Chenguang Stationery (603899): Revenue growth grows in line with expectations New business steadily advances
Introduction to this report: Klip’s revenue has increased rapidly and entered the harvest period from the launch period; the Jiumu Sundries Club promotes the improvement of terminal competitiveness. The four tracks of Volkswagen, boutique cultural and creative, office products and children’s arts have contributed to the company in an orderly manner.Aspects of growth.
Investment Highlights: Raise target price to 49.
5 yuan, maintain overweight rating.
Volkswagen, boutique cultural and creative, office products and children’s fine arts four tracks are advancing in an orderly manner, Klip’s income is rapidly increasing and gradually enters the harvest period; Jiumu Sundry Club promotes the improvement of terminal competitiveness.
Maintaining 2019?
The EPS in 2021 is 1.
10/1.
36/1.
65 yuan, with reference to comparable companies and considering that Chenguang Stationery has given a certain premium to the segment industry leader, giving 30 times PE in 2021, raising the target price to 49.
5 yuan to maintain the overweight level.
Revenue and performance growth were in line with expectations.
The company achieved operating income of 48 in 2019H1.
39 trillion, an increase of 27.
78%, net profit attributable to the company4.
710,000 yuan, an increase of 25.
78%, realized non-attributable net profit4.
27 trillion, an increase of 25.
39%.
Net cash flows from operating activities increase by 50 per year.
64%, mainly due to the effective management of cash flow from sales, procurement and other operating activities.
The office direct sales business is in the industry dividend period, and Colip has grown rapidly.
With the development of the industry’s dividend period, Klipp actively lays out customers and has been shortlisted for a number of central enterprises and large enterprise customers.
In terms of market expansion, Colip is engaged in the operation of 5 central warehouses and self-built distribution teams in 9 cities including Beijing, Shanghai, Guangzhou and Shenzhen to improve efficiency and further improve customer experience.
In 2019H1, Klip achieved revenue of 1.5 billion, a 56% increase, and its share of office direct sales and brand influence has further increased.
The four tracks are fully advanced, and the franchise model promotes the rapid development of the living hall.
The company has dug deep into the market segments, actively deployed the masses, high-quality cultural and creative, office, children’s art products and enhanced terminal capabilities.
In terms of living halls, Jiumu Miscellaneous Society was released to join and achieve rapid 杭州桑拿 growth.
6.4 billion, an increase of 240%. The number of stores is 171, of which 114 are directly managed and 57 are joined. The living hall and Jiumu Sundry Club achieved a total of 2 revenues.
300 million, an increase of 95%, the boutique cultural and creative market business is steadily advancing.
Risk reminder: the risk of raw material price fluctuations, channel expansion is not as expected
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