Baby-friendly Room (603214) 2019 Third Quarterly Report Review: Profitability Continued to Improve Performance A little bit More Than Expected

Baby-friendly Room (603214) 2019 Third Quarterly Report Review: Profitability Continued to Improve Performance A little bit More Than Expected

Revenue grew steadily, and the performance slightly exceeded expectations. The company achieved operating income in the first three quarters.

41 ppm, an increase of 14 in ten years.

52%; net profit attributable to mother 0.

8.7 billion, an annual increase of 32.

95%, net profit after deduction is 0.

73 ppm, an increase of 33 in ten years.

75%.

In the third quarter of 19, the company achieved operating income5.

62 ppm, an increase of 11 in ten years.

68%; net profit attributable to mother 0.

25 ppm, an increase of 49 in ten years.

46%, net profit after deduction is 0.

22 ppm, an increase of 56 in ten years.

62%.

The company’s performance was slightly higher than expected, mainly due to the increase in gross profit margin and overall profitability.

Gross profit margin continued to increase, profitability increased 19Q3 The company’s gross profit margin was 30.

97%, an increase of 3 per year.

85 pct; gross profit margin of milk powder increased by 3.

59pct with action circuit breaker.

Increase in total expense ratio by 2.

45pct, of which the selling expense ratio is 21.

32%, rising by 1 every year.

19 points; management expense ratio 4.

10%, increase by 2 every year.

01pct; financial expense ratio -0.

50%, a decline of 0 every year.

75 points.

The net interest rate is 4.

80%, increase by 1 every year.

19 points.

21 new stores opened in 3Q, in line with expectations. 21 new stores opened in 3Q19, 39 new stores opened in 1Q-3Q, 14 closed, and 25 stores opened.

Among them, Fujian, Chongqing and other new districts and sub-new districts opened 3Q stores in 3 and 2 respectively.

As of 3Q19, the company has a total of 266 directly operated stores.

33 stores have been signed for opening.

E-commerce + private brand exploration speeded up 19H1, and the company’s e-commerce platform achieved 0 sales revenue.

32 trillion, accounting for 2 of operating income.

68%, revenue increased by 87.
.
11%, the company’s target APP sales reached 1 billion.
19H1, the company’s own brand merchandise sales1.

0.9 billion, accounting for 9% of merchandise sales.

82%, an increase of 36 per year.

33%.

The risk reminds the company that the same store growth rate reduces the risk; the country’s population increase 北京夜生活网 will increase.

Regional mother-to-child chain leader, maintaining “overweight” rating company is the regional mother-to-child chain leader in East China, establishing key regional breakthrough strategies in East China, Sichuan and Chongqing, and South China.

The company’s expansion has accelerated in recent years, and it is expected to open 300 stores in the next three years.

The company seeks opportunities in the industry chain for mergers and acquisitions and intends to make a breakthrough in the field of maternal and infant services.

We maintain our profit forecast and expect net profit for 2019-211.

51/1.

94/2.

51 ppm, CAGR 25 revenue / profit 2019-2021.

96/27.

95%, maintaining a reasonable estimate of 44.

67-47.

65 yuan (corresponding to 2020PE 23-25X), maintaining the “overweight” level.