Feike Electric (603868): The performance has been extended for four consecutive quarters without overcoming the growth trend
The 3Q19 results were lower than our expected company’s 3Q19 results: revenue 9.95 ppm, with a ten-year average of zero.8%; net profit attributable to mother 1.0.94 million yuan, an average of 13% in ten years.Corresponds to 1Q-3Q19 income 27.20,000 yuan, the average ten years 3.5%; net profit attributable to mother 5.30 ppm, a ten-year average of 14.5%.Corporate expenses have risen rapidly, resulting in lower-than-expected results. Revenue and net profit for 4 consecutive quarters: 4Q18 / 1Q19 / 2Q19 / 3Q19 The company’s revenue was changed to -2 respectively.7% /-4.4% /-5.6% /-0.8%, net profit is lower than -4.8% /-6.3% /-22.5% /-13.0%.First and foremost is the growth of shaver products, and the slow expansion of new product categories. Financial analysis for 3Q19: 1) Gross profit margin decreased by 南京龙凤网 0.4ppt to 39.6%, mainly due to the reduction in gross profit margins of new products other than shavers (1H19 vacuum cleaners, plug strips gross profit margins were 5% and 8%, respectively), and the proportion increased.2) The period expense rate increases by 2 every year.5ppt.Among them, the sales expense ratio increased up to 0.6ppt, maximize the management expense ratio by 1.1ppt, mainly due to the increase in the company ‘s third- and fourth-tier markets with higher revenue and online channel traffic expenses; R & D expenses increased by + 44% to 18.57 million yuan, a growth rate, because the company ‘s wages for R & D staff support the expansionAnd mold development costs increased.3) The above factors led to a decrease in the net interest rate attributable to the parent company in the third quarter of 1919.7ppt to 19.5%. Development trend The price increase of shaver products is reduced: 1) Amoy data show that 1Q / 2Q / 3Q19 Feike ‘s official flagship stores have increased by +21% / + 1% / + 9% respectively, showing a markedly weaker than Philips(2Q / 3Q19 increase at least +50% / + 60% respectively).2) The average transaction price of stores continued to decrease, and the average sales price in 1Q / 2Q / 3Q19 dropped by 6% /-11% /-11%, mainly due to the impact of Xiaomi’s ecological chain.Xiaomi’s ecological chain enterprise Xumei Technology 1Q-3Q19 sells for an average price of 155 yuan / piece, and some parts of the razor products are imported from Japan. The quality and user experience are better, which limits the price increase space of Feike Shavers. Earnings Forecasts and Estimates Due to performance expectations, we lower our 2019 / 20e EPS forecast by 4% / 4% to 1.73 yuan / 1.82 yuan.Maintain Neutral rating and 39.Target price of 68 yuan, corresponding to 23.0 times 2019 P / E ratio and 21.8 times 2020 price-earnings ratio, compared with 15 in the same period last year.1% upside.The current contradiction corresponds to 19 of 2019/2020.9 times / 19.0 times price-earnings ratio. Risk Market demand fluctuates and risks; new product promotion effects are not up to expectations.