Wanhe Electric (002543) Commentary Report: Channels, Categories, Sustainable Development, Profitability Trends Are Better

Wanhe Electric (002543) Commentary Report: Channels, Categories, Sustainable Development, Profitability Trends Are Better

The report guide company released the 2018 annual report and the 19th quarterly report.

Investment Highlights Revenue declined in the first quarter, and net profit achieved rapid growth. In 2018, the company achieved operating income of 69.

14 ppm, a five-year increase of 5.

85%, realizing net profit attributable to shareholders of the parent company.

89 ppm, an increase of 18 years.

27%, budget benefit 0.

85 yuan.

At the same time, the company distributed a cash dividend of 4 to every 10 shares for all shareholders.

30 yuan (including tax), the capital reserve will be transferred to all shareholders for every 10 shares of 3 shares.

The company achieved revenue of 20 in the first quarter.

23 ppm, a ten-year average of 6.

81%, achieving net profit attributable to shareholders of the parent company.

78 ppm, an increase of 21 in ten years.

44%, budget benefit 0.

31 yuan.

In terms of steady growth in domestic sales, in terms of external sales channels, channels, and categories of sustainable development channels, the company’s domestic sales revenue for 18 years was 45.

40,000 yuan, an increase of 9 in ten years.

97%, the company continued to promote the comprehensive upgrade of channels, consolidate the first- and second-tier markets, and expand the third- and fourth-tier markets. At the same time, the company increased online spending to achieve complementarity and integration of online and offline channels.

18 years of company traditional channels such 26.

110,000 yuan, an increase of 20 in ten years.

26%; e-commerce channels 11.

08 million yuan, an increase of 23 in ten years.

29%.

The company’s export revenue for 18 years23.

160,000 yuan, ten-year average 1.

16%, which is mainly due to the increase in the price of raw materials before pushing up the company’s costs and increasing prices, and expanding the Sino-US trade war to increase tariffs on its export products.

However, looking forward to the future, the company’s products are exporting to Russia, South America, the Middle East, Southeast Asia and other emerging overseas markets, so the company’s export trade ability to resist risks is enhanced.

In terms of products, under the “Thirteenth Five-Year Plan” of energy structural reform, the construction of natural gas pipeline networks is accelerating to the county level and even the townships.Inverter cloud intelligent zero cold water gas water heater L8, zero cold water intelligent constant temperature strong row gas water heater L6, and intelligent adaptation G series inverter hot water boiler and other intelligent high-end gas water heaters. The company’s gas water heater output increased in 18 years.

At 08%, the “Wanhe” brand gas water heater has ranked first in the industry for 15 consecutive years.

At the same time, the company actively promoted cigarette machine products and sought for further incremental markets. In 18 years, the cigarette machine replaced the previous growth of 51.

92%.

In addition, the company has gradually entered new kitchen and electric product categories such as water purifiers, electric ovens, dishwashers, and integrated stoves. Based on the overall kitchen and electric solution, it has opened up new market growth space.

In the first quarter, the gross profit margin increased, and the profitability trend improved for the past 18 years.

52 up to 29.

29%, net interest rate increased by 0 in the short term.

73 up to 7.

16%.

The company’s gross profit margin in the first quarter of 19 was extended and increased by 5.69 up to 32.

38%, mainly due to the optimization of product structure and changes in channel structure, the decline in cumulative raw material costs, the sales and management expense ratio increased in the first quarter, and the net profit margin increased by 2.

22 up to 8.

99%, overall, the company’s profitability trend is improving.

Maintain “Buy” rating and expect the company’s revenue to be 74 in 2019-21.

600 million, 82.

200 million and 90.

8 ppm, the annual growth rate is 7 respectively.

8%, 10.

2% and 10.

4%, the net profit attributable to the parent company is 5, respectively.

800 million, 6.

600 million and 7.

50,000 yuan, the annual growth rate was 18.

2%, 14.

9% and 13.

0%, EPS for 2019-21 is 1.

01 yuan, 1.

16 yuan and 1.

31 yuan, corresponding to PE14.

0 times, 12.

2 times and 10.

8x, maintain “Buy” rating.

Risk Warning: The risk of sharp fluctuations in raw material prices; the downturn in the real estate market; increased 天津夜网 industry competition; the risk of exchange rate changes