Juewei Food (603517) Interim Review: Performance Exceeds Expectation, Net Margin Continues to Rise

Juewei Food (603517) Interim Review: Performance Exceeds Expectation, Net Margin Continues to Rise
Event description Evening company released 2019 semi-annual report in the evening, and realized operating income24.90 ppm, an increase of 19 years.42%; Net profit attributable to shareholders of listed companies.96 ppm, an increase of 25 in ten years.81%. Basic income is 0.6907 yuan.Net cash flow from operating activities 6.840,000 yuan, an increase of 106 in ten years.17%. Event commentary performance exceeded expectations, the number of stores, single-store revenue accelerated.The report summarizes that the company continued to advance in the domestic market in accordance with the established strategy, and achieved operating income of 24 in 2019H1.900,000 yuan a year + 19.42%, net profit attributable to mother 3.96 trillion, +25 for ten years.81%, better fulfilling the established target, of which revenue in the second quarter alone13.36 trillion, ten years +19.2%, net profit attributable to mother 2.1.5 billion, +30 a year.8%, continuing the rapid growth trend in the first quarter, exceeding market expectations, mainly due to the increase in the number of stores and single store revenue: 1) A total of 10,598 stores were opened in 2019H1, and 683 stores were added at the end of last year (a total of 9,915 stores in 2018), The number of stores grows 12% per year; 2) single-store revenue in 2019H1 is about 24 million, the same store growth rate is about 6.6%.Therefore, in terms of stores, the company actively explores the domestic market, focusing on “increasing single-store revenue, opening more stores, and opening good stores”, continuously improving the construction of fourth-generation stores, and continuously promoting the upgrade of high-potential stores. Therefore, from the perspective of expectation, the company is expected to follow the speed expansion of 800-1200 new stores, the single store revenue is expected to achieve a growth rate of more than 5%, and the performance is expected to grow steadily. The scale effect is prominent, and the net interest rate continues to increase.The company’s 2019H1 net sales margin is 15.77%, an annual increase of 0.85 single, mainly due to the decline in the expense ratio during the period.Specifically, the gross profit margin for sales in 2019H1 was 34.23%, down by 1 every year.25 single, the main reason for the decline in gross profit margin is due to rising raw 淡水桑拿网 material prices.Company period expenses14.06%, a decline of 0 per year.49 units, of which sales cost is 8.20%, a decline of 0 every year.12 units; management expense ratio (including R & D) 5.32%, a decline of 0 every year.The 97 singles are mainly due to the increase in personnel caused by the company’s information management, the absolute amount of management costs slightly reduced, and the scale effect prominent. Deeply cultivate the main business of duck neck to create a gourmet ecosystem.The company takes “deeply cultivate the main business of duck necks and create a gourmet ecology” as its main indicator, and actively promotes the improvement of brand potential, corporate potential, online potential, store potential, and new business potential. At the same time, it integrates online and offline businesses to promote brand 武汉夜网论坛 upgrade projects.Optimize online functions to help brand potential increase. Among online businesses, cumulative member registrations in the first half of 2019 exceeded 50 million.In addition, the company has laid out the “cuisine ecosphere” through incubation of new projects, investment and mergers and acquisitions, and is committed to becoming an “accelerator for specialty foods and light dining.” Investment suggestion As a leader in the halogen product industry, the company has obvious advantages in supply chain management and brand channels. In the short term, it plans to expand at a rate of 800-1200 new stores each year in the future, and its performance will promote stable growth.In the medium and long term, the company’s new product categories are steadily advancing, and at the same time accelerating the creation of a gourmet ecosystem, it is expected to become a new growth point.It is estimated that the company’s net profit attributable to the parent in 2019-2021 will be 7.66 billion, 9.09 billion, 10.7.4 billion, with EPS of 1.87 yuan, 2.22 yuan, 2.At 62 yuan, the current sustainable corresponding PE for 2019-2021 is 21 times, 18 times, and 15 times, respectively, maintaining the “Buy” rating. There are risks Food safety risks, risks of raw material price fluctuations, management risks of franchise mode