buildings, real estate, subways, airports, and pipe corridors.

  In terms of products, the company’s household products and other construction hardware products in the new industry have grown rapidly, becoming a new driver of the company’s growth, and the overall level of door and window hardware has remained stable.

  The company actively expands channel construction and currently has nearly 500 sales outlets at home and abroad.

At the same time, the company ‘s self-designed and developed one-stop building materials collection and procurement service platform “Jianlang Yuncai” runs smoothly. We expect to switch the company ‘s product presence and information construction. The efficiency of the platform will further increase. The gross profit margin will continue to rise, the cost control will be good, and the profit will beIn terms of ability to continuously improve gross profit margin, the company’s gross profit margin increased in the first three quarters of 2019.

97 points to 40.

29%.

In terms of net interest rate, the company’s net interest rate increased by 3 in the first three quarters of 2019.

20pct to 7.

53%.

We estimate that the company ‘s high gross profit margins for door and window hardware, household products will increase, the ability to control fees will increase, and the state ‘s tax and fee reduction policies will support the company ‘s profitability.

  In terms of period expenses, the company’s sales expense ratio, management expense ratio, research and development expense ratio 佛山桑拿网 and financial expense ratio changed by -1 in the first three quarters of 2019.

52 points / -0.

65pct / + 0.

32pct / + 0.

10 points to 18.

77%, 5.

45%, 5.

06%, 0.

17%.

The main reason for the increase in financial expenses is the decrease in interest income and the increase in debt expenses. The decrease in sales and management expense rates is mainly due to the scale effect and per capita efficiency.

Under the background of good cost control, the company’s net interest rate fell in the first three quarters of 20191.75pct to 29.

44%.

  Accounts receivables increased, operating and financing cash flow improved The company’s accounts receivables in the first three quarters of 201917.

79 million, compared with 9 at the end of 2018.

960,000 yuan increased by 78.

57%, first of all, the resetting factors of sales growth and payment recovery are concentrated at the end.

The advance payment is 0.

70 million, compared with 0 at the end of 2018.

22 ppm increased by 223.

07%, the increase was mainly due to the increase in prepaid materials.

  Reported company operations, cash flow from financing activities improved, investment cash flow decreased.

In the first three quarters of 2019, the company’s net cash flow from operating activities was -1.

8.3 billion, an annual increase of 63.

11%, preliminary increase in sales receipts.

Net cash flow from financing activities was 3.

2.8 billion, an increase of 68 every year.

58%, the first is the increase in short-term loans and discounted bills.

Net cash flow from investing activities is -1.

59 trillion, down 35 a year.

54%, mainly due to factory construction supplements and increased foreign investment.

  Investment suggestion: The company is positioned as an integrated supplier of construction hardware, with multi-category development, active expansion of channels, and R & D and strength leading the industry.

We estimate that the company’s operating income for 2019-2020 will be 50.

46, 63.

380,000 yuan, an increase of 30 in ten years.

95%, 25.

61%; net profit attributable to mother is 3.

29, 4.

28 ppm, an increase of 91 in ten years.

28% 30.

06%; corresponding P / E is 28.

9X, 22.

2x, maintain “Buy” rating.

  Risk warning: raw material prices are rising, industry competition is intensifying, and new products and new business expansion are less than expected.