Yanghe shares (002304): Performance in line with expectations Short-term pressure in the province is still optimistic about medium- and long-term competitiveness

Yanghe shares (002304): Performance in line with expectations Short-term pressure in the province is still optimistic about medium- and long-term competitiveness

The event company released a report on 2018 results.

The company achieved revenue of 241 in 2018.

21 trillion, adding factories in ten years.

1%; realized operating profit of 108.

0 ppm, an increase of 22 in ten years.

2%; net profit attributable to mother 81.

10,000 yuan, an increase of 22 in ten years.

3%; corresponding to basic income 5.

38 yuan.

Brief evaluation of the fourth quarter revenue, profit in line with expectations.

The company achieved operating income of 31 in the fourth quarter alone.

6 ppm, a ten-year increase of 3.

8%, a significant drop from the previous three quarters, mainly due to the strong profits of competing channels squeezed some of the company’s market, and the company’s active control of goods in the fourth quarter.

We believe that in the long run, the company is expected to return to a faster growth rate in the future. One company still has the competitive strength in terms of products and channels, and the other is healthy and active outside the province.

Achieved operating profit in the fourth quarter alone14.

100 million US dollars, flat for one year; net profit attributable to mothers10.

7 ppm, a 10-year increase2.

0%.

The initial net profit margin increased steadily, mainly due to the optimization of the product structure, and the price increase also contributed in part.

The company’s headquarters has a net profit margin of 33.

6%, increasing by 0 every year.

3pct is mainly due to the optimization of the product structure driven by the rapid growth of the Dream series.

Grassroots tracking shows that the Dream series still maintains strong growth in 2018, with revenue growth of more than 50%, of which the growth outside the province is over 70%, the growth rate within the province is close to 50%, and the termination of the Dream series is expected to increase to more than 30%.
In addition, in the third quarter, the company raised the price slightly through the sea and sky series of replacements. It is expected that it will also contribute positively to profits.

Actively respond to short-term challenges. 南京桑拿网 There is little problem with revenue growth of more than 10% in 2019. In the medium and long term, it will promote the return to a faster growth track.

The company actively responds to the problem of penetration of the current market growth pressure in the province, and will continue to advance its deep distribution strategy in 2019. One will further segment the market in the province and newly establish two regions, Huai’an and Sutong; the second will continue to advanceThe promotion and sales of Hai, Tian, and Dream series are expected to achieve a growth of more than 30% in 2019, which will contribute nearly 10% to the overall revenue growth rate, and the company’s overall revenue growth probability is more than 10%.

Earnings forecast and investment recommendations are estimated to be 81 in 2018-2020.

1,94.

9, 119.

10,000 yuan, an increase of 22 in ten years.

4%, 17.

1%, 25.

4%; EPS are 5 respectively.

38, 6.

30, 7.

90 yuan, closing price of 109 on February 27.

90 yuan corresponding to 2018?
The static PE will be 20 in 2020.
4/17.
4/13.

9 times, referring to comparable company estimates, giving 20 times PE in 2019, raising the target price to 127 yuan.

Maintain “Buy” rating.