Supor (002032) 2019 Third Quarterly Report Review: Company’s Steady Operating Performance and Profitability Slightly Improved

Supor (002032) 2019 Third Quarterly Report Review: Company’s Steady Operating Performance and Profitability Slightly Improved
Matters: The company released the 2019 third quarter report, and the company achieved operating income of 148 in 19Q1-Q3.96 ppm, an increase of 10 years.22%, net profit attributable to mother 12.48 ppm, an increase of 13 in ten years.04%.In a single quarter, Q3 company achieved operating income of 50.61 ppm, an increase of 11 years.36%, net profit attributable to mother 4.100,000 yuan, an increase of 12 in ten years.41%, in line with our Air 无锡桑拿网 Force expectations. Comment: The company’s operating performance is stable and its growth rate is in line with expectations.The company achieved revenue of 148 in Q1-Q3 2019.96 ppm, an increase of 10 years.22% in the third quarter achieved revenue of 50.61 ppm, an increase of 11 years.36%, the company’s operating performance is exceptionally stable.According to Aowei Cloud Network data, the growth rate of retail sales of the small household appliance industry in the Q3 domestic market fluctuated slightly, and market demand was slightly weak.As the leader of the domestic cooker industry, the company still has a leading position in the industry. Overcoming the ever-increasing product matrix and perfect channel layout, Q3 has achieved steady growth and demonstrated a clear industry.The company’s traditional categories, such as rice 杭州桑拿网 cookers, have maintained a leading edge, and new businesses such as kitchen appliances, kitchen tools and environmental household appliances have achieved rapid development.In the domestic market, benefiting from consumption upgrades and the company’s increasingly diversified product categories, Q3 is expected to achieve nearly 10% revenue growth; in the external market, benefiting from the continued transfer of SEB orders, Q3 is expected to maintain stable growth of more than 10%. The effect of expense control was obvious, and profitability was slightly improved.19Q1-Q3 company maximized profits16.1.4 billion, ten years +16.91%, net profit attributable to mother 12.48 ppm, +13 a year.04%.In a single quarter, the company achieved a gross profit margin of 30 in 19Q3.48%, ten years +0.40pct, or benefit from the decline in raw material prices and exchange rate depreciation.In terms of expenses, the cost control effect of the company was prominent in 19Q3, and the expense ratios for the four periods totaled.39% every year -0.55 points.In terms of split expenses, Q3’s sales expense ratio, management expense ratio, financial expense ratio and R & D expense ratio are 15 respectively.65%, 1.69%, -0.48%, 2.54%, +0 each year.06pct, -0.14pct, -0.42pct, -0.06pct, in which financial expenses decreased significantly, mainly due to the increase in bank deposit interest income.Under the comprehensive influence, Q3 realized the net interest rate attributable to mothers8.11%, ten years +0.08 points.The company’s cash flow from operating activities was excellent, and Q3 achieved net cash flow from operating activities.16 trillion, +124 a year.72%. The industry leader is still at the first level, and long-term stable development is expected.The company focuses on cooking utensils and small kitchen appliances, and its industry leading position remains.In addition to the company SUOR, the SEB has successively dated high-end brands such as Krups, Lagostina and WMF, perfecting the brand matrix and achieving comprehensive coverage of different consumer groups.While digging deep into cooking utensils and small appliances, the company actively expands new categories such as large kitchen appliances and environmental household appliances that are highly relevant to existing dominant categories, and continues to upgrade its product structure.On the channel, the third-tier and fourth-tier sales networks have been improved offline, the number of outlets in low-tier markets has continued to increase, and the online e-commerce professional operations have continued to improve.With the gradual deepening of the synergy with the SEB Group in the future, the company’s long-term steady development is expected. Investment suggestion: We maintain the company’s EPS forecast for 19/20/21 to be 2 respectively.43/2.87/3.30 yuan, corresponding PE is 31/27/23 times.As the leader of the domestic cookware industry, Supor has been cultivating cookware for more than 20 years. The new layout of high-end cookware has broad development space.At the same time, the company’s strength in research and development and the channel’s competitive advantages, entered the field of household electrical appliances and other fields, the expansion of categories has become an important growth point of Supor’s medium and long-term development.Considering the final revenue conversion, we raised the target price to 80 yuan (original target price: 73 yuan), corresponding to 28 times PE in 20 years. As a leader in small appliances, the company has a stable business development, high performance certainty, and maintains a “strong push” level. Risk warning: industry competition intensifies; raw material prices rise.