Zhou Dasheng (002867) 2018 Annual Report Review: Outstanding speed of exhibition shops has significantly improved profitability

Zhou Dasheng (002867) 2018 Annual Report Review: Outstanding speed of exhibition shops has significantly improved profitability

Event: Zhou Dasheng achieved operating income of 48 in 2018.

70,000 yuan, an increase of 28 in ten years.

0%; realize net profit attributable to shareholders of listed companies.

10,000 yuan, an increase of 36 in ten years.

2%; gross profit margin was 34%, an increase of 1 over the same period last year.

7 averages; net margin is 16.

6%, an increase of 1 over the same period last year.

0 average; ROE is 20.

5%, an increase of 2 over the same period last 佛山桑拿网 year.

9 averages; EPS is 1.

7 yuan / share, an increase of 28 over the same period last year.

2%.

The speed of exhibiting stores is excellent, and the growth rate of single store revenue is increasing.In 2018, the company relied on its excellent supply chain integration capabilities and adopted an extension-type, scale-first channel construction strategy to establish a wide-ranging and deep “self-owned + franchise” chain network.The annual net increase of 651 stores, including a net increase of 625 franchise stores, a net increase of 26 self-operated stores, the company currently has 3375 stores, expansion capacity is excellent.

In terms of segmentation, the revenue growth rate of individual stores and franchised stores was 12 respectively.

1%, 11.

2%, the increase in the growth rate of single store revenue was mainly due to the rapid development of included products and the further improvement of product structure.

The company’s gross profit margin is 34%. Those with excellent profitability benefit from the increase in the proportion of alternative jewelry with a higher gross profit margin and the rapid expansion of the company’s stores, which significantly improves the company’s profitability.

In terms of segmentation, the gross profit margins of franchise business and self-operated offline business increased respectively over the same period last year.

4, 0.

1 level, the company’s overall gross profit rate is 34%, and its profitability is excellent.

The proportion of dividends is high, and the performance target is enhanced. The market expects that the company will increase cash dividends in 20183.

US $ 1.7 billion, with a dividend rate and a dividend rate of 39% and 2%, respectively. At the same time, it plans to transfer 5 shares for every 10 shares to give back to shareholders.

In addition, the company’s financial budget target for 2019 is 15% -25% revenue growth; net profit growth is 15% -25%, and the performance goal is to announce that it is conducive to enhancing market expectations.

We maintain the company’s “overweight” rating. We expect the company’s operating income for 2019-2021 to be 59.

01, 67.

37, 76.

55 ppm; net profit attributable to shareholders of the parent company was 10 respectively.

02, 12.

07, 14.

3.8 billion; EPS is 2.

06, 2.

48, 2.

95 yuan / share; corresponding PE is 16.

75, 13.

90, 11.

67 times.

Considering that the company’s product structure fits the consumption trend, it is expected to benefit from the consumption upgrade in low-tier cities and lead the jewellery industry. We are optimistic that the company maintains an 武汉夜生活网 “overweight” rating in the development of the jewelry industry.

Risk reminders: The development of new stores is not up to expectations; the overall economic outlook is expected to cause the industry to recover less than expected; important shareholders reduce their risk.