Yuanzu Shares (603886) Company Review: Stores Open Steadily, Single Stores Grow Faster
Event: The company released its 2019 interim report, with revenue of 19H1 company 8.
33 trillion, +15 for ten years.
24%, net profit attributable to mother is 3554.
40,000 yuan, +36 a year.
13%, deducting non-profit 2614.
80,000 yuan, + 152% for the whole year; of which 19Q2 company revenue was 4.
9.2 billion, +10 in ten years.
03%, net profit attributable to mother is 42.37 million yuan, -21% for one year, non-profit deduction of 41.49 million yuan, length -5.
Revenue: Revenue has grown steadily, advance receipts have steadily increased, and the number of stores and single-store revenue have increased by single digits.
1) Operating income increased 11.
7%, sleep card confirmed contribution income growth4.
19H1 company revenue 8.
33 trillion, +15 for ten years.
24%, of which the sleep card contributed 32.01 million yuan, after excluding revenue of 8 trillion, sometimes +11.
7%, in line with expectations.
19H1 advance payment 6.
24 ‰, an increase of 72.57 million compared with the end of 2018, of which 37.76 million yuan increased in 19Q1, 35.69 million yuan increased in 19Q2, quite stable.
2) In terms of products, 19H1 cakes, Chinese and Western pastries, fruit gift boxes, and other income growth rates were 8 respectively.
5%, 14%, 15%, 5.
3) 642 stores in 19H1, a growth rate of 5.
6%, single-store revenue growth of 6% (excluding sleep cards).
According to our grassroots survey, there were 608 stores in 18H1 companies, 631 at the end of 2018, and 642 stores in 19H1, at the time +5.
At the same time, there is a net increase of 11 stores from the beginning of the year. I expect a long-term net increase of 30-50 stores, and the number of stores will expand steadily.
18H1 company’s single-store revenue was 1.18 million yuan, and 19H1 single-store revenue was 1.25 million yuan, excluding sleep cards, which contributed to the same-store growth of 5.
8%, maintaining rapid growth.
The company’s central factory + store sales model expanded. Currently, direct-operated stores account for 88%, and revenue growth rate is 11.
6%, franchise store revenue accounted for 12%, a growth rate of 14.
4) In terms of regions, Yuanzu ‘s Jiangsu and Sichuan companies accounted for the largest proportion of revenue, with a growth rate of more than 20%; Yuanzu ‘s Hunan, Liaoning ‘s revenue grew faster.
The gross profit margin increased steadily, and the price increase bonus was delayed.
19H1 company gross margin 63.
3%, ten years +2.
8pct, mainly due to cake, small price increase driven by fruit + product structure upgrade driven.
19Q2 company’s gross profit margin increased by 1.
5pct, the increase was slightly lower than 19Q1, mainly due to the impact of sales structure.19H1 cakes, Chinese and Western pastries, fruit gift boxes, and other income accounted for 35%, 58%, 5%, and 2%, respectively, and their gross profit margins in 2018 were 87%, 43%, 38%, and 71%, respectively.
The cake price bonus has been postponed. The first is that after the high-margin cake price increase in April, it will affect 4-6 sales in the short term, and the revenue growth rate in 19Q2 is 8.
5%, slightly lower than the growth rate of dumplings, pastries and fruit gift boxes below the medium gross margin.
Second, part of the company’s business is pre-sale through card coupons, so some card coupons can be exchanged for cakes to enjoy the price before the price increase.
Looking ahead to 19H2, we think that the cake and fruit price increase bonus gradually show + the Mid-Autumn Festival moon cake structure is optimized, and the gross profit margin remains stable and slightly rises.
The sales expense ratio remained stable, the labor + advertising expense ratio increased slightly, and the rental expense ratio decreased.
19H1 sales expense ratio is 50%, ten years -0.
67pct, of which 19Q1 dropped by 4.
3pct, 19Q2 sales expense ratio is 43%, increasing by 0 every year.
19H1 management utilization rate is 6%, ten years -1.
3pct, of which 19Q1 dropped by 2.
15pct, 19Q2 2 down 1.
We split the sales expenses and found that the sales expenses labor and advertising expenses ratios have improved, but the rents and so on have decreased, and the overall stability.
The profit of 19H1 grew steadily, and the decrease of profit growth in 19Q2 was mainly due to the low base, non-operating expenses, tax increases, and non-recurring gains and losses. These factors were non-operating factors.
In 19H1, the company’s net profit attributable to mothers increased by 36.
13%, non-profit growth rate of 152%; multiple stable.
In 19Q2, the growth rate of net profit attributable to mothers was -21%, and the non-profit growth rate was -5.
3%, we analyze: 1) Net non-operating income and expenditure decreased by 8.39 million in 19H1, mainly due to an increase in public donations of 4.21 million yuan and the original POS software scrapped 3.63 million yuan.
2) The 19Q2 diabetes rate increased by 11.
3 points to 27.
3%. The first is that 18H1 supplementary subsidiaries do not have to pay taxes. In 19H1, some subsidiaries have turned losses into profits. Shanghai Yuanhong has to pay the balance. The second is the replacement of the original Guangzhou company. The overall tax has increased by 9.04 million yuan.
3) Non-recurring gains and losses decreased by 633 times.
Non-recurring profit and loss decreased by 6.34 million 深圳桑拿网 yuan from 19H1 to 2018H1, especially from 19Q2 to 18Q2.
Advance receipts increase year by year, and the sleep card confirmation is continued to be positive.
40% of the company’s revenue comes from card coupon sales, and its core competitiveness comes from the store’s assessment and incentive mechanism + years of operation to form a strong brand relationship. It has brand competitiveness in the union welfare market, festival gifts, and birthday banquet scenes.
With an age of more than four years, the stored-value card balance in advance receipts as of the end of 20185.
170,000 yuan, 4153 new after confirmation in 2019.
90,000 yuan, 3460 profit after tax deduction.
19H1 profit increased by 2,400.
440,000 yuan, 18H1 net profit increased by 505.
Profit forecast and investment recommendations: Considering the increase in the 19Q2 tax rate + the slight increase in the rate of advance receipts, we slightly adjusted the profit forecast. We expect the company’s revenue to be 22 in 2019-2021.
500 million US dollars, previously + 14%, 11%, 11%; Net profit is expected to be 3 in 2019-2021.
4. + 36%, 16%, and 14% per year, corresponding to PE of 15X, 13X, and 11X, respectively, underestimated, high dividends, prominent investment income, maintain “Buy” rating.
Risk warning: food safety risks, fierce competition in the baking industry, regional and store expansions are less than expected.