Sankeshu (603737) semi-annual report comment: Home improvement projects continue to achieve high growth

Sankeshu (603737) semi-annual report comment: Home improvement projects continue to achieve high growth

Event: The company released its semi-annual report and realized operating income in 2019H122.

20,000 yuan, an increase of 66 in ten years.

14%; net profit attributable to mother 1.

180,000 yuan, an increase of 99 in ten years.

66%, net profit after deduction is 0.

820,000 yuan, an increase of 103 in ten years.

79%; comprehensive gross profit margin and net profit margin are 38.

93%, 5.


Among them, the company’s total revenue in the second quarter was 15.

710,000 yuan, an increase of 67 in ten years.

77%, net profit attributable to mother 1.

20 ppm, an increase of 79 in ten years.

twenty three%.

Comments: C + B end joint efforts, operating income increased significantly.

The growth rate of home improvement improved in 18 years, mainly in optimizing dealers and opening new dealers to first- and second-tier cities. This layout was rewarded in 19 years, and sales of home improvement wall paint increased by 51.


The engineering company continued to make efforts, with sales increasing by 76 each year.

38%, large real estate customers and engineering end distributors are in place.

The old reform this year has become an important milestone for the government. It is a major livelihood project and development project. The renovation of old communities will be fully promoted. The demand for repainting of building exterior walls is expected to increase, which will benefit the company’s engineering business.

In addition, the waterproof business broke through to the company’s main operating data announcement for the first time, and waterproof membranes contributed 1 in the first half of the year.

300 million revenue, through the release of the company’s own production capacity, is expected to form a synergy with engineering-end coatings and become a new growth point.

The effect of scale appears and the net interest rate increases.

The gross profit margin of the product decreased slightly, falling by 2 every year.

There are 13 single products, with a certain range of product prices, and the product structure of home improvement has been adjusted, and the average price in the first half of the year dropped by 17.

14%, the increase in the proportion of refined decoration has also reduced the price of tooling paint, but the overall cost has also decreased, the main raw material emulsion, titanium dioxide replaced 14 respectively.

86%, 7.

69%, gross margin is basically stable.

Costs were properly controlled, and management costs increased for ten years.

51%, which is far lower than the growth rate of the business. The company expanded its staff in 18 years, intending to lay out ahead of time, which led to an increase in management costs in 18 years.With the increase of the waterproof business, the scale effect becomes more and more obvious, and the net margin gradually increases.

The industry has a lot of room to accelerate closing the gap with overseas companies.

In 19 years, the domestic economy was under great pressure and foreign trade wars were repeated. In the first half of the year, the total output of the Chinese coatings industry was 964.

At the beginning of the 45 years, the market growth in the past ten years was 4.

8% to maintain strength.

In recent years, environmental protection indicators have been continuously improved, and small companies that have failed to meet the standards have continuously withdrawn from 杭州桑拿网 the market, providing the industry with a very low concentration of the industry the opportunity to increase the concentration of the leading players.

Looking at the benchmarking industry leader for a long time, Nippon China has 7,900 employees, 18 years of revenue reached 17.5 billion yuan, per capita income of 2.22 million yuan, Sanshu 18 years of per capita income of 920,000 yuan, per capita income still has a lot of room for growth.

In the short term, the coming of the “Golden Nine Silver and Ten Years” peak season will drive good performance in the second half of the year. Various waterproof businesses are expected to start contributing and the company is expected to continue to maintain high growth.
Investment suggestion: Thanks to the reduction of the scale effect cost rate and the gradual release of the waterproof business, the net profit attributable to the mother in 19-21 will be 2.
87, 3.

81, 5.

11 trillion is raised to 3.

15, 4.

28, 5.

8.3 billion, with EPS of 1.

69, 2.

29, 3.

13 yuan, the corresponding PE is 36X, 26X, 19X times, maintaining the “buy” level.

Risk warning: the price of raw materials increases; the expansion of dealers and large real estate customers is less than expected.