Xinbao Shares (002705) Interim Review: Domestic Sales Revitalized and Exports Steady Growth
Event description: The company disclosed its 2019 Interim Report.
2019H1 company achieved revenue of 40.
400 million, a year-on-year increase of +7.
4%; net profit attributable to mother 2.
400 million, a year-on-year increase of +73.
9%, realized deduction of non-attributed net profit2.
400 million, a year-on-year increase of +48.
Among them, 19Q2 achieved a revenue of 21 in a single quarter.
600 million, a year-on-year increase of +11.
2%; net profit attributable to mother 1.
500 million, a year-on-year increase of 深圳桑拿网 + 59%.
700 million, a year-on-year increase of +33.
Export sales have grown steadily, and domestic sales have regained vitality: In terms of export sales, revenue in 2019H1 was 32.
800 million, accounting for 81 of total revenue.
2%, a year-on-year increase of +3.
4%; gross profit margin 18.
8%, +2 per year.
7pct, contributed by exchange rate and cost.
The demand for small appliances in Europe and the United States is relatively small and rigid, and the production capacity is concentrated in China. It is difficult to be replaced by overseas brands in the short term. It is less affected by the trade war, and H1 exports have grown steadily.
In terms of domestic sales, revenue was 7.
600 million, a year-on-year increase of +28.
9%, accounting for 18 of total revenue.
8%, up from 4 previously.
1pct, gross profit margin 32.
3% for ten years + 1 pct.
The company’s agent Mofei brand, H1 bursts out frequently, and quickly expands channels offline; At the same time, the company’s subsidiary brands such as Ming Zhan, Ge Lan, Lycra, rely on Xiaohongshu, Douyin and other online content e-commerce channels,It is expected to replicate the internet celebrity explosion strategy and further gain growth.
The company is committed to creating a multi-brand product matrix, and cultivating its own brand team. It has set up a special team to conduct market analysis and product planning. It has increased spending on sales staff training and advertising, and increased sales expenses by 36 years.
The 19H1 exchange rate improved earnings and cash flow improved significantly.
Affected by fluctuations in the exchange rate of RMB against the US dollar, exchange losses have been reduced by at least 647 million, and investment losses and loss in changes in fair value caused by forward foreign exchange contracts have decreased by 2911 million, which has improved profitability.
Net cash flow from operating activities of the company 5.
1 ppm, of which the sales of goods and the provision of services received a cash increase of 14 per year.
8%, the ability to collect money is improved.
Focus on the company’s premium supply chain value.
Based on foundry production, the company achieves full-category coverage from kitchen appliances, domestic appliances to a protective appliance, accumulated design and development experience, establishes a complete supply chain system, and takes full advantage of scale to achieve cost reduction control and efficiency improvement.To ensure profitability.
Under the de-branding trend, Xinbao, as an ODM manufacturer with both quality control and cost control capabilities, can attract more from e-commerce platforms (Netease carefully selected, fight a lot) and channels (Xiaomi Youpin, Mingchuang Youpin)) Cooperation, the future prospects are expected. Risk warning: The promotion of domestic brand products exceeds expectations, and Sino-US trade frictions intensify.