Chenguang Stationery (603899): Annual Report Fu is expected to acquire Anshuo Pencil for internal and external synergy and continue to recommend
On the evening of March 25, Chenguang Stationery released its 2018 annual report.
In 2018, the company realized operating income of 85.
35 ppm, an increase of 34 in ten years.
26%; Net profit attributable to shareholders of listed companies.
07 million yuan, an increase of 27 in ten years.
25%; net profit attributable to shareholders of the listed company after deduction.
49 ppm, an increase of 37 in ten years.
By quarter, the company’s 2018Q1 / Q2 / Q3 / Q4 revenue was 18 respectively.
11 ‰, an increase of 30 in ten years.
25% / 41.
81% / 36.
86% / 29.
36%; net profit attributable to mothers is 2.
82 ppm, an increase of 23 in ten years.
22% / 38.
24% / 24.
02% / 27.
The company also announced at the same time that it intends to use 1.
U.S. $ 9.3 billion in own funds acquired 56% of Shanghai Anshuo’s equity. After the acquisition, Shanghai Anshuo will become the company’s controlling subsidiary.
Our analysis and judgment1. The traditional business has grown steadily and new businesses have continued to develop strength. In 2018, the company focused on “structuring and promoting growth”, focused on and deepened the terminal, comprehensively promoted four race tracks, continued to expand office direct sales, and accelerated developmentLarge retail stores, online sales continue to improve, product research and development is innovated, internal management is constantly optimized, channel upgrades, product upgrades, brand upgrades are multi-pronged, and business performance has grown steadily.
In terms of products: (1) Writing instruments realized operating income19.
46 ppm, a ten-year increase of 8.
82%, of which sales volume and sales unit price increased by 3 respectively.
64% and 5.
00%; gross margin is 34.
83%, an increase of 0 over the same period last year.
48 points; (2) Student stationery realized operating income of 18.
580,000 yuan, an increase of 13 in ten years.
79%, of which sales volume and unit price increased by 5 respectively.
92% and 7.43%; gross margin is 33.
50%, an increase of 1 over the same period last year.
89 points; (3) Office stationery realized operating income of 46.
1.3 billion, an increase of 62 in ten years.
82%, of which sales volume and unit price increased by 28 respectively.
24% and 26.
97%; gross margin is 18.
97%, an increase of 0 over the same period last year.
In terms of business: (1) Traditional core business: We estimate that the company’s traditional business realized operating income of approximately US $ 5.6 billion in 2018, an increase of approximately 16% per year compared with 2016.
(2) Chenguang Klip: Continue to maintain rapid growth and achieve operating income of 25 in 2018.
86 ‰, an increase of 106% in ten years, and realized a net profit of about 30 million yuan.
(3) Chenguang Living Museum / Jiumu Miscellaneous Agency: operating income in 20183.
0.6 million yuan, an increase of 49 in ten years.
15%, the report continued to reduce losses.
2. Traditional businesses continue to develop channels, channels and products. The company continues to focus on key terminals, promotes the improvement of single store quality, the upgrade of franchise stores and the optimization and upgrade of distribution centers, promotes the creation of boutique cultural and creative zones, office zones, children’s art zones, and enhances businessCircle share and expand market share.
As of the end of 2018, the company’s retail terminals exceeded 7.
60,000, a net increase of more than 1,000 in 2017.
According to the announcement, the company plans to take 1.
US $ 93.2 billion in its own funds to acquire 56% of Ashuo Stationery (Shanghai) Co., Ltd.
Shanghai Anshuo still has complementary competitive advantages in the wood pencil industry, with strong technical research and development capabilities. The MARCO brand it owns has a high brand awareness in the wood pencil industry, and it has abundant technical reserves in color lead and color.The product covers children, masses to professional lines.
After the acquisition of Shanghai Anshuo, Chenguangwen has the hope to achieve synergy in research and development, products and channels.
The target company, Shanghai Anshuo, has an overall estimate of 3.
4.5 billion, the consideration for the acquisition of 56% of the equity is 1.
932 million, corresponding to a PB of 1, which is reasonable.
3. Klipp maintained rapid growth, and major customer development continued to advance Klipp’s revenue in 201825.
8.6 billion, an increase of 106.
The company continued to strengthen major bidding projects and major customer development. In 18 years, it was shortlisted for government customers such as the central government procurement e-commerce platform, the State Administration of Taxation office supplies e-commerce platform, and the Shenzhen government e-commerce platform., Financial enterprise projects.
In addition, the company invested five central warehouses in five major regions across the country and set up new branches in Wuhan, Guangzhou, and Chengdu to improve customer service experience.
4. Comprehensive development of living hall and Jiumu Sundries Club, continuous exploration of large retail stores. The company actively builds the goods and service model of boutique cultural and creative stores, comprehensively develops Jiumu Sundries Club, and constantly optimizes the Chenguang Living Hall to provide scene-basedProduct solutions.
Income from Living Hall / Jiumu in 20183.
0.6 million yuan, an increase of 49 in ten years.
15%, report significant and significant loss reduction.
北京夜网 With regard to the Chenguang Living Museum, the company will continue to upgrade the store image, optimize the product portfolio and scene display, and improve the quality of single store operations.
In terms of Jiumu Sundries, the company will speed up the channel layout, strengthen the operation team construction, strengthen original development, and achieve dual upgrade of channels and products.
Beginning in the third quarter of 2018, the franchise has expanded and expanded from Jiangsu, Zhejiang and Shanghai to the whole country. At present, Jiumu Sundry Club has settled in 32 cities.
At the same time, the company continuously improves and adjusts its product categories, gradually forming the influence of the company’s products. By meeting the consumer demand for cultural and creative products brought about by consumption upgrades, the company further expands its market share in boutique cultural and creative industries and promotes the company’s brand upgrade.
5. The product structure upgrade continued to drive up the gross profit margin. In terms of profitability, the company’s comprehensive gross profit margin in 2018 was 25 in terms of profitability due to the continuous payment of selling expenses.
83%, rising by 0 every year.A score of 10 was mainly due to the upgrade of traditional business products and improvement of Klipp’s profitability.
Net sales margin was 9.
46%, a decrease of 0 every year.
By quarter, 2018Q1 / Q2 / Q3 / Q4 company sales gross profit margin was 27.
19% / 24.
11% / 25.
22% / 26.
78%, net sales margin was 10 respectively.
86% / 9.
01% / 10.
94% / 7.
34%, reporting performance The company’s profitability remained basically stable.
In terms of period expenses, the company’s selling expenses in 2018 were 9.
25%, an increase of 0 over the same period last year.
28pct, mainly due to the company’s increase in labor salary and labor services, housing rents, business promotion and channel construction costs.
Management expense accounting 5.
79%, a decrease of 0 compared with the same period last year.
24pct; financial costs are -0.
80 ppm, an increase of 182 in ten years.
81%, mainly due to exchange rate fluctuations and increased exchange gains and interest income.
6. Investment suggestion: The two wings of the company are advancing steadily. We expect the company’s total operating income to be 111 in 2019 and 2020 respectively.
6.7 billion, an increase of 30 each year.
66%; net profit attributable to mothers is 10 respectively.
4.6 billion, an increase of 25 each year.
48%, corresponding to the latest PE of 31.
7x, maintain “Buy” rating.