Vantage (002035): Industry demand awaits recovery and profitability improves

Vantage (002035): Industry demand awaits recovery and profitability improves

Income base pressure eased and inventory pressure reduced.

In terms of revenue, the company’s single quarter revenue has turned negative growth since 2018Q4, and the single quarter revenue growth rates of 18Q4 to 19Q3 were -12.

04% /-6.

54% /-8.

61% /-8.


Therefore, from the base point of view, 19Q4 began to ease the pressure on the income base.

Inventory pressures have also decreased.

According to the company’s record of investment activities on December 10, the existing company’s omni-channel average inventory was 3.

About 5 months, the secondary dealers have gradually eliminated the inventory.

In the future, the company will continue to promote inventory adjustment, optimize the age structure of the inventory, and adjust the reasonable ratio of new and old products.

We believe that the inventory level is gradually gradually recovering from the demand side of the post-cycle segment brought about by reasonable merger completion and delivery, and the company’s revenue side must be upwardly flexible.

Profitability of profit side is expected to continue to improve.

On the profit side, the company’s profitability continues to improve.

  This year, driven by the decline in original prices and the gradual correction of dividends, the industry as a whole has benefited from the cost side, and added that the company’s product structure optimization and management side continue to reduce costs and increase efficiency. Although the average price of products has declined, the company’s profitability is still realizedSteadily improved.

As of the first three quarters of 2019, the company achieved net profit attributable to mothers5.

17 ppm, an increase of 16 in ten years.

87%; net interest rate is 12.

1%, an annual increase of 2.

6 points.

We believe that the product price tends to be stable and the product structure is optimized. The internal cost reduction and efficiency improvement continue, and the company’s future net profit margin is also expected to continue to increase.

Channel reforms continue to advance and are expected to bring new growth points.

In terms of retail channels, the restructuring of the company’s dealer system is gradually integrated, advocating the adjustment of the wholesale relationship between first- and second-tier dealers to be retail-oriented, and the second-tier dealers transforming the distribution model of flagship store retailers to strengthen terminal sales.

At the same time, new retail channels are being developed. At present, new retail channels have been stationed in stores, following the development of new retail channels to cover the fourth and fifth-tier markets.

In terms of engineering channels, planning has also begun.

At present, the company’s sales ratio of engineering channels is still low, only 6%. This year, in the context of the continued weakness of the retail market and the rapid increase in engineering penetration, the company began to restructure and reform the engineering sector.Under the company’s guidance, the agent was developed into a local engineering contractor.

We believe that in the long run, as the industry’s overall channels are becoming more diversified, the expansion of new retail channels and the layout of the engineering end are expected to bring new growth points for the company.

Investment Advice.

Looking at the industry as a whole, the completion data from 19Q3 has the goal of improving month by month and increasing the growth rate. Considering that the demand for home appliances can be generated after the 都市夜网 completion of house delivery, we believe that the recovery of demand in subsequent industries is expected to benefit from the gradual release of land delivery, which will leadThe overall fundamentals and estimated repairs of the kitchen appliance sector are expected after the real estate.

From the perspective of the company itself, we believe that the company’s overall profitability can be improved and the logic can continue to be realized, driven by the high-end brand and the trend of reducing costs and increasing efficiency.

We expect the company’s EPS in 19-21 to be 0.

91 yuan, 1.

04 yuan and 1.

18 yuan, an increase of 17 in ten years.

2%, 14.

6% and 13.

1%, giving the company 15-18xPE for 19 years, corresponding to a reasonable value range of 13.

65-16.38 yuan, maintaining the “primary market” rating.

淡水桑拿网 risk warning.

Terminal demand recovered less than expected, channel inventory risk.