Xinbao shares (002705): Mofei boosts domestic sales growth beyond expectations and significantly improves overall gross profit margin

Xinbao shares (002705): Mofei boosts domestic sales growth beyond expectations and significantly improves overall gross profit margin

Event: The company released the third quarter report of 2019, and achieved revenue 68 in the first three quarters.

27 trillion, +9 ten years ago.

19%, net profit attributable to mother 5.

19 trillion, +44 a year.

88%, net cash flow from operating activities10.

9.5 billion, previously +715.

98%; corresponding to Q3 realized income 27.

83 trillion, ten years +11.

84%, net profit attributable to mother 2.

780,000 yuan, +26 a year.

62%, net cash flow from operating activities5.

89 trillion, ten years +147.


Revenue maintained rapid growth and domestic independent brands performed well: The company’s Q3 revenue continued to grow at a higher rate of Q2, +11 per year.


Affected by exchange rate fluctuations, we expect the company’s export business to improve.

In terms of domestic sales, 深圳桑拿网 there are more flowers, and the main independent brand Mofei has performed well. According to the Tmall data we track, Q3 Mofei and Dongling juicer sales increased by +438 respectively.

77%, + 2991.

28%, and after entering the autumn and winter, the Mofei net red pot enters the peak sales season, with double 11 sales expected. The recently launched seasonal products Mofei and Dongling’s heaters are also expected to become a new generation of net red products.

At the same time, the company actively expands channels, and this year began to expand cooperation with Pinduoduo, mainly selling the Kaiqin brand, and the product line will gradually be enriched.

Taking into account the rapid growth of the third-quarter report income end and various products sold online, we expect the company’s Q3 domestic sales revenue growth 无锡桑拿网 rate to far exceed the performance of the interim report, more than 30%.

The company’s gross profit margin has increased significantly, and sales expenses continue to be spent: 19Q3 gross profit margin and net profit margin of 25.

64% and 10.

02%, +4 each year.

17, + 1.

18 points.

To improve, we expect that exchange rate fluctuations will increase the export gross profit margin to a certain extent. Instead, the company’s own brand will grow rapidly to improve its product structure, which will increase the domestic gross profit margin.

From the perspective of expenses, the sales, management, research and development, and financial expense ratios of 19Q3 were +1 each time.

48, +0.

47, +0.

32, -0.

11pct, of which the increase in sales expenses is mainly due to the company’s sales staff’s salary increase and continuous expenditure on advertising costs, to cultivate and promote its own brand. At present, the company’s domestic sales business has entered a stage of rapid development.

The decrease in financial expenses was mainly due to exchange gains, interest income increased from the same period last year and interest expenses decreased from the same period last year.

Operating cash flow has increased significantly, and advance receipts have increased significantly: from the balance sheet perspective, monetary funds + other current assets at the end of the 19Q3 period were 24.

8.5 billion yuan, up 2 from H1.

30,000 yuan; accounts receivable + notes 12.

62 ppm, an increase of 2 over H1.

20 trillion; advance receipts1.720,000 yuan, an increase of 0 over H1.

0.6 billion, +50 in ten years.

77%, mainly due to the increase in customer settlement methods this year.

In terms of turnover, the company’s 19Q1-Q3 inventory and accounts receivable turnover days +5 for decades.

56 days, -0.

16 days, business cycle increased by 5.

40 days, extended business cycle.

From the cash flow statement, 19Q3 net cash flow from operating activities5.

89 ppm, of which Q3 cash inflows of goods sold and services provided +17 per year.


Investment suggestion: The company’s external sales benefit from improved revenue, internal sales of independent brands have performed well, and subsequent new product launches bring greater benefits to the company; actively deploy automation to improve production efficiency and further improve profitability.

The company’s third quarter report exceeded our previous expectations, and we raised the net profit for the year 19-21 to 6.

6, 7.

6, 8.

900 million (previous value was 5.


9, 8.

0 million), the current sustainable corresponding 19-19 years dynamic assessment is 19.

4x, 16.

9x, 14.

5x, maintain “Buy” rating.

Risk warning: risks of fluctuations in raw material prices; new product promotion is less than expected.