Vantage Holdings (002035): Revenue Expansion Narrows Mon, Profitability Continues to Improve

Vantage Holdings (002035): Revenue Expansion Narrows Mon, Profitability Continues to Improve

Event: The company released the 2018 annual report and the 2019 first quarter report: 1) The company achieved operating income of 60 in 2018.

95 ppm, a ten-year increase6.

4%, net profit attributable to mother 6.

770,000 yuan, an annual increase of 32.

9%, net profit of non-attributed mothers 6.

52 ppm, an increase of 32 in ten years.


The dividend plan is to pay 3 yuan for every 10 shares, the dividend rate is 38%, corresponding to a breakdown of 2 conversions.


2) The company achieved revenue of 14 in the quarter of 18Q4.

49 trillion, -12 a decade 杭州桑拿网 ago.

0%, net profit attributable to mother 2.

35 ppm, an increase of 18 years.


3) Public revenue in the first quarter of 19Q13.

31 ‰, ten years ago-6.

5%, net profit attributable to mother 1.

32 ppm, an increase of 14 in ten years.

8%, net of non-attributed net profit1.

28 ppm, an increase of 17 in ten years.


The revenue scale narrowed month-on-month, and the fundamentals entered the bottoming area: Judging from industry data, the retail sales volume and retail sales growth of Zhongyikang hoods in 2018 were -14% and -11%, respectively.The growth rates were -14% and -15%.

According to the company’s annual report data, in 2018 Vantage range hood and gas stove revenue were + 1% and -3%, respectively, showing significant industry levels.

In addition, the company’s new category has entered the growth stage. The company launched a new brand, Vantage Home, to begin the layout of large home furnishings, forming a strategic complement to Vantage and Black.

In terms of channels, the company’s offline, e-commerce, and engineering channel revenues were -3 in 2018 respectively.

2%, +25.

3%, +54.


The company actively explores new channels such as home improvement and building material chain stores, opening new growth points for future revenue.

Profitability continued to improve, sales in 19Q1, and management expense ratio increased: the company’s gross profit margin and net profit margin increased by +1 in the first quarter of 18Q4.

60, + 4.

29pct; 19Q1 company’s gross profit margin, net interest rate doubled +2 respectively.

77, +1.

87 points.

The company benefited from the improved product structure, and the decrease in raw material costs also improved profitability.

In order to improve the recovery of the income side, the company’s investment in sales expenses has increased. At the same time, the company’s strengthening of new product development and promotion helps maintain long-term and long-term competitiveness.

The operating net cash flow has improved significantly, and advance accounts have increased significantly: the company’s monetary funds + other current assets totaled 19Q1.

31 ppm, an increase of 28 in ten years.1%.

Total bills receivable and accounts 15.

68ppm, an annual increase of 96.


Accounts received in advance1.

420,000 yuan, reflecting a good future income growth potential.

In terms of turnover, the company’s 19Q1 inventory and accounts receivable turnover days increased by 15 each time.

95 days, 19.

In 92 days, the overall turnover days increased by 35.

In 87 days, turnover efficiency decreased.

In terms of cash flow, the company’s operating net cash flow in 20186.

29 ppm, an increase of 70 in ten years.


We believe that the significant improvement in the company’s operating net cash flow is mainly due to the change in the company’s supplier settlement method from cash payment to bills and other accounts payable, which reflects the company’s alternative bargaining power.

Investment suggestion: We believe that the main driving forces for future growth include: 1) continuous technological innovation in the category of smoke stoves to enhance product power and gain market share under the general trend of consumers’ increasing attention to brand consumer demand.

2) Continuously enriching product lines, water heaters have become new growth points, full listing of dishwashers and in-depth development of embedded products.

At the same time, the company actively promoted channel transformation in the short term of the industry boom. Dealer management was gradually refined, subdivided, front-end, and operational management capabilities improved.

We expect a net profit of 7-21 in 19-21.


9, 10.

2 ‰, an increase of 15 in ten years.

3%, 14.

1%, 14.

0%, corresponding estimates are 15 respectively.

5 times, 13.

6 times and 11.

9x, maintain “Buy” rating.

Risk reminder: the demand for real estate products will decrease in the post-cycle; industry competition will intensify, and new entrants will increase, leading to a decline in profits

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