Yuanzu shares (603886): Core business profitability improves card sales situation is good

Yuanzu shares (603886): Core business profitability improves card sales situation is good

Event: The company releases an interim report.

In 2019H1, the company realized operating income8.

3.3 billion, an increase of 15.

24%; net profit attributable to mother was 3554.

430,000 yuan, an increase of 36.


Looking at 19Q2 alone, the corresponding revenue is 4.

92 trillion, with an increase of 10.

03%; net profit attributable to mother is 4,236.

830,000 yuan, down 20.

96% (after gradual adjustment).

Opinion: The income has grown steadily, and the union welfare has continued to improve.

1) Sub-categories: 19Q2 cakes / Chinese and Western cakes (including rice dumplings) / fruit growth rates are 5 respectively.

63% / 11.

76% / 14.

twenty three%.

According to channel research, the slight increase in cake growth is mainly due to a certain transition period for consumers after the price increase started on April 1. It is expected that the growth rate will gradually recover in the second half of the year; the income of gardenia is expected to exceed 5-10%;The growth of other pastry and fruit businesses is good, which is expected to be mainly due to the expansion of new stores and the same store growth contribution.

2) Stores: It is expected that by the end of the reporting period, the number of the company’s stores will exceed 642, an increase of more than 11 at the end of 18 years ago, and a net increase of 30+ stores in 19 years, which is more in line with expectations.

In addition, at the end of the reporting period, the company’s advance receipt of card coupons was affiliated to Dada.

17 trillion, an increase of 0 at the end of the earlier 18 years.

8.6 billion (+16 year-on-year.

1%), the non-union welfare main sales stage company card coupon sales momentum is still good, or benefit from the continuous improvement of employee welfare standards of enterprises in various provinces, and make the company’s future revenue growth momentum.

Gross profit margin continued to improve, and expenses 杭州夜网论坛 improved during the period.

The gross profit margin of the company in 2019H1 is 64.

28%, an increase of 2 per year.

46pct; 19Q2 gross margin is 63.

59% (+1.

49pct). The continuous improvement in gross profit margin is expected to be mainly due to price increases and optimization of product structure, sleep card carryover, and positive contributions.

The sales / management + expense R & D rates of the company in 2019H1 were 49.

64% / 7.

01%, a decrease of 0 per year.

67pct / 0.

58pct, the three fees are properly controlled as a whole, and the decline in the sales expense ratio is mainly due to the fact that the absolute amount of store rental fees has remained basically stable, and rental fees / revenues have decreased compared to the same period.

12pct, mainly due to the rent reduction plan implemented by the 19Q1 company, coupled with the newly opened stores are expected to be more cost-effective; labor costs (yoy + 16).

1%), advertising expenses (+20 compared to the same period last year).

02%) The increase is higher than the increase in revenue, which is expected to be related to the talent reserve of the company’s store development stage.

Thanks to the hierarchical management, the company’s management expense ratio continued to be optimized.

Overall, the company’s core business profitability improved.Q2 sleep card release 174.

54 million net profit, the overall contribution to performance is less than Q1.

In addition, due to non-current asset disposal losses (disposal of fixed assets at the store and loss of original pos software scrapping) and external donation expenses, the company’s 19H1 operating external expenses increased, affecting the net interest rate level in the second quarter of the year.

Profit forecast: EPS is expected to be 1 in 2019-2021.

40, 1.

73, 1.

99 yuan, corresponding to PE is 16 times, 13 times, 11 times, maintaining the “buy” level.

Risk reminders: store development is less than expected, moon cake sales dependency index risk and performance seasonal fluctuation risk, food safety issues.