+123 456 4444

Boss Electric (002508): Opportunities to Reset the Turning Point

Boss Electric (002508): Opportunities to Reset the Turning Point
The incident described that Boss Electric released the three quarterly report for 19 years, and the first three quarters achieved revenue of 56.25 ppm, a ten-year increase4.29%, realizing attributable net profit of 10.86 ppm, a ten-year increase of 7.31%, achieving EPS1.14 yuan; revenue of 20 in the third quarter.98 ppm, an increase of 10 in ten years.56%, realizing attributable net profit4.15 ppm, an increase of 18 in ten years.20%, achieve EPS0.44 yuan; the company is expected to increase its annual performance by 2-10%. Incident Review Project continued to perform brightly, revenue growth rebounded strongly: The company’s revenue growth rebounded strongly in the third quarter, of which the engineering channel increased by more than 120%, the performance was extremely dazzling, and the active preparation of distributors led to a significant decline in offline retail channel revenueNarrowing down, the e-commerce channel continued its steady trend.With the pre-sale of a large number of pre-sale renovations gradually welcoming changes in the configuration of kitchen appliances, the company ‘s engineering channel dividends continue to be released and the changes are determined, and the completion of the recovery of engineering data is expected to lead to a sequential improvement in terminal demand under kitchen electric wires.It is expected that the company’s subsequent revenue will continue to grow better. The gross profit margin improved significantly and the growth rate exceeded market expectations: Although the proportion of low gross profit engineering channels continued to rise, the company’s gross profit margin continued to increase in the third quarter.62pct to 55.69%, the improvement is even more significant. It is expected to benefit mainly from the decrease in the cost of the company’s main production raw materials and the reduction in the conversion rate.In terms of expense ratio, the company’s sales, management and R & D expense ratios were changed to 0 in the third quarter.94, 0.19 and 0.13pct, the overall period cost rate is improved by 1.07pct; the overall impact of the company’s net profit margin in the third quarter of the third quarter increased by 1.28 points to 19.80%, and led the performance to exceed market expectations; overall, the company’s operating inflection point in the third quarter is very clear. The cash flow performance 北京夜生活网 is excellent, and the “α” attribute is expected to reappear: the company’s net operating cash flow in the third quarter increased significantly by 381.97% to 3.77 ppm, with excellent performance; and the company’s channel inventory is at a low level, and the overall operating quality is extremely guaranteed.In the medium and long term, after the proportion of refined decoration in new homes has increased, kitchen electrical engineering channels will continue to increase and become more prominent; as a high-end kitchen electric leader, based on comprehensive advantages such as product power and brand power, the company has reached over 80% of the top 100 real estate nationwide.Expansion of cooperation between enterprises and major cabinets and home improvement companies; the continued heavy volume of subsequent restructuring projects, the company’s market share growth trend is determined, and the channel dividends triggered in the real estate cycle fulfill more “α” attributes. The inflection point of fundamentals was reset, and the company ‘s “Buy” rating was re-established. Benefiting from the continuous heavy volume of engineering channels and the narrowing of the decline in offline channels, the company ‘s revenue growth rebounded rapidly in the third quarter, and the use of original dividends led to a significant improvement in gross profit margin.Performance has improved, market expectations have improved, and operating inflection points have been established.From a follow-up point of view, considering that the company’s engineering channel has ample orders in hand and the recovery of completion data is expected to drive the offline retail boom, the company’s operating improvement trend may still continue, and its long-term growth momentum is also abundant.In summary, the company’s EPS in 2019 and 2020 are expected to be 1.71, 1.96 yuan, corresponding to the current expected estimate of 16.95, 14.77 times, re-buy rating.Risk reminders: 1. The development of the engineering channel is less than expected; 2. The channel sinking progress is less than expected; 3. The industry is experiencing a large-scale price war.