Sofia (002572) Q3 2019 review: Q3 performance under pressure adjustment strategy adjustment in progress

Sofia (002572) Q3 2019 review: Q3 performance under pressure adjustment strategy adjustment in progress
Q3 performance was under pressure, and net profit increased after deductions.Realized operating income 53.1.2 billion, +4 a year.03%; net profit attributable to mother 7.200 million, +4 a year.05%; net profit after returning to the mother 6.370,000 yuan, at least -4.49%; quarterly, Q1 / Q2 / Q3 achieved operating income of 11 respectively.85/19.57/21.69 ppm, at least -4.67% / + 12.18% / + 2.42%; net profit attributable to mothers1.07/2.84/3.29 trillion, each year +3.69% / + 6.84% / + 1.87%; net profit after deduction is 0.79/2.69/2.89 trillion, -18 a year.32% / + 7.67% /-9.77%.Facing the cold winter of the industry, due to the 杭州桑拿 business strategy of one city and one business in the early stage, the company opened up new channels such as assembly, and the speed of the bulk is expected gradually. In the face of challenges, the company actively adjusts its strategy to replace the completion of the completion of the recovery. Cabinets and wooden doors have a high growth rate, and the proportion of bulk channels continues to increase.In terms of categories, Sofia wardrobes (including OEM furniture), Smi custom cabinets, and wooden doors achieved operating income of 45.97, 5.5, 1.3.5 billion, +2 each year.56%, +12.81%, +25.74%, the growth rate of cabinets and wooden doors is faster, and the growth rate of wardrobes is relatively flat, but the unit price of customers continues to increase, each time +5.14% to 1.120,000 yuan / unit, the higher unit price of Kang Chunban is the main thrust, Kang Chunban’s sales share increased from 8% to 20%.In terms of different channels, the first three quarters of Sofia’s wardrobe dealerships were directly operated and the proportion of bulk sales was 85.42%, 3.16%, 10.97%, the proportion of bulk relative to H2 (10.84%) increased slightly, and the contribution continued to increase. New products dragged down gross profit margins, and investment income drove higher net profit margins.In terms of gross profit margin, the gross profit margins for wardrobes and their accessories, cabinets and their accessories, wooden doors and furniture were 40.6%, 28.35%, 13.96%, 14%, Decade -0.42 points, +1.01, + 3.81, -2.21pcpts.Taken together, the gross profit margin of the first three quarters was -0 per second.63pcpts to 37.25%, mainly due to the increasing proportion of new products with low gross profit margins.With the expansion of cabinets, the profitability of wooden doors continues to increase.The cost rate during the period +0 per second.96 to 21.48%; among them, the increase of advertising costs and labor costs, sales expense rate +0.72pcpts to 10.55%; increase in labor costs, management expense ratio (including R & D expense ratio2.42%) Decade +0.03 tablets to 10.56%; interest on loans and discounted bills increased, and financial expense ratio increased by +0.21 pieces to 0.37%.Q3 Shenzhen Sophia sold part of the stock, and the investment income was +52.78%, driving the start of net interest rate +0.27 pieces to 13.72%. The bulk business has a slight impact on cash flow and receivables, but the overall cash flow and operating capacity are good. In terms of cash flow, operating cash flow was achieved in the first three quarters 6.03 trillion, +16 a year.75%, discounted bills to a certain extent alleviate the cash pressure of bulk business, cash flow performance is stable.In terms of operating capacity, the inventory turnover days were 27.05 days, down by 1 every year.51 days; increased support to dealers, and the development of bulk business, accounts receivable turnover days17.25 days, a year up 7.72 days. The large home fusion store expanded at a high speed, and the strategy of the packaging channel was adjusted.As of the third quarter of 2019, Sofia’s channels opened 77 new regions, eliminated 62 dealers and regions, and broke through 1,500 dealers. The number of stores changed and the adjustment of dealers and channels decreased.At the supermarket store.The development of custom cabinets and wooden door stores has been steadily progressing, with a net increase of 3, 6 to 840, and 305.Large home furnishing stores grew faster, with a net increase of 15 to 191.In terms of online channels, the proportion of channels continues to increase. The total number of e-commerce drainage customers has increased from 16% to 25%, and the proportion of drainage in first-tier cities exceeds 45%.In terms of assembly channels, the company actively adjusts its strategy and strengthens exclusive cooperation with assembly companies. The goal is to reach 100 assembly distributors by the end of the year, while continuing to encourage distributors to develop assembly channels. Investment suggestion: The company’s operation should remain stable, the business strategy of the industry will be gradually adjusted in the cold winter, and the custom-made veterans will gradually start again. It is predicted that the company’s EPS in 19-20 will be 1.11 yuan, 1.25 yuan, corresponding to PE of 16X, 14X, maintain “recommended” investment rating. Risk warning: the price of raw materials rises; domestic channel expansion is less than expected; actual sales are lower than expected.