Zhejiang Yongqiang (002489): Significantly improved performance and expanded product channels steadily

Zhejiang Yongqiang (002489): Significantly improved performance and expanded product channels steadily

Event: The company announced the 2019 third quarter report, and the first three quarters achieved revenue of 30.

37 ppm, an increase of 15 in ten years.

55%, net profit attributable to mothers3.

US $ 5.7 billion, a previous substantial increase of 418%; of which, operating income in the third and third quarters2.

6.8 billion, down 14 each year.

14%; net profit attributable to mother 100.

740,000 yuan, an increase of 101 in ten years.


Comments: 1. The revenue growth rate has improved, the coverage has continued to expand, the company ‘s revenue has increased slightly in the first three quarters, and the net profit has increased, and the base has been reduced in 2018.And companies have certain pricing power, leading to gross profit margins that are still complicated to rise even under the influence of trade frictions5.

1 target; indicator. In response to the Sino-US trade friction, the company formulated marketing strategy adjustments and continued to cultivate the European market. The sales of outdoor leisure and home furnishing products in Europe and the United States have risen.

At the same time, the company continued to improve the construction of the raw material supply system and expanded its market share in high-end tents and umbrellas.

The company’s internal efficiency has improved, and operating costs have fallen slightly.

The company’s Q3 single-quarter revenue basically remained stable, and its net profit further increased by 101 due to investment income.

46%, deducting non-net profit fell 106 every year.


2. Profitability rebounded markedly, channel 深圳桑拿网 expansion steadily pushed forward Q3 comprehensive gross profit margin27.

91%, net sales margin 11.

76%, the annual increase rate exceeds.

The furniture manufacturing industry suffers from the adverse factors of industry downturn and intensified competition, and its long-term development is slow.

The company’s sales revenue in 2019 has increased in 2018. At the same time, the company’s gross profit margin has increased due to the comprehensive factors such as the fluctuation of the RMB exchange rate and the increase in production efficiency.

At the same time, according to the objective factors of shortening the radial direction of the product, the company has developed other winter supplies such as flame furnaces. The order is expected to reach about 200 million, which also partially smoothes the company’s seasonal 北京SPA会所 revenue changes, so the company’s performance in 2019 is quite obviousGet better.

3. Expansion of product series, devaluation of the local currency brings a significant recovery in profits, maintaining the “strongly recommended-A” rating company as a leading company in the field of outdoor leisure furniture, corporate product specifications, customer channels and product price systems have advantages in 2019 The expansion of product categories, the devaluation of the local currency and the significant recovery in investment income have brought about a significant rise in profitability. We look forward to 2019?
Net profit in 2021 will be 5.

4.0 billion, 5.

8.3 billion, and 6.

8.9 billion, corresponding to only 15 of the current PE.

5 times, maintain “strongly recommended-A” investment rating.

Risk warning: The downward pressure on the industry is increasing, and the risk of RMB appreciation.