Zhejiang Meida (002677): Steady revenue growth and output, brand gradually strengthened

Zhejiang Meida (002677): Steady revenue growth and output, brand gradually strengthened

Event: 佛山桑拿网 Zhejiang Meida released the 2018 annual report, and the company’s revenue was 14.

10,000 yuan, an annual increase of 36.

49%; net profit attributable to mother 3.

7.8 billion, an annual increase of 23.

70%, the company plans to pay dividends for every ten shares4.

65 yuan (including tax).

Key points of investment: Revenue has grown steadily, and gross profit margin has fallen slightly in 2018.

10,000 yuan, an annual increase of 36.

49%; net profit attributable to mother 3.

7.8 billion, an annual increase of 23.

70%; deduct non-attributed net profit 3.

690,000 yuan, an annual increase of 33.

30%.

The company’s investment income decreased by 2113.

900,000 causes the growth rate of net profit attributable to mothers to be less than the growth rate after deductions.

Affected by rising raw material prices, the company’s gross profit margin fell2.

40 points to 南京桑拿论坛 51.

54%.

Reduced corporate expense ratio by 1.

51pct to 19.

42%, of which the sales expense ratio increased by 1.

22pct to 11.

03%, management + R & D expense ratio reduced by 2.

67pct to 8.

67%.

Advertising costs have increased significantly, and brand influence has continued to increase in 2018.

07 billion, an annual increase of 53.

30%.

Through CCTV4 “National Memory”, CCTV13 “Eastern Space Time” and other CCTV media advertising, named 7 high-speed rail columns, increase the brand awareness of new media advertising companies continue to increase.

The new plant is about to be completed, and the production capacity will be further increased. The existing company’s new 1.1 million integrated stoves and high-end kitchen electrical product projects have completed the construction of all the main works of the plant.

This will smooth the company’s future production capacity constraints and help the company to grow steadily in the future.

Maintaining the “Recommended” level With the increase in the penetration rate of integrated stoves and the strengthening of the company’s brand power, we expect the company’s EPS to be 0 in 2019-2021.

67, 0.

79 and 0.

94 yuan / share, maintaining the recommended level.

Risks indicate that the penetration rate of integrated cookers is lower than expected risks, the company’s brand power is lower than expected risks, and the real estate recovery is lower than expected risks.