Daya Icon (000910): Stabilizing performance and focusing on improving governance
Investment Highlights Event 1: Daya Elephant Announces 2018 Annual Report, and the company achieved revenue of 72 in 2018.
61 ppm, a 10-year increase3.
02%; net profit attributable to mother 7.
25 ppm, an increase of 9 in ten years.
95%; net profit deducted from non-attributed mothers7.
110,000 yuan, an increase of 10 in ten years.
Net cash flow 南宁桑拿 from operating activities 10.
30,000 yuan, a decrease of 15 a year.
63% was mainly due to the increase in cash paid for purchasing goods and receiving labor services.
Construction in progress 0.
1.5 billion, a decrease of 91 every year.
94%, mainly because Daya Wood Industry (Jiangsu) Co., Ltd. has an annual output of 500,000 cubic meters of particleboard production line put into operation, and construction in progress is converted into fixed assets.
In the fourth quarter alone, the company realized revenue of 21.
51 ppm, a decrease of 3 per year.
08%; net profit attributable to mother 2.
8.3 billion, down 4 each year.
46%; net profit after deducting non-return to mother 2.
77 ppm, a decrease of 4 per year.
Event 2: Daya Icon published the first quarter report of 2019, and the company achieved revenue of 14 in Q1 2019.
13 ppm, an increase of 1 per year.
08%; net profit attributable to mother is 0.
63 ppm, an increase of 9 per year.
69%; net profit deducted from non-attribution to 0.
61 ppm, an increase of 9 in ten years.
65%; receivables 9.
14 ppm, an increase of 11 per year.
The growth rate stabilized in the first quarter, and the bulk business drove steady growth in the main business.
1) The core main business has stable revenue and pays attention to the development of engineering business.
The company continues to promote the development of engineering business. It has established strategic cooperation relationships with more than 70 real estate developers such as Vanke, Poly, and China Shipping. In 18 years, the engineering business expanded at a high speed, so the sales of engineering flooring increased by over 40%.
Revenue of the company’s mid- to high-density board business in 201819.
15 ppm, an increase of 9 in ten years.
14%; revenue from wooden flooring business was 50%.
47 ppm, a ten-year increase2.
34%; wooden door and cloakroom business revenue was 0.
0.8 billion, an annual increase of 1.83%.
2) The domestic market has grown steadily and the scale of export has shrunk.
In 2018, the company’s domestic market revenue was 62.
23 ppm, a five-year increase of 5.
92%; overseas market revenue 9.
54 ppm, a decrease of 11 per year.
Rising gross profit margin repaired, the gross profit margin of domestic and foreign markets rose.
The company achieved a gross profit margin of 34 in Q1 2019.
62pct), the company achieved a gross profit margin of 36 in 2018.
1) The overall gross profit margin level is stable.
Medium and high density board business gross margin 22.
); Gross profit margin of wood flooring business 41.
); Wooden door and cloakroom business gross profit margin 25.
2) The gross profit margin of foreign markets is obviously repaired.
Gross domestic market margin 38.
); Overseas market gross profit margin 18.
Management expenses were raised in advance and profitability was basically flat.
The company’s 2019Q1 net profit is 4.
04pct), 2018 net profit margin 10.
The company has an expense ratio of 28 during the 2019Q1 / 2018 period.
47 points) / 23.
41pct), of which the selling expense ratio is 16.
24 points) / 13.
27 points); management expense ratio 11.
56 points) / 10.
38pct), financial expense ratio is 0.
32pct) / 0.
71pct), mainly due to the increase in R & D expenditure and the decrease in index expenditure.
Fair progress has been made, which is beneficial to the improvement of corporate governance structure.
On October 18th, Ms. Dai Pinhe, the actual controller of Daya’s iconostasis, invested in Yibo Rui Te / Zhuo Rui 31 held by her.
525% / 54.
5% of the equity was transferred to Mr. Chen Jianjun.
After the completion of the equity transfer, the controlling shareholder and actual controller of Daya Shengxiang remain unchanged.
We believe that the current transfer of distribution between actual controllers is conducive to enhancing Mr. Chen Jianjun’s right to speak in the governance of listed companies and optimizing the company’s internal governance capabilities.
At the same time, the two-way incentive plan implemented by Daya Shengxiang in 2016 and 2017 covers the headquarters and subsidiaries’ executives and front-line business personnel, which is beneficial to reducing the company’s internal agency costs.
Product, scale, and brand advantages are significant, leading mergers are solid.
1) Capacity: The company currently has a capacity of 1.85 million cubic meters per year for medium- and high-density board and particleboard, and a floor capacity of 53 million square meters per year. It has leading advantages in scale production and market competitiveness.
2) Brand side: Daya Shengxiang has nearly 3,000 floor license stores with unified authorization and unified image, and also develops online Tmall, JD.com and Suning distribution franchise stores.
In 2018, the “Icon” brand value was 415.
62 ppm, the brand value of Daya Wood-based Panels is 125.
US $ 8.6 billion, ranking first in China’s home furnishing industry and wood-based panel industry respectively. The company reported that it launched the newly upgraded “Shangxiang” brand image logo for the first time to further strengthen its brand power.
Investment suggestion: The company’s internal control efficiency is expected to improve, and the long-term benefits of hardcover housing policy will be implemented, and the performance will continue to grow steadily.
We predict that the company will achieve 77 revenue in 2019-21.
60 ppm, a ten-year increase of 7.
80%, realizing net profit attributable to mother 8.
93 ppm, an increase of 12 in ten years.
04%, the corresponding EPS is 1.
79 yuan, “overweight” grade.
Risk reminder: the real estate boom will increase the risk and the price of raw materials will rise.