Depth * Company * Chenguang Stationery (603899): Excellent Cultural and Creative Products Smoothly Promote Product Structure Optimization
The company released its 2018 annual report: the report integrated revenue to achieve 85.
300 million (+34.
3%), realizing net profit attributable to mother 8.
07 billion (+27.
3%), non-net profit attributable to the mother 7.
5 billion (+37.
Among them, 18Q4 achieved revenue of 24.
10,000 yuan (+29.
4%), net profit attributable to mother 1.
8.2 billion (+27.
1%), deducted non-net profit1.
7.7 billion (+70.
It is planned to distribute cash dividends to all shareholders for every 10 shares.
00 yuan (including tax).
Proposed to 1.
93.2 billion acquisition of 56% equity of Ashuo Stationery (Shanghai) Co., Ltd.
Key points of support level Revenue growth remained stable, and new business continued to grow at a high rate.
The reported company’s revenue maintained a high growth rate, the traditional business maintained steady growth, every 16% growth rate (in line with Q1-3), the new business Chenguang Klip, Chenguang Technology, and Chenguang Life Museum achieved rapid growth (YoY + 90%), of which Chenguang Klip achieved revenue of 25.
900 million, an increase of 106 every year.
8%, with an average net profit of 3,213 million, and the revenue of living museums (including sundry clubs) 3.
06 million, an increase of 49 per year.
Channel reform + high-quality cultural and creative strategy to promote continuous optimization of product structure.
Reporting average, Chenguang retail terminals reached 7.
60,000 stores, the quality of single stores has also been continuously improved. Driven by the boutique cultural and creative strategy, the proportion of high-margin products has continued to increase. The company ‘s various lines have expanded their gross profit margins. Writing instruments34.
67pct), student stationery 33.
96pct), office stationery 18.
67%), the average unit price of products also increased significantly.
99%), student stationery 0.
43%), office stationery 2.
Drive the company’s overall gross profit margin to 0.
1 point, Q4 gross profit margin increased by 2.
8pct, plus management cost savings, Q4 single-quarter deduction of non-net profit increased by 70%, significantly exceeding revenue growth.
Klip’s service capabilities continue to increase.
In 2018, Klipp was shortlisted by the central government procurement, the State Administration of Taxation,重庆耍耍网 the Shenzhen government and other government projects, as well as central enterprises such as China Southern Power Grid from 2019 to 2020, Postal Savings, China Construction Bank, and financial companies such as China Post Insurance and Guangzhou Rural Commercial Bank.
Five central warehouses have been expended in the country, and the category has been continuously expanded, and the service capacity has been further enhanced. After the period of asset expansion, 19 years will contribute more incremental profits.
The business model of large retail stores has entered a period of rapid expansion.
At the end of the reporting period, the company already had 255 large retail stores, with a net increase of 78. The new stores were mainly Jiumu Sundries. We estimate that we have reached the initial goal of 100 stores.
The company continues to improve the goods distribution model and service model of boutique cultural and creative stores. From the third quarter, the sundries club opened to join and entered a period of rapid expansion. It has now entered 32 cities.
Our grass-roots research believes that the company’s miscellaneous goods category has been constantly improved and its product influence has increased. The 19-year franchise expansion is worth looking forward to.
It is estimated that the company’s brand and channel advantages have consolidated the leader of stationery, new business has maintained rapid growth, traditional business has developed steadily, and product structure optimization has continued to improve profitability. We have raised our 2019-2021 revenue forecast to 1.
61 yuan, an increase of 28 a year.
4% / 21.
4% / 17.
6%, corresponding to 2019PE31X, maintain BUY rating.
The main risks faced by ratings are the replacement of the growth rate of Klipp, and the expansion of the channel of the miscellaneous agency.