Boss Electric (002508): Engineering channel performance is dazzling and profitability continues to improve

Boss Electric (002508): Engineering channel performance is dazzling and profitability continues to improve
Performance summary: In the first three quarters of 2019, the company achieved operating income of 56.300 million, an annual increase of 4.3%; achieve net profit attributable to mother 10.9 trillion, a ten-year growth of 7.3%; net profit after deduction is 10.3 ppm, an increase of 11 years.4%.Among them, Q3 achieved 21 trillion revenue in a single quarter, an annual increase of 10.6%; net profit attributable to mother 4.20,000 yuan, an increase of 18 in ten years.2%; net profit after deduction is 410,000 yuan, an increase of 22 in ten years.2%. Multi-category sales topped the list, with a solid leader.Since the beginning of this year, the overall market of the kitchen appliance industry has weakened, and the sales volume and average price of various categories have shifted. The company’s product performance industry has a stable leader.According to statistics from 深圳桑拿网 Zhongyikang, as of the end of September, the company’s hoods, gas stoves, microwave ovens and other categories have gradually maintained their market share this year, and embedded steam ovens and ovens have also ranked first in the industry.We believe that the shock cycle in the industry stage and the acceleration of industry integration will help leading companies increase their city share and optimize the industry’s competitive landscape. Engineering channel performance was dazzling and profitability continued to improve.In total, the report shows that the company ‘s engineering channels have grown by more than 100%, and the country ‘s top 100 housing companies, major cabinet companies, and home improvement companies have conducted business cooperation with the company.With the steady recovery of residential real estate 苏州桑拿网 completion data, the company’s engineering business is expected to maintain high growth.The increase in the gross profit margin of engineering channels and the price margin of earlier dealer channels, and the rapid growth of the market share of engineering channels will break through and affect the company’s profitability.The company actively adjusted its product structure, strengthened production efficiency and reduced costs, while benefiting from factors such as the decline in raw material prices since the beginning of this year. The report led to a decrease in the company’s main business gross profit margin by 5% and gradually increased by 27pp; company selling expenses 27.7%, maintaining the level of the same period last year; the number of reports, the company achieved a net profit of 19.6%, increasing by 0 every year.7pp. Accounts receivable increased and cash flow remained abundant.The rapid growth of engineering channels has driven the company’s receivables to increase.Reporting intelligence, the company’s accounts receivable continued to grow to 21.400000000.At the end of the reporting period, the company ‘s monetary funds were US $ 4.9 billion, an increase of US $ 400 million over the same period of the previous year, and the quality of cash flow was excellent. Therefore, we believe that the short-term internal engineering channel occupation will not affect the company ‘s cash flow.There is an upper limit to the market share, and accountability will not affect the company’s normal operations. Earnings forecasts and investment advice.The company’s profitability improved more than expected, and we adjusted the company’s EPS for 2019-2021 to 1, respectively.75 yuan, 1.94 yuan, 2.16 yuan, taking into account the rapid development of the company’s engineering channels, real estate completion warmed up, with reference to the average PE in the home appliance industry, given the company 18 times PE in 2020, the target price of 34.92 yuan, upgrade to “buy” rating. Risk Warning: The price of raw materials may fluctuate greatly, and the actual terminal sales volume may vary greatly.