Three Trees (603737): Scale Effect Shows High Growth Performance Beyond Expectations
The company achieved operating income of 38 in the first three quarters of 2019.
3.9 billion (+67.
00%) to achieve net profit attributable to the parent 2.
7.2 billion (ten years +110.
80%) to achieve net profit after deduction.
310,000 yuan (+112 a year.
In the third quarter alone, the company achieved revenue of 16.
370,000 yuan (ten years +68.
17%, +4 from the previous quarter.
20%); realize net profit attributable to mother 1.
540,000 yuan (ten years +120.
33青岛夜网 %), net profit after deduction is 1.
4.9 billion (+118.
The effect of scale is beginning to appear.
With the expansion of the company’s sales volume, the effect of scale gradually emerged, and the three fees in the first three quarters totaled.
35 trillion (previously + 57%), three fee rate 30% (decade -1.
80pct); the company’s three fees in the third quarter4.
250 thousand yuan (ten years +56.
25%), three-fee rate of 26% (ten years -1.
Driven by the scale increase at the 2B end, although the company’s overall gross profit margin is 39.
09% (one year-0.
93pct) showing a downward trend, but the net interest rate started to rise7.
43% (ten years +1.
Home improvement wall paint fell at a high rate of growth.
The company’s “Rural Surrounding Cities Strategy” has achieved excellent results in third and fourth tier cities, and is currently expanding the development of first and second tier cities.
With the enhancement of the company’s brand power, the company’s 2C terminal is in a high-speed development stage, and the company’s home improvement wall paint production in the first three quarters.
90 inches (at least + 43%), with sales of 9.
62 Initially (at least + 43%), the average selling price was 6 due to product structure changes.
92 yuan / kg (one year -11.
96%), achieving revenue of 6.
6.6 billion yuan (+26 per year).
25%).In the third quarter alone, the output of home improvement wall paints has been realized.
36 inches (previously + 25%, -34% MoM), sales volume 3.
18 inches (previously + 29%, -29% MoM).
Engineering wall paint maintains a high growth rate.
Driven by the transformation of old communities and the increase in the proportion of hardcover rooms, the engineering wall paint segment continued to grow at a high speed. At the same time, the company expanded the supporting sales of interior wall engineering products, thereby increasing sales and lowering unit prices.
The company achieved an output of 38 in the first three quarters.
49% growth (at least + 71%), 36 sales.
38 inches (previously + 67%) with an average unit price of 5.
02 yuan / kg (one year -3.
83%), achieving revenue of 18.
260,000 yuan (ten years +61.
In the third quarter alone, the output of engineering wall paints reached 16.
32 inches (previously + 65%, +1 mom).
22%) and sales of 15.
57 inches (previously + 57%, +0 chain.
Increase earnings forecast and maintain investment rating: The company’s sales maintained rapid growth with prominent scale effects. It raised its profit forecast and expects to achieve net profit attributable 都市夜网to mothers in 2019-2021.
34 trillion, corresponding PE is 29/19/14 times, upgrade to “Buy” rating.
Risk reminder: The price of the product drops sharply, and the launch of new projects is less risk than expected.