Guangzhou Restaurant (603043) 2019 Interim Report Review: Equity Incentives and R & D Interventions Impact Q2 Performance Interim Report

Guangzhou Restaurant (603043) 2019 Interim Report Review: Equity Incentives and R & D Interventions Impact Q2 Performance Interim Report

Investment Highlights Company Announcement: 1) Revenue in 19H1 9.

51ppm / + 20.

22%, net profit attributable to mother is 64.3 million yuan / + 10.

19%, deducting non-attribution net profit of 5,130 yuan / -4.


Among them, Q2 single quarter revenue4.

1.9 billion / + 20.

77%, net profit attributable to mother is 18.79 million yuan / -4.

92%, deducting non-attribution net profit of 9.43 million yuan / -41.


2) Change the accounting estimates, and change the lease deposit of other business receivables from the provision for bad debts in the previous aging analysis method to no provision for impairment of bad debts.

  In the first half of the year, Q2’s profit accounted for a very small proportion of the previous, and the range of change was normal.

Since the moon cake business with the highest profit margin in Guangxi mainly recognizes revenue in Q3, and Q2 is also quick-frozen, and the sales of wax products are low season, Q2 is the lowest in terms of net profit and net interest rate.

The highlight of the company’s interim report is that the target business revenue has maintained double-digit growth, advance receipts, inventory and operating net cash flow have increased compared with the same period of the previous year, and the construction of the new factory in Xiangtan has been accelerated and the first phase has been trial-produced.The performance in 19H2 and the next few years will grow rapidly.

  Revenue from various businesses has grown steadily, and online marketing network construction has achieved initial results.

19H1 company revenue 9.

51 ppm / + 20.

22%, 1) By product: Mooncake series revenue is 0.

34 ppm / + 107.

99% of this year’s Mid-Autumn Festival is slightly ahead of last year.

60 ppm / + 22.

77%, revenue from other products3.

03 ppm / + 17.

63%, catering revenue 3.

3.7 billion / + 14.

01%; 2) By region: revenue in Guangdong Province 8.

2.5 billion / + 17.

64%, domestic and foreign revenue is 0.

91 ppm / +45.

The 34% rapid growth comes from the gradual emergence of the effects of Internet marketing construction, and overseas revenue is zero.

1.7 billion / + 3.

18%; 3) points model: direct sales 5.

2.6 billion / + 18.

15%, distribution 4.

08 ppm / + 21.

The growth rate was slightly faster at 42%, of which dealers in Guangdong Province increased by 34/11 in 19H1.

  Gross profit margin stayed flat, net interest rate declined, and rates increased during the period.

19H1 company gross profit margin 47.74% / + 0.

05pct is basically flat with a net interest rate of 6.

65% /-0.

82pct decreased slightly.

In terms of period expenses, the sales rate is 27.

58% /-1.

24pct reduces costs from advertising and other management costs (excluding R & D) 11.

64% / + 1.

26pct is derived from the additional supplementary equity incentive expenses of 7.43 million yuan and increased staff costs, and the R & D expense ratio2.

28% / + 1.

26pct originates from the company’s increase of new production lines and new product research and development expenditures, and the financial rate is -1.

18% / + 0.

23pct is basically flat.

Taken together, excluding the impact of changes in accounting policies, the company’s performance in the first half of the year has improved. The main sources are: 1) increased distribution incentive costs; 2) increased R & D investment;
  Earnings forecast and investment rating: The company’s non-performance maximization in the 北京夜网 first half of the year was due to the increase in original incentives and R & D expenses, but the increase in advance receipts and inventory indicated that Q3 moon cake sales were good, and performance gradually returned to normal growth.

Looking forward to the future, the new factories in Xiangtan and Meizhou will be gradually put into operation, and the transformation of the production base of Liangfeng Park and Likoufu will be advanced steadily. The marketing network inside and outside Guangdong will continue to be built, and the expansion of supply and demand will promote rapid growth of performance.

According to the performance situation, the profit forecast is slightly reduced, and the EPS is expected to be 1 in 19-21.



60 yuan, the closing price on August 27 corresponding to PE is 33/27/22 times, maintaining the level of “prudent increase”.

  Risk 杭州桑拿 reminder: The development and growth of attractions are less than expected, natural weather disasters affect the passenger flow of attractions, and the risk of goodwill impairment, etc.