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Luolai Life (002293): Online business adjustment leads to income level 19 Looking forward to stabilization

Luolai Life (002293): Online business adjustment leads to income level 19 Looking forward to stabilization
This report reads: The company adjusted the rules for scheduled meetings and online brands. The short-term revenue growth rate has changed slightly. The company has been actively adjusted, its business has gradually recovered, and it continues to maintain an overweight rating. Investment points: Maintain 深圳桑拿网 overweight rating: As the company’s online channels are in the adjustment period, the EPS for 2019-2021 is reduced to 0.80 (-0.05), 0.90 (-0.06), 0.99 yuan.With reference to comparable companies (16 times for Mercury Home Textiles and 12 times for Fuanna), and considering that the company has a significant advantage in the home textile industry, it will give 18 times PE in 2019 and raise its target price to 14.40 yuan, continue to maintain overweight rating. Revenue growth has fluctuated in the short term, and profitability has improved.The company’s 2018 revenue was 48.1.3 billion, an increase of 3.24%; net profit 5.3.5 billion, an increase of 24.92%, performance is in line with expectations.In terms of different channels, the company’s online home textile revenue has maintained a low double-digit growth rate for 18 years, and has continued to grow slightly offline.Under the background of the company’s continuous improvement in product profitability, gross profit margin increased by 2.04pct to 45.50%; net margin increased by 1.6 points to 11.32%.1Q1 revenue 11.4.4 billion, down by 2.33%; net profit 1.4.5 billion, down 7.59%, revenue and profit growth fluctuated. In 2018, adjustments to the formulation rules and online brands were adjusted to form the basis for long-term development trends.In 18, the company adjusted franchisees to formulate conference rules, introduced a policy of return and exchange, coupled with strategic stocking in response to price increases, by the end of the first quarter of 19, the inventory increased by 25.16% to 13.01 billion.In addition, the company subdivided the online business of the Rollei and LOVO brands to achieve independent operation, which will affect the revenue growth rate. It is expected to adjust in the second half of the year and it is expected to resume double-digit growth. Continue to promote the “everyone spinning small home” strategy and adjust and complete the expected future revenue growth.In the 19th year of the recovery of terminal consumption, the company will continue to promote a multi-category and multi-channel strategy, and its product competitiveness will continue to increase. It is expected to achieve higher growth after the online brand adjustment is completed.After the merger of real estate, the promotion of home textile products sales, the company’s revenue growth rate in 19 attempts to stabilize and rebound. Risk Warning: The online business adjustment is less than expected, and the risk of raw material price increases.