Fuanna (002327) 2018 Annual Report Review: Home Textiles’ Overall Overall Steady Online Growth Trend

Fuanna (002327) 2018 Annual Report Review: Home Textiles’ Overall Overall Steady Online Growth Trend

Core point of view revenue / net profit increased by 11 in 2018.

55% / 10.


The company’s online growth peaked, the offline channel structure continued to optimize, and the main home textile industry maintained steady growth.

Revise down the company’s EPS forecast for 2019/2020 to 0.


81 yuan, maintain “Buy” rating.

Revenue / net profit increased by 11 in 2018.

55% / 10.


The company achieved revenue in 201829.

180,000 yuan, an increase of 11 in ten years.

55%, net profit 5.

43 ppm, an increase of 10 in ten years.

11%, earnings per share are 0.

62 yuan, RMB dividends reached 0.

5 yuan, the dividend ratio reached about 80%.

Among them, the revenue of Q4 company increased by 7.

20% to 11.

5.5 billion yuan, net profit increased by -0.

09% to 2.

5.3 billion.

From a profit perspective, the company’s profit margin decreased by zero.

24PCT to 49.

82%; sales expense ratio increased by 1.

79PCT to 24.

03%, mainly due to the expansion of the household business; management / R & D / financial expense ratios increased by -0 respectively.




In addition, the increase in the company’s wealth management income has led to an increase in investment income of about 25 million; the company has been recognized by emerging companies as a result of a decline in yield2.

90PCTs, the overall reduction in net profit margin is 0.

24PCT to 18.


Online growth trend, offline channel structure continues to optimize.

(1) The company’s home textile business income increased by 10.

98% to 28.

1.9 billion.From the 杭州桑拿 perspective of split channels, ① online revenue is about 8.

300 million, an increase of about 16%, and revenue accounted for about 29%.

The fastest growth rate of online sales revenue has improved in 2017. Under the background of the weak overall performance of home textile e-commerce, the company’s online operation achieved the second single 11th performance of singles.

② The offline revenue is about US $ 2 billion, which is an increase of about 10% in one year. The offline direct franchise / joining / group buying channels have achieved revenue7.

84 billion / 10.

2.6 billion / 1.

8.9 billion.

The offline store structure optimization process continued to deepen. In 2018, the company’s offline channel specialty stores (counters) were about 1,310, of which 129 were added to franchise stores. The overall layout of first- and second-tier cities accounted for about 53%, and reached over 250 square meters.The proportion reached nearly 50%.

(2) The company’s furniture business income increased by 30.

54% to 9,971 million, the overall can still pass, the United States flagship store reached 12, with a total area of 1.


30,000 square meters.

The fastest increase in raw material stockpiling and online growth has increased the inventory turnover days, and the cash position remains good.

In 2018, the company’s home textile / furniture product inventory increased by 29.

05%, the overall inventory turnover days increased by 4.

4 days to 189.

6 days.

The increase of the company’s inventory is mainly due to: ① the company’s raw material preparations have increased; ② the inventory of finished products caused by the online growth rate.

The company’s total cash and cash equivalents have a net increase of 28.39 million yuan, and the overall cash position remains good. It is still expected to maintain a high dividend in 2019.

2019 is expected to grow steadily, with online and offline products segmented to operate.

(1) In the short-term offline plan in 2019, approximately 170 new franchisees and directly-operated stores will be added. Offline products will focus on quality, while deepening V + retail work and brand building. Promote the implementation of digitalization and refined management through store dataization.It is expected to achieve double-digit growth offline.

(2) Online will continue to exert its strength in 2019, with products focusing on cost-effectiveness. It is expected to continue to promote product refinement and structural optimization, and promote online channel construction through social platform growth.+.

risk warning.

1.Macroeconomic growth rate; 2.

2. The continuous growth rate of online textile growth rate; 3.

The development of Meijia’s custom furniture business failed to meet expectations.

Profit forecast and estimation.

Taking into account the company’s operating conditions in 2018, the online growth rate has improved, and the growth of the home textile industry has remained stable. The 2019/2020 EPS forecast of the company has been lowered to 0.


81 yuan (previous forecast was 0.


91 yuan), plus EPS forecast for 2021 is 0.

92 yuan, maintain “Buy” rating.