Yuanlong Yatu (002878) 2018 Annual Report & 2019 First Quarterly Report Review: The sales growth of the leading products in sales promotion is impressive, and the Expo will help the franchise business development
Company dynamics matter 1, the company announced the 2018 annual report, the company achieved revenue 10 in 2018.
USD 5.2 billion, an annual increase of 28.
36%; net profit attributable to mother is 9354.
470,000 yuan, an annual increase of 30.
2. The company announced the first quarter report of 2019, and the revenue in 2019Q1 was 3.
07 million yuan, an annual increase of 50.
90%; net profit attributable to mother is 2524.
610,000 yuan, an annual increase of 26.
Matters Comment The reorganization of the promotional items industry is reorganizing, and the concentration tends to increase the company’s main military promotional items supply and related integrated marketing services.
Providing promotional items is one of the common marketing methods for enterprises. With marketing and advertising indicators such as discounts, it can effectively increase costs and help consume inventory without damaging the price system. When facing economic downward pressure, the supply of promotional items and related servicesFully certain corrosion resistance.
As the requirements for the quality of promotional items and the design of promotional solutions gradually increase, the promotional item industry is gradually moving from decentralized to centralized.
The company is a leader in the domestic promotional products industry. It has comparative advantages in product design, supplier management, and advancement of funds. However, its current market share is less than 1%, and its potential for future development cannot be underestimated.
The company’s income has continued to grow, equity incentives, and rent-influenced expense ratios. The company’s revenue in 2018 increased by 28.
36%, a growth rate higher than the same period last year.
Comprehensive gross profit margin 24.
34%, a slight increase of 0 a year.
Selling expenses and administrative expenses increased by more than 40%. The increase in expenses was mainly due to the amortization of equity incentive expenses and the rental expenses arising from the expansion of the Beijing Operation Center.
Reducing the impact of this expense, the company’s net profit growth rate will increase to 56.
Promotional products business grew well, new customers opened up and the company’s promotional products business achieved revenue8.
33 ppm, an increase of 18 in ten years.
84%, accounting for 79 of the company’s total revenue.
18%; revenue from promotional services business1.
40,000 yuan, an increase of 25 in ten years.
59%, accounting for 13 of the company’s total revenue.
Providing promotional items and related services to large corporate customers is the company’s core business. In 2018, the company’s top ten customers contributed revenue6.
7.6 billion, accounting for 81% of revenue.
22%, an increase of 1 from last year.
The company has a stable cooperative relationship with core customers for more than 5 years.
In 2018, the company has achieved great success in the development of major customers. The company has successfully obtained the supplier qualifications of Coca-Cola, L’Oreal, Feihe Milk Powder, Bank of China, Industrial and Commercial Bank of China, CITIC Bank, Ping An of China, Agricultural Bank of China, and newly developed large customersThe number is the highest in all years.
Since it takes 2-3 years to grow from newly acquired supplier qualification to becoming a core promotional product supplier, the addition of new customers has laid a good foundation for the future development of the company’s promotional product business.
Acquired Qianma Network and entered the new media marketing segment In November 2018, the company completed the acquisition and consolidation of 60% equity in Qianma Network.
Qianma Networks is mainly engaged in Internet new media marketing services. It has obvious synergies with the company’s reorganization of business in terms of customer resources, and also enables the company to provide customers with integrated marketing services online and offline in the future.
Qianma Network realized deduction of non-net profit of 3498 in 2018.
89 yuan, performance completion rate of 109.
Qianma Networks promises that the non-deduction net profit for 2019-2020 will be no less than 40 million yuan and 50 million yuan.
Major exhibitions are overweight, and the company’s franchised souvenir business is expected to achieve high growth. The company has qualified as a souvenir licensed manufacturer and retailer of the 2019 Beijing World Horticultural Expo and the 2022 Beijing Winter Olympics.Greatly improved early.
The company is also expected to combine the franchised souvenir business with the promotional items business, and provide customers with special promotional items with a spotted souvenir logo, which will drive the company’s market share of promotional items.
The first quarter reported high growth in revenue, and the increase in index costs affected the growth 杭州夜网论坛 rate of net profit. The company achieved revenue in 2019Q13.
07 million yuan, an increase of 50 in ten years.
The increase in revenue was mainly due to the increase in revenues from the consolidation of Qianma Network and core customers.
Due to the increase in the company’s income, the increase in capital requirements has led to an increase in the company’s current debt interest expenses, while the current government subsidy has decreased. At the same time, the company’s net profit growth in the first quarter of 2011 has been slower than revenue growth.
Profit forecast and estimation We are optimistic about the company as a leader in promotional products, and its market share is expected to continue to increase steadily in the future.
Benefiting from the upcoming Garden Expo conference, the growth in sales of licensed souvenirs will further boost the company’s performance.
It is estimated that the net profit attributable to shareholders of the parent company in 2019-2021 will be 1.
4.3 billion, 1.
8 billion and 2.
2.7 billion; EPS is 1.
09 yuan, 1.
38 yuan and 1.
74 yuan, corresponding to PE is 27.
08 and 17.
54 times, given a “cautious increase” rating.
Risks remind that new business integration is less than expected, the risk of loss of core customers, the expansion of core customer marketing expansion reduces risks, and industry competition intensifies