Jack Stocks (603337): Industry bottoms out and warms up
Jack Co. released an interim report and achieved revenue of 20 in the first half of the year.
500 million US dollars, unchanged from the same period last year, and realized net profit attributable to shareholders of listed companies1.
9.2 billion, down 12 every year.
9%, deducting non-attribution to net profit1.
6.2 billion, a decline of 22 per year.
2%, performance is basically in line with previous expectations.
Affected by Sino-US trade frictions, industry adjustments, and other factors, industry demand was noticeable in the second quarter. However, Jack remained stable in terms of revenue, increased market share, and further consolidated the industry leader. It is highly recommended.
Income remains stable.
In terms of specific products, the income of industrial sewing machines was 17.
600 million, down by 1 every year.
2%; Revenue from cutting bed and spreader 2.
2.6 billion, down 5 every year.
9%; the revenue of the smart sewing segment was 67.48 million yuan, an annual increase of 109%.
In the second quarter, the overseas revenue of industrial sewing machines increased, while the number of domestic parts increased significantly, and the overseas tailor bed business improved, resulting in a decrease in overall revenue of tailor beds.
9%, the growth of smart sewing segment revenue growth is mainly due to the consolidation of VBM, the revenue of Maika has been slightly inclined.
Gross margin 26.
9% remained stable, cutting bed, intelligent sewing decreased.
Overall gross margin for the first half of the year was 26.
9%, a decrease of 0 compared with the same period last year.
5pct, of which industrial sewing machine gross margin is 24.
7%, which is basically the same as the same period of the previous year, and the gross profit margin of cutting and spreading machines is 42.
3%, down 2 from the same period last year.
2pct. The decline in the gross profit margin of tailor beds and spreaders is mainly due to the increase in the proportion of economical E80 tailor bed products. The expansion of the tailor bed subsidiary Kabenma achieved a net profit of 49.17 million yuan in the first half of this year.
9%, a decrease of 14 over the same period last year.
4%, mainly due to the decline in high-margin smart card revenue.
Promotions lead to increased sales expenses and loss of 10 million yuan in foreign exchange products.
In the first half of the year, due to the sluggish industry demand, the company took the experience and traded in other types of promotional activities. The cost of the promotion was shared equally among the company, the general agent, and the distributor, so the sales expenses in the first half of the year.
1 ppm, an increase of 14 per year.
3%, sales rate increased.
Due to the depreciation of the Renminbi, the loss on fair value changes in the company’s foreign currency derivative financial instruments in the first half of the year was 10.45 million yuan.
Short-term borrowings increase financial costs.
In the first half of the year, the company’s financial expenses were 5.98 million yuan, an increase of 14.7 million yuan over the same period of the previous year, mainly due to the increase in index expenditures, while the increase in index expenditures was due to the increase in short-term expenditures.
The company’s short-term loans in the first half of the year 2.
US $ 7.6 billion, short-term borrowings mainly come from bank borrowings of various subsidiaries.
Jack’s parent company provides acceptance bills to the 苏州桑拿网 subsidiaries, and the subsidiaries use such acceptance bills to conduct bank discounts and pay cash to suppliers after receiving cash to ensure that the suppliers receive cash.
Overseas income 10.
1 ppm, an increase of 1 in ten years.
3%, domestic sales income 10.400 million, down by 1 every year.
Overseas gross profit margin 29.
5%, significantly higher than the domestic gross profit margin of 24.
3%, in addition to the external influence of foreign exchange influence factors, also reflects the company’s strong overseas competitiveness. At present, there are more than 7,000 dealers and their distribution outlets in 130 countries around the world, with the world’s most powerful sewing machine distribution network.
Operating cash flow returned to normal levels.
Net operating cash flow in the first half of the year 2.
USD 5.7 billion, a year-on-year 深圳桑拿网 increase of 195%, of which the net cash flow in the second quarter of the single quarter1.
In the first half of the year, the company continued its “cash on spot” strategy for suppliers. After “debt repayment” (the company’s cash flow in 2017 was significantly higher than its net profit), the cash flow has returned to normal levels.
The industry has bottomed out, waiting for demand to pick up.
The sewing machine industry is affected by many factors including the global economic growth, the escalation of Sino-U.S. Trade disputes, and industrial adjustment and adjustment. Demand in the first half of the year, especially since the second quarter, was significant.
In terms of domestic sales, from January to May 2019, more than a hundred backbone machine enterprises counted by the Association gradually produced sewing machinery and equipment 249.
800,000 units, down 13 each year.
17%, of which the industry ‘s monthly output increased from April to May, and the negative growth trend increased, with a decline of about 18%.
Although the association statistics from January to May, more than a hundred backbone machine manufacturing enterprises in the industry gradually sales revenue of about 72.
8.3 billion, a decline of 10 per year.
06%, but according to our industry chain study, the actual industry scale is much larger than 10%, and the overall demand for internal sales in the first half of the year is expected to fall by about 25%.
Correspondingly, the inventory remained high and the industrial machine inventory in May was terminated58.
110,000 units, an increase of 49 in ten years.
In terms of export, the export value of industrial sewing machines in the first half of the year was 6.
USD 3.0 billion, an annual increase of 2.
3%, slightly better than domestic sales, but the growth rate continued to narrow monthly.
According to industry chain research, the industry has bottomed out and is expected to gradually pick up after the third quarter.
Cultivation of internal strength against the trend, Jack’s possession increased significantly.
In the difficult period of the industry, Jack has been practicing internal skills, expanding and expanding R & D and promotion, improving product quality, and optimizing internal organizations to reduce costs and deposits. The internal sustainability has been significantly improved since the second quarter.
At the same time, through the promotion of A5 and A6 high-end products, major customer reception days and other market activities, the company has enriched its downstream customer base. It has now formed better brands with Esquel, Hailan House, Shenzhou International and other well-known clothing factories.Partnership.
Performance forecast and investment advice.
Industry demand, market value bottomed out, highly recommended!
We believe that the short-term adversity will further increase Jack’s competition and market share, widen the gap between subdivision and subdivision, and wait for the industry to improve (the sewing machine cycle has always been), Jack’s growth rate will be explosive!
At present, industry demand has bottomed out, and the market value has fallen into the value range. However, the company’s industry space has been stable and upward for a long time, and it has continued to consolidate as a whole. We believe that it is a better buying opportunity.
Forecast of Jack’s shares in 2019 revenue 46.
500 million yuan, net profit 4.
9.8 billion yuan, corresponding to the current PE 16.
7 times, highly recommended!
Risk warning: the growth rate of the internal sewing machinery industry continues to expand; the prices of raw materials continue to rise; liquidity risks, etc.