Aojiahua (002614): Independent brand heavy volume Q1 stable operation
Event: Ogilvy Announces 2018 Annual Report and 2019 First Quarter Report.
The company’s single quarter revenue in 2018Q4 was 16.
700 million, a year-on-year increase of +18.
8%; performance 1.
300 million, YoY-3.
2019Q1 achieved revenue of 12.
400 million, a year-on-year increase of +20.
2%; performance 0.
400 million, a year-on-year increase of +30.
We expect that through the increase in overseas orders and new product listings, Ojiahua’s revenue is expected to continue to grow rapidly.
OGAWA, a domestic independent brand, has grown rapidly: According to the announcement, the domestic sales of OGAWA in the fourth quarter of 2018 was approximately 2.
200 million, a year-on-year increase of +41.
2%, faster than the company’s overall revenue growth.
We expect domestic OGAWA sales in Q1 2019 to continue this trend.
According to our analysis, the company continues to introduce new products and has high market acceptance, which is the most important factor for rapid growth 武汉夜网论坛 in revenue.
According to the announcement, in 2018, the global sales of Mitsumi Ward Master Chairs exceeded 3.
70,000 units, compared with 20,000 units in the same period last year.
Expenditure increased significantly: According to the announcement, in 2018, the domestic OGAWA net interest rate was 6.
2% per year -0.
6pct, we analyze, this is mainly due to: 1) the company increased investment in research and development.
In 2018, Aojia’s R & D expenses were 1.
800 million, a year-on-year increase of +36.
2) Selling expenses increased.
In 2018, the company’s sales expenses were nearly 1 billion yuan, a year-on-year increase of +22.
We believe that Aojiahua knows R & D and accelerates the launch of new products, which is conducive to grab market share of massage equipment.
Recovery of 西安耍耍网 performance growth: The company’s fourth-quarter performance growth in 2018 was mainly due to the hedging business affected by exchange rate changes, and investment income in the fourth quarter was -0.
4 trillion, compared with 0 in the same period last year.
9.2 billion yuan.
According to the operating situation in the first quarter of 2019, the company’s investment income has now recovered.
It should be noted that due to subject adjustments, the company’s non-operating income in the fourth quarter of 2018 is included in the income from simultaneous asset disposal, so the non-operating income of the annual report replaces the third quarterly report.
Q1’s operating cash flow declined: Aojia’s net operating cash flow for Q1 2019 was -1.
1 trillion, a month-on-month decrease, mainly due to the company’s increase in the amount of prepayments in the first quarter, which caused the prepayments to reach 3 at the end of March.
9 trillion, an increase of 162 over the end of 2018.
6%.We expect that the cash flow will improve through subsequent receivables.
Investment suggestion: The company has a complete massage appliance industry chain, and its brand influence has gradually increased. Considering the continuous improvement of R & D strength and optimized channel layout, we expect the company to have a 2019?
Earnings per share for 2020 is 1.
34 yuan, maintain Buy-A investment rating, 6-month target price of 22.
44 yuan, corresponding to 22 times dynamic price-earnings ratio in 2019.
Risk warning: sharp rise in raw material prices and worsening competition