Diou Home Furnishing (002798) Company Comments: Engineering Retail Continues to Achieve Performance Growth
Event: The company announced that it expects the net profit attributable to shareholders of listed companies in the first three quarters of 20193.
US $ 2 billion, an annual increase of 45% -55%; of which, the net profit attributable to shareholders of listed companies in the third quarter.
870,000 yuan, an annual increase of 40% -65%.
Engineering and retail sales are underway, and performance growth continues.
The merger of this report, through the synergy effect of the company’s high integration with its subsidiary Foshan Oushenuo Ceramics Co., Ltd., 南京桑拿网 takes advantage of the first-mover advantage accumulated in the self-operating model of the engineering business for many years, which is in line with the development of new real estate hardcover housingTrends, as well as retail model innovation and channel sinking layout, the company’s operating performance increased in the first three quarters of 2019, and the company’s government subsidies increased compared to the same period last year.
The penetration rate of hardcover rooms continued to increase, and the business at the engineering end continued to increase.
Aowei Cloud Real Estate big data shows that in 2018, the opening scale of finely decorated commercial residential buildings nationwide increased by nearly 60% to 2.53 million units, and the market penetration rate reached 27.
5%, from January to August 2019, the annual increase in residential hardcover newly opened properties increased by 15.
9%, opening sets have grown for decades.
4%, the penetration rate of hardcover housing market in 2019 is expected to further increase.
Diou Home Furnishing’s ceramic tile business maintains a high-speed growth trend. After many years of experience in the camp engineering service team, Ousino has accumulated rich experience in providing high-quality service capabilities and a complete service system for group procurement.The scale of cooperation with existing clients such as Country Garden, Vanke, Evergrande has further increased. While deepening the cooperation with new real estate developers such as Agile, Rongsheng, R & F, Xuhui, China Resources Land and other large-scale real estate developers, it has gradually cooperated with Agile, HelenburgHezheng, OCT, Jingrui, Dianjian, Hongtong and other large and medium-sized real estate developer clients have established cooperative relations to further consolidate the company’s rapid development momentum.
As the company’s production capacity is further released, the proportion of outsourced procurement is reduced, and the effect of scale has helped to reduce costs and increase efficiency.
The company has a major market share in the tooling market.
By 2020, the urbanization rate will reach 60%, and the newly-completed housing will have a clear plan that accounts for 30% of the total decoration area. There is still room for potential orders for individual customers.
The retail channel is sinking, and the “1 + N” strategy is worth looking forward to.
Connaught adopts multiple channel layouts and deep cultivation in retail channels to accelerate network coverage, implement delivery and service sinking: divide county-level blank spots through 1) “full network deployment”; 2) promote first-tier and second-tier cities to accelerate “urban”Join the partnership, smart community service shop “in-depth layout.
At the same time, using the engineering service experience accumulated by Ossino over the years to help dealers develop the assembly and tooling market, and provide a new growth model for retail development.
As of June 30, 2019, there were more than 800 dealers and more than 2,400 terminal stores. The number of dealer stores increased by 700 from the end of last year. We expect the number of dealers to continue to grow.
In September, the company released the “1 + N” strategy. “1” represents building ceramics, and “N” represents various related categories that extend around ceramics. We believe that the “1 + N” strategy is that the company’s ceramic R & D capabilities and market size are maturingThe positive results are worth looking forward to.
The decline in completion data continued to narrow, and the area of housing completion from January to August gradually narrowed.
0%, the decline continues to narrow by 1 from the previous value.
3 units, accounting for about 70% of the completed area of the residential area9.
6%, a decrease of 0 narrower than the previous value.
At 9 levels, we are optimistic about the addition of construction to completed projects. The growth rate of completed projects has been improved for two consecutive months. The ceramic tile industry, as a real-time post-renovation industry, will improve the completion data or drive ceramic tile sales.
Investment suggestion: Under the expectation that the tooling business will continue to increase in volume and the shared marketing channels will exert synergies, we expect the company’s performance to be further released.
Based on this, we expect the company’s operating income for 2019 and 20 to be 55.
6.6 billion; net profit attributable to parent company.
04 ppm; corresponding EPS is 1.
31 yuan, 1.
83 yuan, maintain “Buy” rating.
Risk warning: The demand for upstream real estate has increased significantly, and the recovery of accounts has fallen short of expectations.