Supor (002032) Interim Review: Performance maintained good growth in line with Express

Supor (002032) Interim Review: Performance maintained good growth in line with Express
Core point of view: Revenue and profit maintain better growth and growth, which is consistent with the performance report. The company disclosed its 2019 Interim Report and achieved operating income of 98H1 in 2019.400 million (+11.1%), net profit attributable to mother 8.400 million (+13 year-on-year.4%), gross margin of 30.8% (YoY-0.3pct), net interest rate 8.5% (+0 year-on-year.2pct).  Operating income for the second quarter 43.600 million (+10 compared to the same period last year).1%), net profit attributable to mother 3.200 million (+12 year-on-year.6%), gross margin of 30.1% (YoY-0.9pct), net interest rate 7.4% (+0 year-on-year.2pct).The interim report is in line with the performance report.  Gross profit margin dropped by 北京桑拿洗浴保健 0.3pct, in which the gross profit margin of domestic sales fell by 0.6pct, every increase in export gross profit margin is 0.7pct, we believe that it is mainly due to the structural adjustment of internal sales revenue. Specifically, the online sales of the gross margin reset and offline third- and fourth-tier market revenues have grown faster than the second-tier and second-tier markets.But the selling expense ratio dropped by zero.6pct, overall profitability remains stable.A bonus of 2 will be distributed for every 10 shares.58 yuan. Domestic consumer demand is weakening, and domestic sales revenue is growing faster than short-term products and cooking utensils.7 ppm, a ten-year increase of 8.5%; income from electrical products 67.10,000 yuan, an increase of 12 in ten years.5%.  By region, domestic sales income was 76.5 ppm, an increase of 11 years.2%, the growth rate of domestic sales growth, preliminary: 1) domestic consumer demand weakened; 2) the base in the same period of 2018 is relatively high; export revenue 21.800 million, an increase of 10 in ten years.8%, thanks to the continuous transfer of SEB business orders. The high level of the industry is stable, and Decoration Capital set up a water heater company, which is expected to bring new growth momentum to the company. In the short term, domestic consumer demand has weakened. Under the high base in 2018, Supor’s revenue growth has accelerated and improved.The market still has a solid industry level. According to GFK, 2019H1 Supor’s market share in the six major categories of cookware will increase by 2.1pct, stay absolutely ahead.According to Zhong Yikang and Aowei, the nine major categories of Supor kitchen appliances are offline, and the online market share has increased by 0.5pct, 1.1pct, the market is further consolidated.With the increasing market concentration of the industry, market share continues to increase.At the same time, the company announced today that it intends to establish a Zhejiang Supor Water Heater Company in a joint venture with the Supor Group.  In the long run, the small home appliance industry in developing countries has entered a new stage of consumption upgrade. As a leader in the small home appliance industry, Supor has obvious competitive advantages and will benefit from the long-term increase in volume and price brought by consumption upgrade.At the same time, in the future, the company will continue to contribute to the company’s growth momentum in terms of category expansion and high-end brand layout. Profit forecast We expect that the concentration of small kitchen appliances industry will continue to increase, while overseas markets are recovering, and overseas OEM orders are increasing.Based on the above assumptions, we expect the company’s net profit attributable to the parent to be 19 in 2019-21.3, 22.2, 25.300 million, an increase of 15 each year.4%, 15.0%, 14.0%. Considering that the company is the leader of small household appliance companies, it has benefited most from consumption upgrades. In the past six years, revenue and profits have maintained steady growth, and the performance stability is higher than other small household appliance companies. In the future, the performance is expected to continue to grow steadily and maintain a reasonable level.Worth 78.The judgment of RMB 4 per share remains unchanged, corresponding to 33xPE in 2019, maintaining the “Buy” rating. Risk warning: rising raw material prices; lower-than-expected consumption upgrades; weak overseas markets; high-end business development not smooth; multi-category business development not smooth.