Zhongshun Jierou (002511): The gross profit margin significantly increased the revenue growth rate beautiful

Zhongshun Jierou (002511): The gross profit margin significantly increased the revenue growth rate beautiful

Event: The company achieved revenue of 15 in the first quarter of 2019.

410,000 yuan, an increase of 25 in ten years.

78%; net profit attributable to mother 1.

23 ppm, an increase of 25 in ten years.

18%; net profit after deduction to mother 1.

22 ppm, an increase of 33 in ten years.

13%.

The company’s 2015 Financial Savings Incentive Plan granted the achievement of unlocking conditions for the third unlocking period for the first time.

Opinion: The product side and the channel side work together to achieve rapid growth in revenue.

Company Q1 achieved revenue of 15.

4.1 billion, an annual increase of 25.

78%; net profit attributable to mother 1.

23 ppm, an increase of 25 in ten years.

18%; net profit after deduction to mother 1.

22 ppm, an increase of 33 in ten years.

13%.

The company continued to launch new products in 2018, and sales of new products continued to grow.

In addition, the company has continuously improved its marketing network, from a single dealer channel before 2015 to the development model of the four major channels of GT, KA, AFH, and EC. At the end of 2018, the company added new mother and infant and new retail channels.The construction of channels has improved the company’s profitability.

The gross profit margin improved significantly, and the increase in expense ratio decreased significantly.

19Q1 company achieved gross profit margin of 23.

51%, a significant increase of 3 from the previous quarter.

05pct.

Since 2019, the average price of Brazilian goldfish bleached broadleaf pulp has been USD 744 per ton, which was earlier in the same period in 20189.

23%, the price of raw materials fell, and the cost pressure of the company was reduced.

In addition, the company’s raw materials are mainly imported from overseas, and the appreciation of the RMB in 2019 is obvious, so the gross profit margin of 19Q1 has improved significantly.

In the future, the company’s high-end products will be gradually increased, and the proportion of sales of high-margin products will increase the gross profit margin.

The gross profit margin was high in 2018 and then low. The gross profit margin continued to increase this year, and the company’s performance 上海夜网论坛 promoted accelerated growth.

19Q1 company expenses 23.

51%, a significant decline every year 5.

44 points.

The sales / management / financial expense ratios are 17 respectively.

24% / 5.

89% / 0.

38%, respectively, for short-term is 3.

73/0.

86/0.

84pct, the sales expense ratio dropped significantly.

Profit forecast and estimation: It is expected that the company will achieve EPS of 0 to 19-21.43 yuan, 0.

55 yuan, 0.

67 yuan.

Corresponding PE is 23X, 18X, 15X.

Maintain “Buy” rating.

Risk Warning: The RMB appreciates substantially and the price of raw materials rises significantly.