Gold Medal Kitchen Cabinet (603180): Performance Growth Meets Expectations Category Extension + Channel Expansion Helps Future Growth

Gold Medal Kitchen Cabinet (603180): Performance Growth Meets Expectations Category 杭州评茶阁 Extension + Channel Expansion Helps Future Growth
Event company released the 2019 semi-annual performance report: the company achieved operating income in the first half of 20197.85 ppm, an increase of 22 in ten years.14%, net profit attributable to mother 0.70,000 yuan, a year-on-year increase of 14%, single quarter revenue in the second quarter of 20195.07 million yuan, an increase of 33 in ten years.07%, net profit attributable to mother 0.51 ppm, an 18-year increase.6%.  Opinion: The company’s performance has grown steadily, the retail business is basically stable, the bulk business, and the orange home wardrobe business have grown rapidly.The company’s overseas business, orange home doors, smart homes, and assembly business are still in the expansion stage, with upfront expenses and changes in order structure, which will 都市夜网 affect profit growth.  Gold + Orange brand dual brand operation, wardrobe business grows rapidly.The company’s cabinet retail growth is steady, and the wardrobe business is growing rapidly. Depending on the brand of gold kitchen cabinets and customer resources, Jujia’s wardrobe gradually deepens the collaboration between the kitchen and clothing businesses from R & D, marketing, logistics, and back-office management.  In the first half of 2018, the company established the Orange Home Door Division, which is currently accelerating the improvement of product series and channel expansion. Wooden doors are expected to contribute to the increase in performance.  Retail + bulk + export, channel layout blossoms.1) The retail layout continues to advance. As of the end of 2018, the company has a total of 1,759 specialized stores, including 1,413 gold medal cabinet stores (including under construction), 337 orange wardrobe stores (including under construction), and orange door wooden stores.9 (including under construction), with a total of 1759 stores.2) The volume of bulk business continues to increase, and 31 long-term strategic partnership agreements with the top 50 real estate companies have been implemented to enhance the agency’s operational capabilities and competitiveness.3) The export business is expected to become the company’s new strategic growth point and continue to accelerate the channel layout.  We expect the company’s EPS to be 3 in 2019-2020.69, 4.28 yuan, corresponding to 14 for 2019-2020 PE.91, 12.87 times, considering the company’s gold + orange brand dual brand operation, closet business, bulk business volume, maintain the “Buy” rating.  Risk warning: The real estate boom is lower than expected, and business promotion is lower than expected.