Oupai Home (603833): Revenue growth slightly exceeds expectations Channel structure continues to adjust

This report reads: The company actively adapts to channel changes in standardized markets such as bulk and assembly, tries to boost confidence through support and assistance to retail distributors, and tries to gradually increase concentration and steadily grow in multiple channels in the medium and long term.

Investment Highlights: Maintain target price of 136.

8 yuan to maintain the overweight level.

In the third quarter of 2019, the company’s revenue growth increased slightly beyond market expectations. In the non-standard customized retail market, it has a competitive advantage in brands, categories and channels. In standardized markets such as bulk and assembly, it actively responds to channel changes and gradually achieves increased concentration.Long-term efforts to maintain stable growth.
Do we maintain 2019?
EPS is 4 in 2021.

50/5.

26/6.

09 yuan, maintaining a target price of 136.

8 yuan, corresponding to about 26 times PE in 2020, maintaining an overweight rating.

The performance growth basically met expectations, and the increase in revenue growth in the third and third quarters slightly exceeded market expectations.

The company achieved operating income of 95 from January to September 2019.

35 trillion, the same increase of 16.

33%, achieving net attributable profit of 13.

7.8 billion yuan, an increase of 14.

83%, realized non-attributable net profit of 12.

91 trillion, with an increase of 12.

84%.

Among them, the growth rate of 2019Q3 revenue in ten years was 20.

1% slightly exceeded market expectations. Attributable net profit and non-attributable net profit growth rates were 14 respectively.

65%, 10.

52%, performance growth basically in line with market expectations.

Formulate rebate and assistance policies to increase dealer enthusiasm and achieve market share growth in the medium and long term.

Under the pressure of the market environment, the company boosted dealers’ confidence through the implementation of rebate policies and expenses, which affected the current profitability and expense ratio. From a medium and long-term perspective, it 厦门夜网 continued to strengthen the comprehensive strength of terminal market competition.Initial increase in retail market share.

Actively adapt to changes in the channel structure, lay out large blocks, and implement a large home furnishing strategy to increase the concentration of the standardized market.

The company’s superior brand influence and category advantages have achieved rapid development of bulk businesses under stable profitability and good cashback response through cooperation with high-quality real estate developers.

With regard to the assembly of large homes, the company actively resolved possible conflicts between the old and new channels through the system, the pace of investment promotion was rapidly promoted, operation assistance was steadily and steadily, and the medium and long-term attempts were made to continuously 都市夜网 improve the concentration.

Risk warning: changes in demand caused by fluctuations in the real estate market, changes in costs of raw material prices, and changes in costs