Zhongshun Jierou (002511) 2019 First Quarterly Report Review: Good Performance and Continuous Optimization of Product Structure

Zhongshun Jierou (002511) 2019 First Quarterly Report Review: Good Performance and Continuous Optimization of Product Structure

The first quarter of 2019 report is eye-catching on April 18, 2019. Zhongshun Jierou released the first quarter of 2019 performance report.

The company achieved operating income of 15 in Q1 2019.

40,000 yuan, an increase of 25 in ten years.

8%; Net profit 1.

23 ppm, an increase of 25 in ten years.

2%; net profit after deduction 1

22 ppm, an increase of 33 in ten years.


The sales performance of the company is strong. While the revenue is growing rapidly, the sales expense is increasing by only 3% per year.

38%, reflecting the competitive advantage brought by high-quality products.

The company may launch several new products during the year, and this part of the promotion may lead to an increase in sales expenses in subsequent quarters.

Corporate management expenses increase by 18 per year.

71%, mainly due to equity incentive expenses and supplementary depreciation in March.

The company expects to add about 61 million new distribution incentive fees this year, which will be amortized gradually within one year.

The income structure has been continuously optimized, and the e-commerce channel has continued to make efforts. Against the background of the overall product price not being raised, mid-to-high-end products such as facials, lotions and natural woods have increased by about 40% each time.

The revenue of the company’s e-commerce channel exceeded the growth rate by more than 50%, and the gross profit margin of products sold on the e-commerce channel was relatively high.

The ratio of e-commerce channels to the company’s revenue is expected to continue to increase in the future.

The continuous development of e-commerce channels will further promote the optimization of the company’s product structure.

The cost pressure has been verified. In the second quarter, the available raw materials of the company are usually purchased 3-6 months in advance. Therefore, the average cost of raw materials in the first quarter of 2019 decreased month-on-month.

We believe that the company’s raw material costs in the second quarter are more likely than the first quarter, and the earnings elasticity will continue to be reflected in performance growth.

Investment recommendation: Maintain Buy rating and continue to be optimistic about the industry and company performance. We forecast the company’s revenue for 2019-2021 to be 69.

13, 83.

20 and 98.

76 ppm, with a one-year growth rate of 21 respectively.

7%, 20.

4% and 18.

7%; net profit is 5.

17, 6.

25 and 7.

5 billion, the previous growth rate was 27.

0%, 20.

8% and 20.


The company closed at 10 on April 18.

36 yuan corresponding to 2019-2021 forecast PE is 25.

8X, 21.

3X and 17.

8 times. We continue to be optimistic about the investment 杭州桑拿 opportunities brought about by the gradual development of the tissue industry and the company’s self-upgrade. We maintain a “buy” rating on the company and maintain a reasonable interval for updating the long-term annual report reviews to 10.


60 dollars.

Risk warning: The company’s capacity expansion and product sales are worse than expected; the growth of wood pulp prices and the RMB exchange rate will seriously affect the company’s profitability.