Daya Shengxiang (000910): Net profit of 1-3Q increased by 6% Concerned about the development trend of the company after internal governance improvement
1-3Q19 results are in line with market expectations The company announced 1-3Q19 results: revenue 51.
14 ppm, an increase of 0 in ten years.
1%; net profit attributable to mother 4.
68 ppm, a five-year increase of 5.
8%, in line with market expectations.
By quarter, Q1 / Q2 / Q3 revenues increased (decreased) by 1 respectively.
2%, net profit increased by 9.
7% / 9.
5% / 3.
Development Trends 1. Revenue of 1-3Q companies remains stable.
1-3Q company achieved zero revenue growth.
1%, of which the third quarter revenue growth has improved (+4.
2%), looking at the sub-sectors: 1) The retail floor of wooden flooring is facing downward land flow, and the pressure of other channels for diversion, we expect revenue to continue to decline; 2) The wooden flooring tooling business benefits from the promotion of hardcover housing policies and the company’s 西安耍耍网 outstanding brandWe expect revenue to maintain rapid growth and further increase market share; 3) We expect revenue to remain stable in the wood-based panel business.
2. Increased profitability.
1-3Q company’s gross profit margin increased by 0.
4ppt to 36.
3%, mainly driven by further optimization of the company’s product structure (increasing the proportion of multi-layer solid wood flooring), multiple declines in raw material prices and other factors; during the period, the expense ratio increased by 0.
1ppt to 24.
6%, of which the sales expense ratio decreases by 0 every year.
2ppt, the cost control effect is appropriate, and the management + R & D cost rate is increased by 0.
6ppt, mainly due to the increase in R & D investment, the financial expense ratio decreased by 0.
3ppt, the company’s net interest 天津夜网 rate increased by 0 under the comprehensive impact.
5ppt to 9.
3. The equity transfer between the actual controllers is completed, and the company’s follow-up operation development trend is concerned.
According to the Air Force announcement, of the company’s four actual controllers (Dai Pinhe, Chen Qiaoling, Chen Jianjun, Chen Xiaolong), Ms. Dai Pinhe holds 31 of them.
55% of Italian Borite Investment Management Co., Ltd. (the company holds 63% equity of Daya Technology, the controlling shareholder of the listed company) was assigned to another actual controller, Chen Jianjun., And become the largest shareholder of the listed company, the company ‘s actual controllers are allocated a temporary notice of the first level of distribution, and are concerned about the subsequent development of the business after the improvement of the company’s internal governance.
Earnings Forecasts and Estimates We maintain our 2019/2020 earnings forecasts.
56 yuan unchanged.
Currently corresponds to July 2019/2020.
4x / 6.
7 times price-earnings ratio.
Maintaining an outperform industry rating and a target price of 14 yuan, corresponding to 10 times the 2019 price-earnings ratio and 9 times the 2020 price-earnings ratio, which has always been 34% upside.
The prices of risky raw materials fluctuated sharply, and land revenue continued to increase.