Sofia (002572) Company Review: Q2 Q2 Chain Store Up Speeds Up
Event: Sofia released its 2019 Interim Report. In the first half of 2019, the company achieved operating income of 31.42 ppm, an increase of 5 in ten years.17%; net profit attributable to mother 3.91 ppm, a five-year increase of 5.96%; of which the company achieved operating income of 19 in the second quarter.570,000 yuan, an increase of 12 in ten years.18%; net profit attributable to mother 2.84 ppm, a six-year increase of 6.84%. The revenue growth rate was up month-on-month, and the big home strategy was steadily advancing.As of mid-2019, the company has a total of 3629 stores (+71), of which 2470 (-40) are Sofia stores; 837 (+15) are independent Smi cabinet stores, and 176 are large-scale stores (+78), the overall goal for 2019 is to open 150 new home furnishing stores, and the big home furnishing strategy is advancing steadily. (1) Sofia custom furniture: The growth rate in the second quarter has obviously improved.Sofia custom furniture (including OEM furniture and home furnishings) achieved revenue of 27 in the first half.30,000 yuan, an annual increase of 3.6%, the second quarter achieved revenue of 16.900 million, an increase of 11 in ten years.62%.Among them, ① the first half revenue of the wardrobe business was 25.500 million (+2.5%), revenue from distribution channels23.400 million (+2.2%, accounting for 85.59%), direct sales channel income 0.800 million (-9.4%, accounting for 3.09%), revenue from bulk business channels was 30,000 yuan (+22.5%, accounting for 10.84%).The growth rate of Q2 improved significantly from the first quarter.② Revenue of furniture and household products in the first half of the year 1.80,000 yuan (+21.13%).Sofia has more than 22 customers.70,000, an annual increase of 4.12%, the customer unit price of 10,926 yuan / single (factory caliber, excluding Smy cabinets and wooden doors), an annual increase of 5.7%.As of mid-2019, there are more than 1,400 distributors of “Sophia” whole-house custom products, about 2646 (+46) specialty stores, and about 166 (-125) 20m-60m supermarket stores.Provincial capitals / prefectures / fourth and fifth tier cities have 17% / 29% / 53% stores; 35% / 33% / 32% of revenue is contributed. (2) Smy Cabinet: Q2 achieved positive profit in a single quarter.In the first half of the year, the revenue of Simi Cabinet was 3.10,000 yuan, an increase of 12 in ten years.35%, Q2 achieved revenue 2.40,000 yuan, an increase 深圳SPA会所 of 12 in ten years.01%, performance rose steadily. There are 809 (+87) distributors of Smy Kitchen Cabinets, and 837 (+15) independent Smi stores. The net profit of Smi Cabinet in the first half of the year was -1224.230,000 yuan, a year of loss reduction of 42.91%, Q2 single quarter achieved positive profit. (3) Wooden door business: integrated sales drive revenue growth.Revenue from wooden door business in the first half of the year was zero.80,000 yuan, an increase of 34 in ten years.2%.Q2 achieved zero revenue.52 ppm, an increase of 33 in ten years.13%.The company has a total of 149 Sofia independent stores (+21), more than 500 dealers, 150 Huahe Mumen stores (-10), and 139 dealers.In the first half of the year, the wooden door business realized a net profit of -20.85 million yuan, a 22-year reduction in losses.At 10%, the revenue of wooden doors increased rapidly and gradually realized integrated sales. The price adjustment affects the overall gross profit margin, and the scale effect of the wooden door business increases.The gross profit margin of the company in 2019H1 is 36.65% (-1.02 points), net interest rate 12.38% (+0.38 points.), 19Q2 gross profit margin 38.02% (-1.74 points.), Net interest rate 14.98% (-0.66 points.).In the first half of the year, the gross profit margin of the wardrobe was 39.95% (-1.27 points.), The gross profit margin of the cabinet is 27.57% (+2.25 points.), Furniture home furnishings gross margin is 14.28% (-1.8 points.), The wooden door gross margin is 10.29% (+5.85 points.).(1) The wardrobe product 18Q2 began to reduce the ex-factory price, which led to an improvement in the extension of 19H1 per square meter earlier, and the slender low overall gross margin.The impact of price adjustment factors from the third quarter is expected to dissipate, and (2) the sales of wooden door business will increase to the cumulative upward production capacity, and the business gross margin will increase.In terms of period expenses, 2019H1 annual sales rate is 10.99% (+0.84 points.), Mainly due to the substantial increase in labor costs, the management expense ratio of 10.98% (-0.73 points.), Financial expenses 0.44% (+0.22 points.), Mainly due to the increase in bank borrowings. Focusing on the “custom iron triangle”, we will promote large home furnishings to achieve product resonance.1) Speed up the opening of large home stores.The company has encouraged dealers to open Qianping stores since 2017 to increase order conversion rates and customer unit prices. The long-term goal is to have at least one large store in each city to achieve a real big home.The opening of large home stores accelerated in the first half of 2019 and will continue to increase in the second half of the year. It is expected that 248 large home stores will be opened by the end of the year, steadily advancing the big home strategy. 2) Broaden the moat based on products.Focusing on customer experience, personalized design, professional and efficient Audio-Technica triangle, the company’s products extend to multi-category products such as jewelry, flooring, and home products, and achieve a unified overall style.At present, the proportion of Kangchun Board (with no formaldehyde added board) customers has increased to more than 20%, and it is expected that it will continue to grow rapidly. The company will actively eliminate and optimize dealers, speed up the introduction of new products, realize omni-channel marketing, and continue to implement the big home strategy. Investment suggestion: We expect the company to realize income 83 in 19-21.100 million, 93.400 million, 102.800 million, an increase of 13 in ten years.6%, 12.4%, 10.1%; net profit attributable to mother is 10.8 ppm, 12 ppm and 13.2 ‰, an increase of 12 in ten years.5%, 11.6%, 9.7%; EPS are 1.17 yuan, 1.3 yuan and 1.43 yuan, maintaining the “overweight” level. Risk reminder: downside risks to the real estate boom, increased competition in the industry.
Sofia (002572) Company Review: Q2 Q2 Chain Store Up Speeds Up