Aojiahua (002614): 18 years of stable sales of domestic sales of beautiful massage chairs high growth in 19Q1 still steady growth
Event On February 26, Aojiahua released the 2018 performance report, and the company achieved a total operating income of 53 in 2018.
64 ppm, an increase of 24 in ten years.
93%; net profit attributable to mothers4.
500,000 yuan, an annual increase of 30.
32%; net profit deducted from non-attributed mothers3.
69 ppm, an increase of 40 in ten years.
In terms of quarters, the company’s Q1 / Q2 / Q3 / Q4 2018 revenues reached 10 in each quarter.
8.6 billion, an annual increase of 33.
85%; net profit attributable to mother is 0.
41 ppm, an increase of 50 each year.
At the same time, Aojiahua announced the first quarter of 2019 performance forecast, the company is expected to achieve net profit attributable to mothers in Q1 2019.
380,000 yuan, an increase of 25 in ten years.
Brief Comment 1. The massage chair continued to grow at a high rate and its performance maintained a high double-digit growth.
64 ppm, an increase of 24 in ten years.
93%; net profit attributable to mothers4.
500,000 yuan, an increase of 30 in ten years.
32%, continued to maintain high double-digit growth.
Among them, the growth rate of Q4 in the single quarter accelerated somewhat. Revenue and net profit attributable to mothers increased by 12 respectively.
The performance in 2019Q1 has stabilized, and under a high base, it still has double-digit growth, and it is expected to achieve net profit attributable to mothers.36-0.
380,000 yuan, an annual increase of 25.
In 2018, the company’s massage chairs exceeded the 2 billion mark, a year-over-year growth of over 50.
00%, mainly due to the company’s intensive research and development and manufacturing, brand strength of massage chairs, continuous improvement of technical capabilities, and the rapid development of independent brands and ODM business.
2. The domestic market saw heavy growth, and the US and South Korean markets performed well. 1) The domestic market: omni-channel, diversified layout, helping the rapid growth of domestic sales. In 2018, the company’s domestic massage chair business increased significantly by 70.杭州桑拿网
00%, the overall layout progress gradually.
The company’s offline strategy closely follows the tactics of “direct sales and service improvement; increase store efficiency; distribution does sinking, expanding store” tactics, direct operation stores grow rapidly, and distribution stores steadily sink.
As of the end of June 2018, Aojia China has 554 offline stores, of which 104 are directly operated stores, and the efficiency of single stores has increased by 66%; 450 stores have been distributed, and the number of stores has increased by more than 50%.
Online learning “branding, commission sharing” strategy, with independent operation team as the core, continue to introduce cost-effective online dedicated new products to promote the expansion of brand influence.
Efforts to digitize new marketing and upgrade brand promotion: In 2018, the company once again became the official partner of “China Good Voice” and deeply exerted the IP influence of “China Good Voice”. At the same time, it placed ads on top variety show platforms and included product implantation.In the hit movie “The Richest Man in Xihong City”, brand exposure and influence continue to expand.
2) International market: The independent brand has grown steadily, and ODM business has rapidly broken through the independent brand. The company’s main international brands of massage chairs are OGAWA, Taiwan’s “FUJI” and the United States “COZZIA”.
Among them, OGAWA’s advertising effectiveness in Hong Kong, Singapore, Malaysia and other markets has been significantly improved, and the store efficiency has been significantly improved; the new-generation “iSOFA” sofa massage chair launched by Taiwan’s “FUJI”, and the master’s hand warm master chair promoted by “COZZIA” in the United StatesThe local market is being sought after, and new products are selling well to drive steady revenue growth.
In terms of ODM business, in 2018, the company focused on the development of international massage chair markets such as South Korea, the United States, Indonesia, and the Middle East. The South Korean and American markets developed rapidly during the year.
In recent years, the market for massage chairs in South Korea has been gaining momentum and imports have increased significantly.
In 2017, the number of massage chairs imported from China reached 270,000 units. The growth rate in 2018H1 has not decreased, and the import volume has increased by 60%. At present, it is the largest incremental market for the company to develop.
In 2018, the company’s volume of massage chair business in the Korean market broke through, growing about 160 each year.
3. Hold the opportunity of sharing massage chairs and cooperate with Yunxiangyun in a stable layout. In March 2018, the company and Yunxiangyun strategic cooperation agreement to jointly develop smart shared massage chair business. Yunxiangyun will purchase from the company an unexpected number of shared massage chairs.300,000 units (with no less than 180,000 units purchased in 18 years), which strongly promoted the company’s sales growth.
In addition, the company will collect, analyze and drain the experience data of shared massage chairs, deepen user needs, build a big data center based on shared massage chairs, accelerate the construction of online health malls for massage products, create a new retail model, and promote the company’sThe rapid development of the domestic market.
4. Hand in hand with South Korea BJSC to strengthen the alliance, and the order in hand is expected to be based on the company’s leading research and development on massage chairs, manufacturing advantages and good market prospects in the Korean market. On September 11, 2018, the company and Korean massage chair leader Bok Jung Scale Corp (BJSC) has signed a cooperation agreement and intends to carry out comprehensive cooperation in R & D, production, sales, outsourcing, etc., and is scheduled to be purchased by the BJSC from the company at no less than 0 in 2019, 2020, and 2021.
500 million, 0.
$ 700 million and $ 100 million massage chair products.
BJSC is Korea’s leading supplier of massage chairs, massagers and health equipment, and its comfortable brand massage chairs rank second in the Korean market.
At the same time, it has a wide range of channels including large-scale physical stores, online malls and TV shopping in South Korea. Its offline physical stores are mainly located in mainstream large-scale stores such as Samsung, Himart, and Emart.
Through cooperation, the company’s products will be able to rely on BJSC’s strong brand power and offline channels to achieve rapid volume, at the same time 3 years of stable orders will also make a positive contribution to subsequent performance.
5.Issue convertible bonds to expand production capacity and establish continuous growth of massage chairs On February 1, 2019, the company issued an announcement that it plans to issue $ 1.2 billion of scalable bonds to expand the production scale of massage chairs and small massage appliances.7.
5 billion raised funds will be used for “Xiamen Aojia Intelligent Health Equipment Industry 4”.
0 project “, with an expected annual output value of 27 after reaching production.
00 ppm; 4.
5 billion raised funds are used for “Zhangzhou Aojiahua Intelligent Health Industrial Park” project, with an expected annual output value of 13 after reaching production.
The investment project is planned to reach capacity in December 2023. After the capacity is reached, the power generation capacity of 500,000 smart massage chairs and 15.6 million small massage appliances will be added to effectively alleviate the company’s power generation capacity.
As of the end of 2018, the company’s total annual production capacity was 21.3 million units, including 300,000 massage chairs, 17 million small massage appliances, and 4 million healthy environmental products.
With the rapid increase in the penetration rate of domestic massage chairs, the company’s production capacity of massage chairs and small massage appliances has reached saturation.
The issuance of convertible bonds will help the company break through capacity growth and support future sales growth.
And through new equipment to further enhance the company’s market competitiveness, increase its market share in the global market, and consolidate the company’s leading scale.
Investment suggestion: We estimate that the business income of Allison in 2019-2020 will be 65.
10, 78.14 ppm, with a growth rate of 21 each year.
03%; net profit attributable to mothers is 5.
10,000 yuan, the annual growth rate was 25.
50%; EPS is 1.
25 yuan / share, corresponding to PE of 17.
11x and 13.
74x, maintain “Buy” rating.
Risk factors: The RMB exchange rate fluctuates sharply, and competition in the industry has intensified.