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Supor (002032): expected to maintain steady growth in 1H19

Supor (002032): expected to maintain steady growth in 1H19
Forecasting 1H19 earnings annual growth of 14% We expect 1H19 Supor revenue to grow 13% annually, net profit growth 14%. Key points of concern The company’s growth rate ended in 1Q19: In 2018, the company’s revenue and net profit increased by + 26% and + 28% respectively; in 19Q19, the company’s revenue and net profit increased by + 12% and + 14% respectively.2) The highest income is the lowest growth rate of large kitchen appliances. The small unit price of kitchen appliances and cooking utensils is low, and the impact of the economic cycle is relatively small: 1) AVC monitoring, 1H19 industry retail sales online, offline alternate + 11%, -4%.2) Supor’s 1H19 online, offline retail sales performed better than the industry, respectively + 18% and + 1%. The market share of the company in 1H19 continued to increase (online +0.6ppt, offline +0.7ppt).3) Amoy data monitoring, Supor flagship store 2Q19 section is about + 42% to 65.84 million yuan.However, the highest growth rate of online cost-effectiveness, the average transaction price of the flagship store of Supor cookware fell by 22%. The growth rate of chefs ‘electric appliances has increased rapidly, and the contribution of category expansion to the company ‘s growth has decreased: AVC monitoring, 1H19 Supor ‘s total retail sales on chef ‘s wires + 20%, the performance is still higher than the industry growth rate (more than + 5%), but less than 2018(One year + 54%) growth rate. The initial fluctuations expected by the company are mainly due to the market’s reconsideration of changes in revenue growth since 1Q19, and adjustments after excessively high short-term increases.We are optimistic about the company’s long-term stable growth trend. Once it has reached the target price, there is room for an increase of 13%, and we maintain an outperform rating. Estimates and recommendations maintain 2019 / 20e EPS forecast2.39/2.82 yuan.Maintain Outperform rating and target price of 77.42 yuan, corresponding to 32x / 27x 2019 / 20e P / E, the increase space is 13%.The company currently corresponds to 29x / 24x 2019 / 20e P / E. 四川耍耍网 Risk market fluctuations have resulted in lower-than-expected revenue.