Piano (002853): High volume of large-volume closet drives rapid revenue growth

Piano (002853): High volume of large-volume closet drives rapid revenue growth
Event: The company announced its 2018 annual report and achieved revenue 11 in 杭州夜网 18 years.1 ppm, an increase of 34 in ten years.34%, net profit attributable to mother 1.420,000 yuan, an increase of 37 in ten years.95%; net non-profit increased by 37.4%.It is planned to send 2 yuan for 10 in 2018.  Comments: 1. Bulk, wardrobe is the main driver of revenue growth. The extension of the wooden door category in 19 is worth looking forward to by product. In 18 years, cabinet and wardrobe income increased by 27.6%, 56.3%, wardrobe revenue accounted for an increase of 3 in two years.7pct to 26.7%.From the perspective of distribution channels, the revenue of bulk channels increased by approximately 10% and 107%, respectively. The proportion of bulk business to revenue rose to 28%, which has become an important growth driver for the company.At the same time, the heavy volume of the project eventually increased the bills receivable and accounts receivable by 120.52%, net cash flow from operating activities decreased by 90%.3%, the decrease from the previous quarter has continued to improve.In 19, the company plans to continue to increase the top 100 national real estate developers’ strategic cooperation and engineering dealers to attract investment. It is expected that the proportion of major business in the future will still have room for improvement.In terms of store expansion, at the end of 18, the total number of dealer stores was 1,256, a net increase of 153 earlier. The company plans to add wooden door categories in 19 years.In 2021, 400 new stores will be opened each year, and 345-tier cities will be vigorously deployed to implement the rural market business model.Q4 single quarter revenue increased by 22 in ten years.4%.  2. The profitability is stable, and the gross profit margin has increased steadily for 18 years.9%, up 1 year.5pct, of which the gross profit margin of the cabinet is 38.2% is basically the same. Due to the scale effect of the wardrobe, the gross profit margin has gradually increased by 5,8pct to 30%. It is expected that there will be room for improvement in the future.In 18 years of sales, the financial expense ratio has changed by -0.7pct, +1.56 points, management + R & D expense rate is stable, net profit margin is 12.58% first basically stable; diluted ROE13.8%, an increase of 2 per year.5pct, overall profitability remains solid.Q4 return to mother in a single quarter, deducting non-net profit increased by 21.16%, 64.38%, is expected to forecast 1Q19 net profit growth range is 0%?40%.  3. Equity incentive + employee shareholding demonstrates development confidence and maintains the “prudent recommendation-A” rating company launched equity incentive in 18 years, 2018?The net profit target for 2020 is not to be reduced by 30%, 70%, or 120% compared to that in 17 years. In February 19, the employee stock purchase was completed, and the average purchase price was 17.7 yuan / share.In the future, we are optimistic about the company’s multi-channel and category expansion model: 1) The retail network continues to break through the store opening space, strengthen online and offline integration, and promote the B2B2C model engineering business. The sub-brand Mirala focuses on the Internet home improvement and assembly channels; 2) the scale of wardrobeThe effect is gradually apparent, and the layout of wooden doors and smart homes in the future is worth looking forward to.Expected 2019?In 2021, the net profit attributable to mothers will be 1.8.2 billion, 2.310,000 yuan, 2.84 ppm, a year-on-year increase of 28%, 27%, and 23%. The current PE is expected to be 20x in 19 years, maintaining the “prudential recommendation-A” rating.  Risk warning: industry competition is intensifying, and real estate sales fall short of expectations.