Meike Household (600337): Revenue growth continues to improve and operating efficiency tends to improve

Meike Household (600337): Revenue growth continues to improve and operating efficiency tends to improve
Event: The company announced its March 2019 quarterly report and achieved revenue 42.10,000 yuan, an increase of 5.2%, net profit achieved 3.50,000 yuan, an increase of 5.1%, deduct non-profit 3.100 million, down 5 a year.6%. Comments: 1. The post-real estate cycle is weak and the company’s revenue growth has improved. The company’s operating income in the third quarter of 2019 increased by only 5 per year.2%, of which single-quarter growth of 1 in the third quarter.About 7%, we judge that the revenue growth is further extended from the 9% growth in the second quarter. In the end, the post-real estate cycle is still weak, and the customer flow in the second half of the year has clearly deviated.However, the company adjusted its business strategy and the gross profit margin reached 53 in the third quarter.1% level, a quarter-on-quarter increase of more than 1 unit. 2. With the slightly lower store openings, improved costs, and increased operating efficiency, the company ‘s net growth rate of the company ‘s stores has increased and improved. We expect that the number of Meikemeijia will increase by 6 to 110. ART, the whole family of ART West is expected to gradually increase about 40Reached the level of about 230 homes.At the same time, the company also gradually started to cooperate with B business + real estate developers. Through cooperation with national excellent real estate companies and hard decoration companies, it realized the overall delivery of soft and hard 重庆耍耍网 decoration.Among the three expenses, the growth rate of the company’s sales and management expenses decreased slightly, but due to the increase in capacity investment, the company’s debt ratio increased, and the increase in financial expenses increased to 1.About 1 billion yuan, but the outlook is that the cost rate may improve in 2020 due to the state’s support for the financing policies of private enterprises. 3. Exploring the “Immersive and Beautiful Lifestyle” brand pavilion model with a complete brand matrix and maintaining a highly recommended level. Markor Home continued to upgrade its products, and the Wuhan Brand Pavilion implemented a new format sales strategy, collectively arranged the signatures of Markor Home, Caracole, Zest, Rehome, YVVY, Caracole, Markor Black Label, Ethan Allen, JR and the world’s top interior designers.Cooperative brand products, covering the price band of 5-1.2 million / standard sets, will make the brand pavilion a gathering place for furniture and living. In the future, this model will also be promoted in Beijing, Tianjin and other regions.In the future, the company will further improve the efficiency of the supply chain delivery cycle, lay off replacement members, and reasonably manage the inventory scale and expense ratio level.We forecast a return of 19 years.27 yuan, 0 in 20 years.31 yuan, corresponding to 19 years of PE, PB are 16, 1 respectively.6. Maintain “Highly Recommended-A”. Risk warning: Real estate continues to decline, ART joins the business, and the development of the new brand Zest is lower than expected.