Kouzijiao (603589): Product structure continues to upgrade, net profit margin hits record high

Kouzijiao (603589): Product structure continues 深圳桑拿网 to upgrade, net profit margin hits record high

Event: The company released its 2018 annual report, and the company achieved operating income42.

69 ppm, an increase of 18 years.

50%, net profit attributable to mother 15.

33 ppm, an increase of 37 in ten years.

62%, net profit after deduction is 14.

69 ppm, an increase of 36 in ten years.


Realized operating income in the first quarter of 201913.

62 ppm, a ten-year increase of 8.

97%, realizing net profit attributable to mother 5.

45 ppm, an increase of 21 per year.

43%, net profit after deduction is 5.

390,000 yuan, an increase of 22 in ten years.


Revenue grew steadily and profits exceeded expectations.

The company’s 2018Q4 revenue was 10.

600 million, net profit attributable to mother 3.

9 trillion, an increase of 19 each year.

6%, 84%; Revenue for the first quarter of 201913.

600 million, net profit attributable to mother 5.

500 million, an increase of 9% each year, 21.


In view of the fourth quarter of 2018 and the first quarter of 2019, net profit has continued to increase due to price increases, product structure upgrades, and lower expense ratios.

6% exceeded market expectations.

At the end of 2018, the company’s accounts received in advance were 9.

180,000 yuan, an increase of 3 from the previous month.

4.5 billion, a record high.

The product structure continued to upgrade, and the net profit margins reached a new high.

Reported first-class company’s premium liquor revenue of 40.

6 ppm, an increase of 21 in ten years.

67%, the proportion of high-grade liquor further increased to 96.

16%, mid-range and low-grade liquor revenue growth rates were -25.

19%, 20.


Under the continuous upgrade of product structure and price increase, the company’s gross profit margin in 2018 reached 74.

37%, an annual increase of 1.

47pct, the gross profit margin in Q1 2019 reached 77.

83%, an annual increase of 3.09pct, a record high.

In terms of period expenses, the sales expense ratios for 2018 and 2019Q1 were 9 respectively.

18% (-0.

97 points), 9.

01% (+0.

13 pct), and the management expense ratio is 4.

21% (-0.

94 points) and 3.

42% (-0.

11%), business tax and surcharge are 15 respectively.

92% (-1.

24 points) and 14.

18% (-1.


Affected by the above factors, the net profit in the first quarter of 2018 and 2019 increased to 35.

90% and 40.


Expansion outside the province has developed well, with its share steadily increasing.

In 2018, the company sinks further in the province’s internal channels, promotes the in-depth 南京夜生活网 operation of markets at and below the county level, and sales revenue in the province’s market is 35.

60 ppm, an increase of 17 in ten years.

45%; the market outside the province seeks strategic partnerships with key distributors, and continues to adopt the method of superiority and inferiority to ensure the healthy development of the market and sales revenue outside the province6.

62 ppm, an increase of 27 in ten years.

87%, the proportion increased by 1.

14 points to 15.


Profit forecast: The company’s EPS for 2019-2021 is expected to be 3.

04 yuan, 3.

51 yuan and 4.

At 03 yuan, the price-earnings ratios are 20 times, 17 times, and 15 times, respectively, giving a “buy” rating.

Risk warning: food safety risks; increased competition in the industry