Depth-Company-Qumei Home (603818): Mergers and Acquisitions Make Performance Short-term Pressure and Wait for Synergy to Appear

Depth * Company * Qumei Home (603818): Mergers and acquisitions make short-term pressure on performance wait for 成都桑拿网 synergy to appear

The company released the 2018 annual report and the 2019 first quarter report: the company achieved revenue of 28 in 2018.

900 million, +37 per year.

9%, net profit attributable to mother-59.06 million yuan, -124 for many years.

0%, attributable to non-net profit of -35.34 million yuan, a year of -115.

6%.

Among them, 18Q4 achieved revenue of 12.

0 million yuan, +80 for ten years.

9%, net profit attributable to mother -1.

50,000 yuan, at least -315.

4%, attributable to non-net profit -1.

200 million, previously -313.

1%.

The company achieved revenue of 10 in Q1 2019.

1 ‰, +154 per year.

8%, net profit attributable to mother is 11.79 million yuan, -57 for many years.

9%, deducted non-net profit of 2 million yuan, a year -92.

0%.

The main points of the support level are Ekornes’ consolidated revenue, and the performance of custom furniture is outstanding.

Ekornes completed the consolidation in August 18 and contributed revenue9.

3 ‰, net profit 87.04 million yuan, of which Stressless / IMG / Svane contributed revenue 7.

3/1.

4/0.

500 million, accounting for 25.

2% / 5.

0% / 1.

9%.

If the impact of consolidation is excluded, the company’s 18-year revenue will be extended by -6 due to the decline in the industry’s business climate and intensified competition.

4% to 19.

600 million, of which custom furniture / finished furniture / accessories and others were +40 respectively.

2% /-17.

9% /-35.

8% to 5.

9/11.

6/9.

600 million, accounting for 20.

5% / 40.

1% / 3.

3%.As the synergy between the company and Ekornes in the supply chain, production, channels, etc. is strengthened, sales accelerate accelerated volume.

The company actively promoted the sample of cabinet doors and stores, and basically completed the channel layout of the cabinet product line in your + living hall, with a cumulative growth rate of over 300% in 18 years, and began to test the wooden door business in direct channels.

The channel has expanded steadily, and the layout has begun to emerge.

As of 2018, the company’s B8 whole-house custom / you + life hall / home + life hall / direct store has a net increase of 79/30/45/7 to 306/649/60/21, covering Stressless / IMG / Svane The company has 3271/1713/410 stores and a total of 6,430 specialty stores, contributing 24 revenue.

800 million, an increase of 45 in five years.

1% of which are directly operated stores-8.

0% to 2.

100 million, dealership +53.

0% to 22.

800 million.

There are 1036 stores in the United States and 2269/1273/1422/430 in Ekornes’ European / Asia-Pacific / North American / Other regions, and the channel layout has been initially realized.

In addition, the company’s online / bulk / other channels have more than two years of revenue.

0% /-1.

2% / + 270.

0% to 0.

68/2.

1/0.

2.1 billion.

If divided by city level, the company’s revenue in first-tier / second-tier / third-tier cities in 2018 was 26 respectively.

6% / 33.

5% / 36.

8%, first-tier and second-tier cities dominate.

M & A expenses put pressure on performance in the short term.

The company’s gross profit margin will be +3 in 2018.

5% to 42.

4%, net interest rate is -13 per second.

7% to -2.

0%, 2019Q1 company gross margin +10.

4% to 46.

7%, net interest rate -5.

1% to 2.

0%, main reasons: 1) The consolidated Stressless / IMG gross margin is higher, which was 56 in 2018.

5% / 46.

0%, the scale effect strengthened to help the custom furniture business gross profit margin in 2018 half a year +1.

8% to 43.

0%; 2) Affected by the merger intermediary costs, loan interest, exchange gains and losses and other related costs incurred from the acquisition of Ekornes, and the Ekornes consolidation, the company’s sales / management / R & D / financial expense ratios increased by 7 in 2018.

9% / 5.

0% /-0.

2% / 5.

1% makes the period expense rate +17 per second.8% to 42.

2%, an increase of 7 in the first quarter of 2019.

8% / 6.

6% /-1.

7% / 2.

5% makes the period expense rate +15 per second.

1% to 42.

6%.

The synergy effect has been strengthened, the amortization of acquisition costs has been completed, and the profit level is expected to improve.

It is estimated that the company’s large home product matrix will continue to improve, and the synergy with Ekornes will be accelerated. In the short term, due to the consolidation of Ekornes, the performance will be under pressure, and the company’s profit forecast will be reduced.

44/0.

57/0.

69 yuan (previous forecast was 0.

80/0.

98 /-yuan), previously +468.

6% / 27.

7% / 21.

7%, corresponding to 2019PE18X, downgrade from buy to increase holdings.

The main risks facing rating The real estate boom continues to decline; Eknornes’ synergies fall short of expectations; debt pressure risks.