Diou Home Furnishing (002798): The best beneficiary variety for ceramic tile + bathroom two-wheel drive hardcover volume

Diou Home Furnishing (002798): The best beneficiary variety for ceramic tile + bathroom two-wheel drive hardcover volume

1) Diou is composed of Emperor and Oushennuo: Emperor is the leader of acrylic sanitary ware, with stable performance growth and strong profitability (18 years revenue 6)

3 ‰, one year + 17%); Ossino is 南宁桑拿 the leader in tile engineering, with rapid expansion of performance and outstanding growth (18 years revenue 36)

800 million, + 53%; net profit 3.

600 million, + 60%), and the synergy effect is significant.

2) Ceramic tile industry: The demand side has ample space (total market of 5000 trillion, urban residential market of 113.4 billion), stable upward (18 years sales + 4%); supply-side excess capacity (70% utilization rate), scattered layout (CR5 less than 5%), But can be replaced by miscellaneous brands, full renovation speeds up the expansion of leading faucets, environmental protection pressure eliminates backward production capacity, and concentration increases.

3) Oshennuo engineering business: ①Competitive advantages: early start, good reputation and significant first-mover advantage; mature operation 深圳spa会所 management and strong service ability.

②Favorite for the future: The first-line real estate customers have strong stickiness (the company accounts for 60% / 42% of Country Garden / Vanke’s supply) to ensure stable income; the hardcover penetration rate has accelerated (from 23% in 18 to 30% in 20)The demand for hardcover business is high, which will drive the increase in the number of customers and customer penetration rate of Connaught, and contribute to the main future increase.

③ The maximum value, the scale effect of the ceramic tile is significant, the engineering business has a low SKU, fewer conversions, and a gross profit margin of 5 pct higher than that of retail.

4) EUGENO retail business: ① rich in SKUs, high-quality products, strong R & D strength, and building a moat; engineering advantages strengthen word of mouth, enhance service, expand capabilities, and nurture retail.

② In the future, the investment promotion of distribution channels will accelerate, and the small B-end will accelerate retail expansion.

5) Emperor Sanitary Ware: ① Sanitary ware industry: The sanitary ware market is mature and stable, urbanization is driving up the scale, consumption upgrading and environmental protection are promoting concentration.

Among them, acrylic sanitary ware is personalized and practical, and its proportion is expected to rise.

②Emperor: The company is an absolute leader in acrylic sanitary wares. Differentiated strategies open up the market and extend upstream control of quality and cost.

The company’s southwest channel is strong, cross-domain expansion + improvement of same store, stable cash flow and performance.

Earnings forecast: We expect Dior’s 2019-2021 EPS to be 1.



77 yuan, corresponding to PE 12.



2 times.

We are optimistic about the stable performance of the emperor + the rapid expansion of Ossino, the future growth space is expected, and the first coverage will give a deep recommendation level.

Risk Warning: Real Estate Completion Continues Rapid Expansion, Retail Expansion Is Less Than Expected