Juewei Food (603517): Successfully closed in 18 years, expected to accelerate in 19 years

Juewei Food (603517): Successfully closed in 18 years, expected to accelerate in 19 years
2018 results are in line with expectations Juewei Food announced its 2018 results: operating income43.700 million, +13 in ten years.4%; net profit attributable to parent company 6.4 ‰, +27 a year.7%, in line with expectations.The 4Q single quarter income is +14 per year.7%, net profit attributable to mother +10 for ten years.6%.Basically consistent with the performance report.The company plans to distribute a cash dividend of 6 for every 10 shares.1 yuan (including tax), the dividend rate is 39%. Development trend Revenue in 19 years is expected to accelerate growth.At the end of 18, the company launched a total of 9,915 stores across the country. Earlier in the year 17, it added 862 stores, increasing the number of stores by +9.5%.The number of stores opened in 18 years was close to the lower limit of the guideline mainly due to the late 1Q Chinese New Year last year. Since 2Q18, the company’s revenue has resumed normal growth.We estimate that the company’s same-store growth in 18 years will be about 3%.In terms of category expansion, the company currently promotes Chuanchuanxiang products in Hunan, Jiangxi, Wuhan and other places, using two business models of single store and dual-brand stores. The company expects to have about 200-300 stores of Chuanchuanxiang in 19 years.According to grassroots research, we expect the store to open faster in 1Q19. The company’s 19-year number of stores is still 800-1200, but we expect the number to increase compared to 18 years. The same-store growth will help to benefit from the improvement of brand potential and the distribution network.Supply chain and other aspects have gradually increased while maintaining a 3-5% growth.In terms of mergers and acquisitions, the company’s annual report stated that it would consider participating in food chains and light catering to save momentum for future profit growth.We expect the company’s 19-year revenue and income to increase by about 15%, accelerating growth earlier than 18 years. It is expected 杭州夜生活网 that the cost pressure in 19 years will be manageable and the expense ratio will remain stable.The company’s gross profit margin in 2014 was 34.3% a year -1.5ppt, mainly because raw material costs have increased in 18 years.According to grassroots research, the prices of duck necks and duck by-products changed slightly in 19 years, but the scope was limited, but considering that the company has a certain inventory and the ability to reduce cost pressure through terminal price increases, we expect the gross profit margin in 19 years to remainKeeping stable; in 18 years due to the decline in the proportion of advertising costs, the sales expense ratio was -2.8ppt, comprehensively considering the company’s cost support for opening stores, we expect that the 19% increase in sales expense ratio will significantly reduce the 四川耍耍网 downward space, but it can maintain stability. The profit forecast is mainly due to the accelerated pace of opening stores in 19 years, and slightly adjusted 19/20 revenue forecasts +1.8% / + 1.8%, taking into account the cost pressure of raw materials and the pace of expense delivery, correspondingly adjusting the net profit forecast for mothers in 19/20 +1.6% / + 0.7%, corresponding to EPS 1.88/2.18 yuan. Estimates and recommendations The current budget corresponds to 24/21 times P / E in 19/20.Considering that the sector’s estimated center moves upwards, the target price is raised by 13% to 52.64 yuan, corresponding to 19/20 28/24 times P / E, the current price is 16% away from the target price, maintaining the recommended level. Risks Raw materials fluctuate, industry demand changes, industry competition intensifies, and food safety risks.