Jiuyang (002242): Profitability of new product listings improved

Event: Jiuyang shares announced the third quarter report of 2019.

Company 2019 1?
Revenue in September was 62.

500 million, a year-on-year increase of +15.

0%; achieve performance 6.

200 million, a year-on-year increase of +8.


Converted to a single quarter of 2019Q3 to achieve revenue 20.

700 million, a year-on-year increase of +15.

0%; achieve performance 2.

100 million, a year-on-year increase of +6.


We believe that Jiuyang’s business is stable and its product structure is gradually optimized, which is optimistic about the company’s long-term development.

Q3 revenue has maintained rapid growth: Since this year, the company has achieved a 15% increase in revenue for three consecutive quarters. We believe that the reasons for the improvement of Jiuyang’s operations are: 1) The channel adjustment has gradually become effective, and it is estimated that 1?
In September, the company’s offline sales increased positively.

2) The sales of broken wall cooking machines increased rapidly. It is estimated that the growth rate of the company’s broken wall cooking machines in Q3 2019 will be approximately 20%.

In our analysis, considering that the company is actively promoting channel sinking and expanding new categories, it is expected that Jiuyang’s future revenue end is committed to maintaining rapid growth.

Product structure adjustment and gross margin improvement: According to the announcement, Jiuyang’s single quarter gross profit margin for 2019Q3 was 32.

4%, ten years +1.


In our opinion, the launch of new products by Q3, coupled with the increase in raw material prices, has improved profitability.

According to the announcement, in 2019Q3, Jiuyang launched new products such as “Do not wash wall breaking machine” Y1, steam rice cooker S3 and other new products, and achieved certain sales results.

The third quarter’s operating cash flow increased significantly: the company’s net operating cash flow in the third quarter of 2019 was 7.

500 million, an increase of 5 every year.

600 million.

We believe that Q3 Jiuyang’s cash flow increased due to the sales of goods and the provision of labor services.

500 million.

In addition, the company’s bargaining power of upstream suppliers increased. At the end of the third quarter, Jiuyang’s 无锡桑拿网 bills and accounts payable increased significantly.

800 million.

Investment suggestion: Jiuyang actively expands product categories, optimizes product structure, and improves profitability. We expect the company’s future performance to maintain rapid growth.

What do we expect the company to do in 2019?
The EPS in 2020 will be 1.


21 yuan, covering Buy-A investment rating for the first time, with a 6-month target price of 26.

62 yuan, corresponding to 22 times the dynamic price-earnings ratio in 2020.

Risk warning: the price of raw materials may continue to increase, the risk of exchange rate changes