Juewei Food (603517) 2018 Annual Report Review: Q4 Store Accelerates Steady Growth Expected

Juewei Food (603517) 2018 Annual Report Review: Q4 Store Accelerates Steady Growth Expected
Core point of view: The company released its 2018 annual report to achieve operating income43.700 million, an increase of 13.5%, net profit attributable to mother 6.400 million, an increase of 27.7%, realized profit 1.56 yuan.Q4 realized operating income11.0 billion, an increase of 14.7%, net profit attributable to mother 1.500 million, an increase of 23.6%. Q4 revenue grew steadily, and store opening speeded up.At the end of 18, the number of stores was 9,915, a net increase of 862, which is an improvement over the opening speed of 17 years. It is expected that high-potential energy stores will account for about 7%.Q4 revenue growth was 14.7%, in line with market expectations, it is expected that the net increase of stores will be close to 200, a substantial increase over the same period last year, the long-term store opening speed is low and high.Revenue growth in the fourth quarter came from a net increase in stores, and single-store revenue increased after the merger came from store upgrades. The growth rate is expected to be 3% to 5%.In 19, the goal is to increase the number of stores by about 1,000, and it is expected that the speed of opening stores will accelerate in the first half of the year. The gross profit margin was under pressure in the fourth quarter, and the expense ratio remained downward.In Q4, net profit attributable to mother increased by 23.6%, maintaining stable growth; net interest rate is 13.9%, a decrease from the previous month, but still maintained at a relatively high level.1) The gross profit margin dropped significantly.Q4 gross profit margin was 32.5%, down by 4.4 points, mainly due to the sharp rise in duck deputy prices such as duck intestines, duck tongues, and limited hedging of raw material inventory and product price increases.In 1919, duck deputy purchase price was the highest, and the pressure on raw material cost growth eased.2) Selling expenses maintained a downward trend.Q4 天津夜网 Selling expenses expenses 7.7%, down by 2.2pct, mainly due to the decrease in advertising costs compared with the same period of the previous year; considering the internal R & D costs, the management cost investment6.0%, down with 0.9 points. The “Delicious Duck Neck” keeps its store open steadily, and the “Pepper Flavor” goes from the region to the whole country.According to the company’s strategy, Juwei Duck Neck stores maintained a high net increase of 800-1200 stores, accelerated the development of high-potential energy stores, and promoted the development of online and offline integration. Online membership has reached more than 40 million, and revenue flexibility will continue to increase.In 19 years, the company began to launch a new brand “Jiaojiaoweiwei”, and will gradually open 200 stores in 6 provinces and cities,杭州桑拿 moving from the region to the whole country, and speeding up the opening of stores.In addition, the company has participated in multiple food chain and catering projects. When the project matures, it is expected to form a brand fission and form a new growth point. Earnings forecasts and investment advice.As a leader in leisure halogen products, the channel, production capacity and scale advantages are obvious. The expansion of stores and endogenous growth will increase the company’s performance, and new categories are steadily advancing, which is expected to become a new growth point.We expect the company’s 19-21 operating income to be 50.23/57.26/64.71 ppm with a growth rate of 15.0% / 14.0% / 13.0%; net profit is 7.97/9.62/11.37 trillion, with a growth rate of 24.4% / 20.8% / 18.1%; EPS is 1.94/2.35/2.77 yuan, corresponding to PE is 23/19 / 16X, maintaining the “recommended” level. Risk reminders: pressure on duck deputy prices, store opening speed is slower than expected, food safety issues.