Jiuyang (002242) Annual Report Comments: Product Power Enhancement Channel Innovation Continues

Jiuyang (002242) Annual Report Comments: Product Power Enhancement Channel Innovation Continues

Event: The company released its 2018 annual report, and its revenue was 81.

690,000 yuan, an annual increase of 12.

71%; net profit attributable to mother 7.

5.4 billion, an annual increase of 9.

48%.

The company plans to pay dividends for every ten shares.

00 yuan (including tax).

  Investment highlights: Revenue has returned to growth in both countries, and gross profit margin has fallen slightly. In 2018, company revenue was 81.

690,000 yuan, an annual increase of 12.

71%.

The gross profit margin was affected by the cost increase14.

19% impact, falling by 0 every year.

88pct to 32.

13%.

The total expense ratio increased by 2 due to the sales expense ratio.

84pct, management + R & D expense rate increased by 0.

55pct increased by 3.

28 points to 19.

74%.

Reduced 南京桑拿网 gross profit margin and growth in expense ratio Productivity company’s net profit margin decreased by zero.

72 points to 9.

08%.

Brand upgrade and continuous improvement of product power In 2018, the company was successfully selected into the “CCTV National Brand Plan” and cooperated with Youku to increase advertising in World Cup videos.

Through publicity and promotion at all levels, the brand’s influence has continued to increase.

The company redefines the company’s healthy brand image in 2019, and through its youthful strategy, its product power continues to improve.

Established a Tmall direct operation online and settled offline in the shopping mall. In 2018, the company has been exploring new online and offline channels.

Online, the company set up a Tmall-operated store; it settled offline in the shopping mall to create a “Jiuyang House”.

Through the three-dimensional sales of brand flagship stores, brand experience stores, and brand specialty stores, it can cover different levels of the market.

Upgrading to “Recommended” rating We believe that the company’s performance may continue to improve through the changes in the company’s products, channels and company management.

We expect the company’s EPS to be 1 in 2019-2021.

06, 1.

18 and 1.

31 yuan / share, raised to the “recommended” level.

Risks indicate that the company’s new product launch is less than expected, and the company’s channel development is less than expected risk.