Rongtai Health (603579) 2019 Third Quarterly Report Review: Q3 export sales pick up and domestic sales are generally weak due to the overall weak consumption of durable goods

Rongtai Health (603579) 2019 Third Quarterly Report Review: Q3 export sales pick up and domestic sales are generally weak due to the overall weak consumption of durable goods
Key investment events: Company announcement: 1) Revenue from 19Q1-Q316.29 ppm, a decrease of 7 per year.32%, of which, Q1 / Q2 / Q3 growth rates were -15.22% /-7.41% / 1.93%; net profit attributable to mother 2.09 million yuan, an increase of 13 in ten years.69%; deduct non-attributed net profit1.5.7 billion, down 22 each year.54%, of which, Q1 / Q2 / Q3 growth rates were -26.25% /-41.54% / 13.32%; net cash flow from operations 3.150 euros.44%, earnings per share is 1.50 yuan / share.2) The establishment of the board of directors has passed the “Election of the Chairman of the Third Board of Directors of the Company” and so on. Comments: Q3 revenue growth has turned positive. It is expected that the export sales will improve at a low base last year, and the experiential massage service will continue to shrink.The company’s revenue from 19Q1-Q3 was 16.2.9 billion, down 7 every year.32%, of which, Q1 / Q2 / Q3 growth rates were -15.22% /-7.41% / 1.93%; domestic sales at the time of interim report 5.7 ppm / -10.85%, export 5.2 ppm / -11.77%, domestic sales Q3 is expected to improve, mainly due to the company’s first half of this year, the introduction of new high cost-effective yoga chair market feedback is good, but this year the overall consumption of durable goods is sluggish, the improvement is expected to be limited, external demand, especially the Korean market last year, the low base and the companyThere has been an improvement under the background of product upgrades. The company gradually adjusted the development strategy of shared massage chairs, and the disposal of shared massage chairs in some areas led to a decline in related revenue. Q3 is still measuring revenue of 16.85 million yuan. It is expected that Q3 will continue to dispose of shared massage chairs. The increase in rent of shared massage chairs and the impact of rising export costs have led to a continued decline in gross profit margins, a reduction in share-based payment expenses, but an increase in research and development expenses and expansion of sales expansion, resulting in little change in the overall expense ratio.In the third quarter of 19, gross profit margin decreased due to the increase in rent of shared massage chairs and the rise in export costs1.79pct, but the older 19H1 places 4.The 82pct narrowed significantly, and the gross profit margin of the 19H1 massage chair / experienced massage service decreased by 1.29 points and 35.77pct, domestic / external gross margins were reduced by 2 respectively.83pct and 7.14pct; due to the company ‘s fair incentive unlocking conditions, the share payment fee has not been reduced, but new product launches have increased R & D expenses, and the total expense ratio in 19Q3 has dropped by 0.02pct; The share of gains from disposal of massage chairs and losses from foreign exchange hedging have led to a significant increase in performance compared to the same period last year. A number of heavy new products were launched this year, and the future growth of domestic sales is promising. The entry-level massage chair brand “Momoda” has opened the low-end market.The company has launched this year’s heavyweight yoga chairs and pricing 3 in the mid-to-30,000 market.The Gemini and space capsule massage chairs that will be launched in the 50-40,000 high-end market will be subject to short-term market lack of confidence in the consumption of large amounts of patient products, but the domestic massage chair market has a long-term outlook, and the domestic sales are expected to improve. At the same time, “Momo Da”By entering the public vision through shared massage and positioning the entry-level consumer market, the company has made it a relaxed and fashionable brand. With appropriate pricing and design, it targets young consumers and gains a competitive advantage in the massage chair market below millimeters. The cultivation of the domestic massage chair market is still underway, and there is huge room for improvement in penetration.Absolutely, residents’ concerns about health are constantly increasing and the rapid development of shared massage chairs has promoted a good nurturing role in the domestic massage chair market. However, the current penetration rate of the domestic massage chair market is less than 1%, which is significantly higher than markets such as Japan and South Korea (8-10%), It can afford the space for 北京夜网 improvement, but the market is not overnight, and the demand is constantly cultivated to allow more people to accept massage chairs. Profit forecast and investment rating: After the rapid growth of shared massage chairs for several consecutive years, the company has suffered from short-term changes in the internal consumer market environment and intensified competition, which have affected the income shift. However, the scale has improved quarter by quarter, and it will continue to benefit from the income of domestic residents in the future.Consumption demand for high-quality massage machines brought about by rising levels and increased awareness of health and well-being can be expected to grow; domestic sales have gradually become the core of future growth, shared services have entered a stage of rational management, and more 杭州桑拿网 markets have been gradually cultivated and “Momoda” promotedProduct services, the company ‘s massage chair technology, brand and channel advantages are significant. At the same time, it has developed research and development advantages, and has continuously introduced new massage equipment products and new service methods.Is 1.86/2.26/2.67 yuan, the closing price corresponding to PE on October 28 was 15/12/10 times, maintaining the level of “prudent increase”. Risk reminders: the proportion of single customers is too high; new product R & D and sales are lower than expected; Momo operation is lower than expected; domestic and overseas markets massage chair sales and development are lower than expected; exchange loss risk; trade friction exacerbates risk.

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