Xilinmen (603008): Improved profitability in 3Q19 Follow-up focus on the effect of business restructuring adjustment

3Q19 results exceeded market expectations. 3Q19 results released by the company: Revenue 33.

51 ppm, an increase of 13 in ten years.

1%; net profit attributable to mother 2.

870,000 yuan, an increase of 80 in ten years.

3%, driven by factors such as improved gross profit margin and increased cost control, performance exceeded market expectations.

By quarter, Q1-Q3 revenue increased (decreased) -5.

6% / 25.

9% / 16.

9%, net profit attributable to mothers increased (decreased) -56% / 86.

6% / 267.


Development trends 1. 1-3Q19 The company’s revenue growth rate remained stable.

The company’s revenue in the first three quarters of 19 increased by 13.

1%, in terms of business: 1) We expect the main home furnishing industry to grow steadily. Among them, the proportion of independent brand business will further increase, hotel business customers will expand rapidly, and OEM business will be affected by the anti-dumping impact of US mattresses.2) We expect more pressure on the revenue of the film and television business. At least one episode of “Red Shark Attack” will be broadcast in the second half of the year, which is expected to usher in improvement.

2. Profitability remains upward.

19 1-3Q company’s gross profit margin increased by 3.

7ppt, thanks to: 1) the average price of main raw materials TDI / polyether decreased by 56% / 17%; 2) the conversion rate was reduced; 3) the proportion of independent brand products increased.

In terms of expense ratio, the expense ratio of Q3 company decreased by 2.

4ppt, of which the sales expense ratio decreased by 0.

9ppt, management + R & D expense ratio decreased by 0.

2ppt, financial expense ratio decreased by 1.

3ppt, the company’s single quarterly expense management and control significantly increased, improving the efficiency of expense expenditure, under the overall impact of the company’s Q3 net interest rate increased by 7ppt, 1-3Q net interest rate increased by 3.


3. The major shareholders can pay debts to complete the share swap, and follow-up attention to the effect of operation restructuring adjustment.

The company’s controlling shareholder, Huayi Investment and Democracy, issued a total of four indebted bonds, all of which are held by shareholders and their concerted parties. According to the recent announcement, the four indebted bonds have completed the share swap.Acting in concert together holds the company 44.

92% of the shares, the company held 31 after the share swap.

87% of the shares, the actual controller has not changed, the company’s controlling shareholder storm has temporarily come to an end.

In 2019, the company will optimize offline stores on the channel side, develop distribution models and community stores; streamline SKUs on the product side, and develop regional dedicated contributions; increase the accuracy of expense expenditure on the marketing side, and focus on the results of subsequent company operations.

Earnings forecast and elasticity of expected contribution of falling raw material prices to earnings, we raise our 2019/2020 earnings forecast and forecast13.

1% / 9.

3% to 0.


88 yuan / share.

The current sustainable response is 16/2019/2020.

8 times / 14.

4x price-earnings ratio.

We maintain our Outperform rating. We raise our target price by 8 due to the upward revision of earnings forecasts.

8% to 14.80 yuan, corresponding 成都桑拿网 to 19.

6 times 2019 P / E ratio and 16.

8 times 2020 price-earnings ratio, 16 compared with the same period last year.

7% upside.

Risky real estate grew faster than expected and raw material prices rose.