Lake Electric (603355): Expanding product lines for domestic sales, adjusting channel structure exports to maintain steady growth

Lake Electric (603355): Expanding product lines for domestic sales, adjusting channel structure exports to maintain steady growth
Investment Highlights Revenue declined in the first quarter, and net profit achieved double-digit growth. In 2018, the company achieved operating income of 58.64 ppm, a ten-year increase2.70%, achieving net profit attributable to shareholders of the parent company.23 ppm, an increase of 15 in ten years.73%, budget benefit 1.05 yuan.At the same time, the company announced that it would distribute cash dividends to every shareholder for every 10 shares2.20 yuan (including tax).The company achieved revenue of 14 in the first quarter.50,000 yuan, a ten-year average of 6.71%, achieving net profit attributable to shareholders of the parent company.86 ppm, an 18-year increase.32%, budget benefit 0.21 yuan. Exports maintained a steady growth trend. From the perspective of multi-brand strategy to broaden the distribution channels of product price segments, the company’s exports in 18 years realized revenue of 38.77 ppm, an increase of ten years.66% growth in profits, gradually realizing the gradual stabilization of the exchange rate of RMB against the US dollar against the US dollar, the advancement of Sino-US trade negotiations, and the stabilization of prices of major raw materials such as silicon steel and plastic granules ABS.In response, we expect the company’s export business risk to be reduced and maintain a steady growth trend.The company’s domestic sales revenue for 18 years 19.25 ppm, a 10-year increase3.96%.The company’s Lake brand adheres to the high-end, and retail demand has decreased in the context of intensified competition. At the same time, the performance of air purifiers and water purifiers has not been satisfactory.At the brand level, in March 2018, the company launched a new mid-end brand for the Internet and young consumer groups-Jimmy Lake Jimmy, forming a dual-brand strategy with the company’s main brand “Lake” to achieve comprehensive coverage of the high-end and mid-end vacuum cleaner marketIn terms of product size, the company developed e-commerce funds and commercial layouts based on the characteristics of Internet channels and commercial channels. The company also reached a strategic cooperation with Xiaomi. Lake Jimmy products were sold on the “Xiaomi Youpin” platform, further enriching the company’s products.Online and online sales scale.In terms of products, in 18 years the company’s main products represented by vacuum cleaners, air purifiers and water purifiers achieved environmental income of 40%.59 ppm, an increase of ten years.34%; garden tools have benefited from the expansion of the North American market and the average price increase brought by wireless upgrades, which has increased by 7 per year.71%; motor and kitchen 杭州夜生活网 appliances are separated by one level.30% and 7.88%. In the first quarter, the gross profit margin increased, and the profitability trend improved for 18 years.08 averages to 25.05%, net interest rate increased by 0 in the short term.81 up to 7.twenty one%.The company’s gross profit margin in the first quarter of 19 increased by 1.02 up to 24.72%, sales and management expense rates increased by 0.87 digits and 0.51 units.With the gradual stabilization of the exchange rate of RMB against USD and USD, the company’s financial expense ratio in the first quarter fell in the next few years with a high base.41 up to 1.13%, net interest rate increased by 1.28 up to 6.11%, overall, the company’s profitability trend is improving. Maintaining the “overweight” rating We expect the company’s revenue to be 63 in 2019-21.100 million, 69.2 ppm and 76.7 trillion, the annual growth rate is 7 respectively.5%, 9.8% and 10.8%, net profit attributable to mother 4.800 million, 5.400 million and 6.1 ppm, with annual growth rates of 14 each.5%, 11.1% and 12.7%, corresponding to EPS 1.21 yuan, 1.34 yuan and 1.51 yuan, corresponding to PE20.2 times, 18.2 times and 16.1x, maintaining the “overweight” rating. Risk Warning: The risk of sharp fluctuations in raw material prices; the downturn in the real estate market; increased industry competition; the risk of exchange rate changes