Zhibang Home (603801): Share repurchase highlights confidence in the development of cabinet and wood linkage to help large homes

Zhibang Home (603801): Share repurchase highlights confidence in the development of cabinet and wood linkage to help large homes

Event: The company announced that it intends to use its own funds to repurchase no more than 4.5 million shares of the company’s shares, accounting for the company’s total issued share capital2.

01%. The repurchase amount is between 70 million yuan and 135 million yuan. The repurchase price does not exceed 30 yuan / share. The repurchased shares are used for equity incentives.More than 6 months.

Opinion: This share repurchase reflects the company’s confidence in the future development prospects and recognition of the company’s value, which is conducive to stabilizing investors’ expectations of the long-term value of the company’s stock. The use of share repurchases for equity incentives can fully mobilize the company’s directors and senior managementThe enthusiasm of middle managers and core backbones combines the interests of shareholders, the company and the core team.

Product side: wardrobes, wooden doors contribute new performance increase, and cabinet wood synergy effects gradually appear.

1) Continuously develop new products and consolidate the foundation of cabinets.

The company ranks second in the cabinet industry. The cabinet business has formed six major product series. Until the end of 2018, there were 1,487 cabinet specialty stores in the cabinet industry. 2) The company made efforts to customize the whole house, and the wardrobe business grew rapidly.

In August 2018, the company shifted from overall kitchens and custom wardrobes to whole-house customization. Until the end of 2018, there were 726 custom wardrobe specialty stores and 33 IK whole-house specialty stores.

3) Incubate wooden door business and contribute to performance increase.

By cutting into the wooden door market, it is possible to achieve cabinet-clothing-wood linkage and expand the whole house’s custom home category. Until the end of 2018, the company has 117 wooden door dealers and 88 stores merging with other categories.

On the channel side, retail stores continued to develop, the structure of bulk customers was optimized, and the export business developed rapidly.

The company plans to open 150 new cabinet doors, 100 wooden doors, and 350 custom-made closets and whole-house customized stores in 2019.

In terms of bulk business, the structure of bulk customers has been optimized. Most of the bulk customers are top 100 real estate companies, listed companies on the main board and regional leading real estate companies. Among them, the top 100 real estate customers accounted for 30%.

The company’s export revenue in 2018 was short-term + 87.

26%, innovating the Australian IJF equity cooperation model, establishing a project team in the Americas market, and exploring changes in development paths.

We expect the company’s EPS to be 1 in 2019-2020.

41, 1.

61 yuan, corresponding 杭州桑拿 to 13 PE for 2019-2020.

56, 11.

87 times. Considering the company’s entire category, the multi-brand layout fosters new revenue growth points and maintains a “buy” rating.

Risk reminder: degree of real estate prosperity-exceeding expectations, business promotion is less than expected, etc.