Oupai Home (603833): Predicts 15% increase in net profit in the first half of the year.

Oupai Home (603833): Predicts 15% increase in net profit in the first half of the year.

Performance preview maintains outperforming industry forecast earnings growth of 15%. The company released 1H19 performance bulletin to achieve revenue of 55.

100 million, an increase of 13 in ten years.

7%, net profit attributable to mother 6.

33 ppm, an increase of 15% over a ten-year period, in line with our estimates of revenue and profit growth close to 15% in the UN report.

By quarter, Q1 / Q2 company revenues increased by 15 each.

6% / 12.

5%, net profit attributable to mothers increased by 25.

1% / 13.


  Attention point 1. In the first half of the year, both revenue and profits increased by double digits, and market share continued to increase.

In 1H19, the sales area of commercial residential buildings decreased by 1%, and the household industry still faced pressure from falling external traffic and increasing internal competition.

As the leader of the custom home furnishing industry, Opai 四川耍耍网 can achieve adversity growth and increase market share in the first half of the year, mainly due to: 1) the channel end, expanding the multi-channel model, the continuous decline of home store stores, large home furnishings, 2B engineering businessAccelerate development and increase online drainage; 2) On the marketing side, focus on “3.

15 “,” 5.

1 ”Two major promotion conventions launched explosive packages, which increase marketing efforts while improving marketing efficiency and seize industry traffic; 3) On the product side, we expect solid growth in cabinets and wardrobes in the first half of the year, rapid growth in wooden doors and bathrooms, and continued expansion of the large home product lineextend.

  2. A large proportion of major shareholders participated in the placement of convertible bonds, and the fund-raising and investment projects helped the company grow sustainably and rapidly.

Recently the company issued no more than 14.

95 billion convertible bonds, the company’s controlling shareholder Yao Liangsong (holding company 68.

54% shares) promised to prioritize 8 trillion placements, accounting for 54% of the total issue, demonstrating confidence in the company’s continued growth.

In 2018, the company’s production capacity of cabinets / closets / bathrooms / wooden doors was 690,144 / 30 / 460,000 sets (樘), and the production capacity can be replaced by more than 90%. According to the company’s announcement, the three convertible bond investment projects have reached full production capacity.(Company estimates after 4 years) 25 cabinets / closets / wood doors capacity will be added.

8/198/95 million sets (樘) will be the basis for the company’s long-term sustainable growth or replacement.

  3. Multi-channel model, large home product line helps custom leader Hengqiang.

Facing the trend of decentralized terminal traffic, the company increased the construction of a multi-channel model. Looking at the expansion, we expect that the self-contained large homes will contribute about 800 million in revenue, and the 2B bulk business will also maintain rapid growth.

At the same time, relying on the company’s successful experience in extending the product line from cabinets to wardrobes, we expect that the long-term wooden doors and bathroom products category will maintain rapid growth.

In the long run, we are optimistic that the company’s market share will continue to increase, and competition barriers will deepen.

  Estimates and recommendations We maintain the company’s 2019/20204.


The profit forecast of RMB 35 remains unchanged. The current targets correspond to 23/19 times P / E respectively. Re-outperform the industry rating and maintain the company’s target price of RMB 136, corresponding to 30/25 times P / E in 2019/2020. There may be 32%upside potential.

  Risk real estate forecasts exceeded expectations, and raw material prices rose more than expected.