Pien Tze Yuen (600436): Performance is in line with expectations and rapid growth is still expected
The 2018 results are in line with expectations of the company’s 2018 annual results: operating income 47.
6.6 billion, an increase of 28 every year.
33%; net profit attributable to mother 11.
4.3 billion, an increase of 41 every year.
62%, corresponding to profit 1.
Performance is in line with our expectations.
The company plans to distribute a cash dividend of 6 for every 10 shares.
00 yuan (including tax).
The development trend of the main products has increased by more than 30%, and the daily chemical series has grown by more than 55%.
By industry, industrial income in 2018 was 18.
80 billion, an increase of 28.
45%, of which the flagship product Pien Tze Huang series has increased by more than 30%; business income 23.
5.4 billion, an increase of 23.
83%; daily chemical income 4.
9.8 billion, an increase of 56.
71%, benefiting from the continued improvement of brand influence; food 13.48 million.
The selling expense ratio has declined.
The company’s comprehensive gross profit margin in 2018 was 42.
42%, a decrease of 0 every year.
84ppt, mainly due to the decrease in gross profit margin of core products for liver disease medication3.
45ppt and low gross margin business revenue dragged down.
Selling expense ratio 8.
23%, down 2.
64ppt, mainly for company promotions, business promotion, and advertising expenses have been reduced.
Operating net cash flow 6.
1.2 billion, a decrease of 9 per year.
55%, mainly due to the increase in cash paid for purchasing goods.
Leveraging the Pien Tze Huang Experience Hall, it continues to expand to the whole country.
Since 2016, the company has restarted the price increase model, and at the same time, it has vigorously 青岛夜网 established the Pianzai Experience Museum, which covers domestic scenic spots, airports, moving stations, and bustling commercial districts in the city. It has increased brand influence from south to north, while driving daily chemical product sales.
At present, the construction area of the experience hall is developing in depth. Xinjiang, Shanxi, and Inner Mongolia provinces have achieved a “zero” breakthrough in the blank market. In the future, the company will continue to expand national coverage to ensure long-term sustainable development.
Earnings forecast remains unchanged from 2019 earnings forecast2.
53 yuan, first date 2020 profit forecast3.
23 yuan, with annual growth of 33.
5% and 27.
It is estimated and suggested that the company’s current sustainable corresponding 19/20 P / E is 46.
9x / 36.7 times, 都市夜网 maintaining the recommendation level. Due to the scarcity of the company’s brand, and it is expected to continue to maintain rapid growth, much higher than the growth level of comparable companies. Given a certain estimated premium, we have raised our target price by 20% to 130 yuan, corresponding to 19/20P / E is 51x / 40x, which is 10% more space than the previous one.
The progress of the price increase of the main products of risk exceeded expectations; the expansion effect of big health products was lower than expected.