Fiyta A (000026) 2018 Annual Report Review: National Reform and Efficiency Improvement Awaits Terminal Recovery

Fiyta A (000026) 2018 Annual Report Review: National Reform and Efficiency Improvement Awaits Terminal Recovery
This report reads: In 2018, under the background of high-end consumer pressure, the national reform and efficiency improvement still led to a 31% increase in net profit. In 2019, terminal consumption recovered, national reform was further advanced, and operating efficiency continued to improve. Investment points: Investment advice: The company’s profit in quality improvement and efficiency will increase by 31% in 2018. Terminal consumption will gradually 武汉夜网论坛 stabilize in 2019. The company’s watch business is expected to take the lead to benefit and promote steady increase in profit.Considering the country’s reform and improving efficiency, the company’s EPS for 2019-2020 was slightly raised to 0.51 (+0.03) / 0.63 (+0.03) Yuan, EPS is expected to be 0 in 2021.76 yuan, maintaining a target price of 10.75 yuan, increase the level. 2018Q4 revenue growth rate, the improvement of watch profits led to a substantial increase in profits.The company achieved revenue of USD 3.4 billion in 2018, growing by 1 every year.6%, net profit attributable to mother 1.84 ppm, an increase of 31 in ten years.1%, EPS0.42 yuan, in line with expectations of performance forecast.Among them, Q4 revenue growth rate was -4%, consistent with the overall trend of high-end consumption Q4.At first glance, the watch business income was 20.90,000 yuan, an increase of 2 in ten years.51%, net profit of watch business is 0.9.3 billion, a 55% increase in ten years.The revenue of Fiyta and other self-owned watches was 11 trillion, which decreased by 3 every year.53%, mid-to-low-end watches continue to face competition. By 2019, multi-brand development will continue to enhance the competitiveness of their own brands. The results of the country’s reform and improvement are remarkable, and there is still room for the cost rate to go down.The company’s three expense ratios fell slightly to zero.18pct, the sales expense ratio is still down.In addition, in 2018, young people entered the battlefield, and asset impairment losses as a percentage of revenue have fallen sharply1.77pct to 0.1%.The above together promoted the company’s net profit margin to 5.41%, but up to 6 in company history.22% still have room to improve. State-owned enterprise reform is expected to deepen further, and terminal recovery is expected to enhance value return.Equity incentives were launched in 2018, which was the beginning of the company’s state-owned enterprise reform. Fiyta’s high-quality brand resources and watch agency channels are expected to rejuvenate.Consumption is picking up quarter-by-quarter in 2019. Businesses such as Hengli Watches are highly sensitive 杭州桑拿 to terminal demand. If consumption picks up and brings profits, it is estimated that the increase can be expected. Risk reminder: Economic growth is under pressure for high-end consumption growth, and the reform process of state-owned enterprises is less than expected.