Little Swan A (000418): Revenue growth rate to recover cash structured deposits exceeds 160 billion
Events: 1) Realization of income 236.
400 million, an increase of 10 in ten years.
53%; realized net profit attributable to mother 18.
6.2 billion, an annual increase of 23.
64%; 2) Revenue in the fourth quarter of 18Q62.
2 ‰, an increase of 15 in ten years.
02%; net profit attributable to mother 5.
15 ppm, an increase of 41 in ten years.
3) In 2018, profit distribution will no longer be carried out, bonus shares will not be distributed, and capital reserve will not be converted into capital.
The revenue growth rate improved from the end of the month, and the market share remained stable: 18Q4 revenue growth rate has improved significantly from Q3. From the industry online data, the sales volume of Midea brand increased by 2%.
9%, export volume increased by 11.
6%, the company’s domestic sales growth rate maintained a steady growth trend.
From Tmall and Taobao e-commerce data, sales of washing machines in Q4 Midea increased by +9.
7%, ± 20.
5%, a significant improvement from the previous quarter, the average washing machine price in the United States has increased significantly by +9.
Judging from the data shared by China Yikang, the sales of Little Swan and Midea’s brands for a total of 28 months have been terminated for 12 months.
3%, up by 1 each year.
Interest rates and exchange rates drive profit growth, and sales and management expense ratios are increased to: the company’s gross profit margin in 18 years and net profit margin at 26.
02%, +0 each year.
03pct; of which the gross profit margin in Q4 quarter and the net profit margin are +1 each year.
97, + 2.
80pct, gross margin improvement mainly benefited from the obvious improvement in product structure.
In terms of expense ratio, the company’s sales expense ratio increased by +0 in 2018.
75pct, total management + R & D expense rate +0 per year.
46pct, financial expense ratio ten years -1.
The company’s financial expenses have dropped significantly, significantly benefited from the serious 南京桑拿网 increase in revenue, and the company’s net interest income in 2018 was about 4.
7.7 billion, a sharp increase of 3 previously.
In addition, the company’s exchange gains in 2018 were 65.27 million yuan (a loss of 70.73 million yuan over the same period).
Cash in hand + structured deposits exceeded 16 billion, and operating net cash flow growth: the company’s monetary funds + other current assets at the end of 18
0 ppm, an increase of 22 per year.
300 million.We believe that the increase in the balance of structured deposits is an important reason for the company’s expected income and increased revenue. The company has more than US $ 16 billion in cash on hand (currency + structured deposits).
From the perspective of the turnover situation, the company’s inventory and accounts receivable turnover days fell several times respectively.
2 days, up 1.
In 2 days, the overall turnover efficiency improved slightly.
The company’s operating net cash flow in 201826.
25 ppm, an increase of 30 in ten years.
2%, of which net operating cash flow in Q4 quarter23.
3.9 billion, a sharp increase of 10 previously.
100 million, reflecting the company’s good ability to recover money from operations.
Investment suggestion: The company’s revenue growth rate will improve, but its market share will remain stable. Among them, the launch of new products such as drums and washing and drying machines will help the company to improve its product structure.
The depreciation of RMB in 2018 has improved the company’s exports and exchange rates.
Calculated from the conversion price and proportion, if the existing shareholders holding Midea Group exchange their shares for Little Swan A or Little Swan B and hold them until the completion of the conversion, they will receive a premium of 3% -4%, respectively.It means that the current Little Swan A and B shares have short-term discount arbitrage opportunities compared with Midea Group.
According to the company’s annual report, we expect the company’s revenue in 19-21 to be 248.
6 trillion, a growth rate of 5.
9%; Net profit 20.
9 trillion, a growth rate of 8.
The company’s current market value is 36 billion. If it deducts approximately 16 billion in cash in hand, it actually corresponds to about 10 times the PE of 19 years and maintains a buy rating.
Risk warning: real estate market, raw material price fluctuations, macroeconomic fluctuation risks.