Xiaoxiong Electric (002959) 2019 Performance Express Commentary: Multi-category Strategy Implementation Achieved Effective Growth Performance

Xiaoxiong Electric (002959) 2019 Performance Express Commentary: Multi-category Strategy Implementation Achieved Effective Growth Performance

Matters: The company releases the 2019 annual performance report, and the company’s total operating income in 201926.

92 ppm, an increase of 31 in ten years.

92%, net profit attributable to mother 2.

600,000 yuan, an increase of 40 in ten years.

08%.

In a single quarter, Q4 company achieved total operating income9.

72 ppm, an increase of 34 in ten years.

38%, net profit attributable to mother 0.

920,000 yuan, an increase of 39 in ten years.

30%, the performance exceeded market expectations.

  Comment: The implementation of multi-category strategy has been effective, and revenue has maintained rapid growth.

In 2019, the company achieved a total operating income of 26.

USD 9.2 billion, an annual increase of 31.

92%; 19Q4 achieved operating income 9.

72 ppm, an increase of 34 in ten years.

38%, the company’s revenue continued the rapid growth in the previous period.

Compared with the traditional kitchen small electric appliances, the market for creative new small appliances has expanded and the product expansion rate has decreased, leaving more room for growth.

The company has been deeply cultivating new and innovative small appliances for many years, and has led the market segmentation in various market segments such as electric lunch boxes.

Since 2019, 1) Product side: implement a multi-category development strategy, gradually develop from non-necessary to just-needed, and actively research and develop new products on the market. In addition to continuously promoting new products such as health pots and humidifiers, the company’s new layoutVacuum cleaners, coffee machines, shoulder and neck massagers, and many other categories; 2) Channel: The company continues to develop and improve sales channels, integrate new models such as live broadcast to divert online, strengthen offline presence of stores and counters, and reach more consumers;3) Supply chain side: Continue to expand the development of production capacity space, plus intelligent manufacturing, and jointly help the company’s sustainable development.

  The performance exceeded expectations and profitability steadily improved.

The company will maximize profits in 20193.

26 ppm, an increase of 36 in ten years.

71%, net profit attributable to mother 2.

600,000 yuan, an increase of 40 in ten years.

08%; 19Q4 company’s total profit 1.

100,000 yuan, an increase of 48 in ten years.

61%, net profit attributable to mother 0.

920,000 yuan, an increase of 39 in ten years.

30%, the performance exceeded market expectations.

The company’s profitability has steadily increased, and its net profit attributable to its mother in 19 years was 9.
.

65% (decade +0.

56pct), Q4 returns to the mother net interest rate 9.
.

49% (decade +0.

34pct), or benefited primarily from the initial recognition of multi-category strategy implementation, the company’s product structure continued to upgrade and overall internal efficiency improved.

  The epidemic spurred the sale of healthy small electricity, and the fund-raising projects helped the long-term development.

In the short term, the Xinguan epidemic is subject to certain restrictions on people’s travel. Paying more attention to cooking at 天津夜网 home and paying more attention to healthy life will help to stimulate the demand for kitchen cooking appliances and various health appliances.
The company is the main target of online channels (90% of online online in 2018.

41%) of creative small household appliances, rich product categories, one-person products such as electric lunch boxes, sandwich machines, etc. that meet current needs, potentially benefiting in priority.
In the long run, the company’s funds are mainly used for the production of creative small household appliances, research and development, and informatization. The completion of the project will help the company to expand its production capacity, strengthen the company’s technology reserves and research and development capabilities, enhance the company’s overall efficiency, and help the company’s long-term development.

  Investment suggestion: The future of creative new small appliances is bright, and the company has been leading the market in many market segments for many years.

The short-term epidemic promotes the release of demand for cooking products, health products, and one-person products. The company as a major emerging small household appliance leader in online sales has priority to benefit; the long-term company implements a multi-category strategy to broaden the growth boundary and increase the offline distribution channel.The construction of the fundraising project is completed, and its future development is worth looking forward to.

In view of the gradual effectiveness of the long-term layout, we raise the company’s EPS to 2 in 19/20/21.

17/2.

74/3.

48 yuan (original value: 2.

07/2.

65/3.

38 yuan), corresponding PE is 32/25/20 times.

Taking into account the rapid growth of the new small home appliance Internet dividend and the premium of the new shares, referring to the 20-year PEG of comparable small home appliances, we raised our target price to 82 yuan (original target price: 79 yuan), corresponding to 30 times PE in 2020, and raised to “strong”Push” level.

  Risk warning: industry competition intensifies; new product development is less than expected.