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Gu Jia Household (603816): A large proportion of the president’s holdings highlight the future confidence

Gu Jia Household (603816): A large proportion of the president’s holdings highlight the future confidence
Company announcement: The director and president of the company, Mr. Li Donglai, plans to increase the shareholding of the company’s shares not less than 100 million yuan but not more than 200 million US dollars within one year from the disclosure date, and the increase price should not be more than 55 yuan / share. The large proportion of the president’s holdings reflects his confidence in the company’s long-term development.Prior to this increase, Li Donglai always directly and indirectly held 1027 shares of the company.110,000 shares, accounting for 1 share capital.71%.If the current closing price (39.63 yuan / share) budget is expected to increase holdings of 252.33-504.670,000 shares, the proportion of total equity increased by 0.42% -0.84%.We believe that this large increase in shareholding reflects the company’s president’s confidence in the long-term performance development and recognition of the company’s value, which is beneficial to unify the interests of executives and the company. The company’s recent endogenous performance has accelerated significantly. We estimate that after excluding the impact of mergers and acquisitions, endogenous revenue in 19Q1-3 increased slightly, of which the endogenous growth in the third and third quarters was about 5-10% (vs. 19H1 only 0.57%), mainly due to: 1) 816 and other marketing activities have been carried out effectively, and domestic sales growth has picked up (about 15% in the third quarter).The company’s sales momentum was strong during the Double Eleven in 2019, according to 7.51 ppm, Q4 is expected to continue to maintain good growth; 2) The decline in export sales has narrowed, mainly due to the company’s overseas production capacity layout, key customer strategy advancement, and improvement in supply chain efficiency.It is expected that foreign purchase orders will be generated casually by 2020, and the export growth rate will resume. Revenue side: the continuous development of multi-category, multi-series, and multi-brand expansion development, and each business segment achieved steady growth.The marketing activities of the company were successful in 19Q3. We expect the growth rate of endogenous domestic sales to be about 15%. At the end of the 19Q3 period, the company’s advance receipts will increase 66%, indicating that the trend of terminal orders is improving. We expect 19Q4 revenue to continue to maintain a rapid growth rate.  1) Multi-category development: As the company’s traditional main business, the sofa business has a strong customer base and brand attributes, maintaining steady growth.According to the company’s multi-brand development strategy, meet the needs of different consumer groups.2) Continue to promote channel construction: In 2019, the company has optimized the store opening process, combined with a unified construction team, resource integration, and shortened the store opening cycle.Channel stores pay more attention to quality improvement, and the net opening speed is slightly distorted. It is expected that the store opening speed will resume in 2020.3) Optimization of management structure: The company’s management team keeps improving and meets the needs of market development, and its talent reserve and organizational execution are leading.In the second half of 2018, the company gradually changed from the original business unit system to a regional marketing center model. The team building idea is clear, which is a good team foundation for the company’s long-term strategic development. The company’s internal management adjustment in 2019 is expected to be gradually realized.1) Supply chain management optimization: The company continuously optimizes the logistics and transportation system and storage management system, digitizing the delivery plan, logistics freight calculation, 深圳桑拿洗浴网 transportation and logistics, and gradually delivering the cycle.In terms of warehousing, an offline container loading model was established, and demand management, requisition models, and procurement and return processes were streamlined and optimized to ensure that the company reduced warehousing and logistics costs and increased inventory turnover in the development of multiple categories. Inventory turnover costs4.77 times, 0 in a year.08 times.2) Exploration of regional retail centers: At present, about 60% of dealers cover information systems, and progress will be seen in early 2019. It is expected that with the production of Huanggang in the future, it will radiate North and Central China, extend the delivery cycle, and improve warehousing and logistics services. The large proportion of CEOs increased their holdings, 北京桑拿洗浴保健 reflecting long-term development confidence.Actively develop categories, the leading level of the software home furnishing industry is remarkable, a series of supply chains continue to be optimized, and the company has the foundation to steadily contribute to the large home furnishing market.The company’s main product sofas benefit from the improvement of industry concentration; gradually promote the gradual expansion of category expansion to create a superior product matrix; the channel expansion is continuously strengthened; the company will continue to promote O2O integration to realize the layout of new retail channels.The initial incentive was granted for the first time, and the convertible bonds successfully raised funds to promote the sustainable development of the company’s business.The expansion of production capacity has been gradual and gradual, and the energy storage large home strategy module.The company has gradually repurchased 398.320,000 shares, accounting for 0 of the total share capital.66%.We maintain the company’s EPS to 2019-2021.95 yuan, 2.28 yuan, 2.The profit forecast of 66 yuan, the net profit attributable to the mother is 11.75/13.70/16.02 trillion, the growth rate was 18.8% / 16.6% / 16.9% currently total (40.(85 yuan) corresponding to 2019, 2021 PE is 21, 18, 15 times, benefiting from the increased concentration of leading household industry, the company’s incentive mechanism is in place, and the endogenous growth logic is improving.We are optimistic about the company’s medium- and long-term development prospects, and look forward to the company’s various categories to develop a beautiful layout in the home sector to maintain an increase in holdings.