Depth-Company-Europa Home Furnishing (603833): The performance exceeded expectations and showed the leading style

Depth * Company * Europa Home (603833): The performance exceeded expectations and showed the leading style

The company released the 2019 first quarter report: the report merged, and the company achieved revenue of 22.

0 million yuan, an increase of 15 in ten years.

6%, net profit attributable to mothers was 92.05 million yuan, a year-on-year increase of 25.

1%, non-net profit attributable to the mother is 75.67 million yuan, an annual increase of 21.


Key points of support level The engineering business accelerated its volume and the promotion effect appeared.

Based on the high base of 18Q1, the company’s 19Q1 revenue increased by 15.

At 6%, net profit attributable to mothers grows by 25 per year.

1%, 18Q4 net profit growth (4.

5%) improved significantly, performance exceeded expectations.

We think this is mainly due to the accelerated volume of engineering business, and 3.

15 promotional efforts increased compared with previous years.

The account receivable of the company in 1Q1 was 4.

2ppm, an increase of 50 at the end of the previous 18 years.

9%, an increase of 196 over the previous quarter.

0%, showing that the company’s engineering business volume accelerated.

In addition, 3.

Among the 15 major promotions, the company increased the compensation of dealers, and through the strong execution of the dealer team in place, launched attractive promotions such as buying cabinets and tableware and wardrobes and gold mattresses to stimulate terminal sales., Directly benefit revenue growth.

Strong channels help comprehensive business expansion.

The company has a rich matrix of categories and brands, strong channel management and control, and high-quality dealer teams. At a time when market demand is slightly weaker and competition is intensifying, it is transformed into combat power, which is helpful for multi-directional business development.

In 2018, the company added 800 dealership stores to 6,708 (YoY + 13.

5%), the bulk business increased by 47 in ten years.

0%, the large home furnishing business has settled in 22 cities, and the performance of orders exceeded 3.

500 million US dollars, e-commerce drainage sales accounted for 20%, Gome stores, community store layout achieved initial results, and achieved omni-channel business expansion.

Earnings have risen steadily, and performance has exceeded expectations.

The number of reports benefited from the increase in production efficiency and automation, and the company’s gross profit margin increased by 0.

31 points to 34.

22%, reducing costs and increasing efficiency, increasing scale effects, reducing revenue, increasing indexing expenses and litigation costs increased sales / management / R & D / financial expense ratio by -0.

3pct / 0.

0 points / -0.

1pct / 0.

4pct, keeping the rate of expenses during the period unchanged at 29.

0%, the final net interest rate is increased by 0.

32pct to 4.


It is estimated that the company’s strong brand strength, excellent management capabilities, and the most complete industrial chain layout can help continuously expand market share and achieve steady growth under all categories, 苏州夜网论坛 multiple brands, and multiple channels. We estimate the company’s revenue for 2019-2021 to be 4.


99/5.75 yuan, a short-term increase of 15.

4% / 15.

7% / 15.

2%, currently corresponding to 2019 PE27X, maintain BUY rating.

Major risks facing rating The real estate expansion has continued to tighten; competition in the industry has intensified; the development of Opal and the large home furnishing business has been slow.