Chenguang Stationery (603899) 2018 Annual Report Comments: Performance Meets Expectations Leading Steady Growth

The 2018 performance was in line with expectations, and the company’s revenue grew steadily in 2018.

3.5 billion, an increase of 34%; net profit attributable to mothers8.

07 million yuan, an increase of 27% in ten years.

The company changed its accounting estimation standard in 2018, affecting a net 杭州夜网 profit of 15.94 million yuan. If this effect is excluded, the company actually realizes net profit attributable to its mother7.

91 ppm, an increase of 24 in ten years.

74%, in line with expectations.

In Q18 / Q2 / Q3 / Q4, the quarterly revenue increased by 30% / 42% / 37% / 29%, and net profit attributable to mothers increased by 23% / 38% / 24% / 27% over the long term.

In addition, the company plans to distribute a cash dividend of 3 per 10 shares.

00 yuan.

Due to the increase in the proportion of office stationery business, the company’s gross profit margin was basically flat in 18 years, and its net profit margin dropped by zero.

4p.

p.

To 9.

46%.

Accounts receivable turnover increased by 73%, mainly due to structural reasons for the increase in the proportion of Colepu’s business.

The office business continued to grow at a high rate. Traditional business steadily advanced by revenue, and writing instruments achieved revenue19.

46 trillion, with an increase of 8.

8%, gross margin increased slightly; student stationery realized income 18.

580,000 yuan, an increase of 13.

8%, gross margin increased by 1.

89p

p.

; Office business is growing by 62 per year.

8% to 46.

1.3 billion, gross profit margin was flat, of which Klippu achieved revenue of 25.

8.6 billion, an increase of 106%; in terms of business, new business (Chenguang Klippu, Chenguang Technology, Chenguang Life Museum) increased by 90%, and traditional core business increased by 16%.

With the acquisition of Anshuo, the Mark Pencil brand synergy expects the company to take 1.

Acquired 56% of Shanghai Anshuo’s equity with US $ 9.3 billion in own funds. Anshuo owns the Mark Pencil (Macro) brand. After the acquisition, it and Chenguang tried to play a synergistic effect on products and channels. By increasing capacity utilization, Chenguang’s domestic sales channels were sharedTo improve the profitability of Anshuo.

The overall acquisition is estimated to correspond to a PB of 1, which is reasonable.

Risk Warning: 1.

The B-end market is fiercely competitive and the growth rate of Klipp; 2.

2. The boutique cultural and creative flagship store turned losses faster than expected; 3.

Competition of international domestic brands in traditional businesses, squeezing growth space; 4.

Systemic risk in the market.

Investment suggestion: Grasp the growth period of cultural and creative leaders and maintain the “overweight” level.

We expect the company’s net profit attributable to its parent to be USD 10/13 / 1.5 billion in 2019-2021, with a ten-year growth rate 无锡桑拿网 of 29/22/20%; diluted EPS = 1.

13/1.

37/1.
64 yuan, currently corresponding to the corresponding PE = 32/27 / 22x.
The company’s “one body and two wings” opens up room for growth, and its performance is steadily growing. It is optimistic about the long-term growth potential of leading brands, corresponding to 37 times PE in 19 years, a reasonable valuation of 42 yuan, and maintaining an “overweight” rating.