Depth-Company-Dream Lily (603313): Profitability improved markedly, production capacity changes steadily advanced

Depth * Company * Dream Lily (603313): Profitability improved significantly, production capacity changes steadily advanced

The company disclosed its semi-annual report for 2019: the report consolidated and the company realized revenue of 15.

800 million, +23 a year.

2%; net profit attributable to mother 1.

5 ‰, +294 per year.

8%; non-net profit attributable to mother 1.

4 trillion, +149 a year.


Among them, 19Q2 achieved revenue of 7.

9 trillion, ten years +18.

1%; net profit attributable to mother is 75.08 million yuan, +123 per year.

9%; deducted non-net profit of RMB 84.81 million, +56 for ten years.


Key points of the support level Domestic sales growth has improved performance, and domestic omnichannel development has been actively promoted.

In the short-term report, the company’s revenue is +23 per year.

2%, 19Q2 + 18.

1%, a month-on-month decrease, in which the revenue of memory foam mattresses and memory foam pillows respectively exceeded +17.

8%, -6.

1%, the growth rate in the first half of 2018 is 8.

9%, 0.

3%, revenue accounted for -2.

4%, -4.

4% to 51.

4%, 14.

1%, sofa, electric bed revenue share increased from zero to 9.

8%, 8.


Affected by the declining demand in the real estate market in mainland China, revenue growth rate was replaced by 7.

5%, accounting for -2.

3% to 15.

8%, foreign revenue +26.

5%, accounting 杭州桑拿网 for +2.

2% to 83.


However, the company actively explores domestic self-employed, franchise, department store, and hotel channels. It now has thousands of sales terminals and reached strategic alliances with large large-scale home furnishing stores.Platform, offline and online synchronization, laying the foundation for the next generation of domestic business.

The preliminary anti-dumping ruling is beneficial to the company, and the production capacity is actively transferred overseas.

In May this year, the United States imposed a 25% tariff on mattresses exported from China. The US Department of Commerce also announced the preliminary findings of the anti-dumping investigation that began at the end of 18, with the company’s lowest anti-dumping tax of 38.

56%, reflecting that the company’s products win with quality rather than dumping at low prices, and local customer relationships are stable, and the remaining few companies are 74.
65% or 86.
64%, the number of unexpected companies was 1,731.

75%. If the final ruling in October this year maintains this criterion, it is expected that a large number of BM clearing will be ushered in, the industry concentration will accelerate, and the company will benefit significantly.

In fact, the company is actively carrying out overseas production capacity deployment. Serbia, Spain, and Thailand production bases have been put into production and supply capacity to the world. The output value is expected to be about 900 million US dollars. The US production base is accelerating construction.The base is put into production, and overseas factories will gradually cover the US market demand.

Lower raw material prices and the depreciation of the renminbi helped boost profitability.

The US dollar is the settlement currency of the company’s export business (with revenue accounting for over 80%). During the reporting period, the prices of main raw materials TDI and MDI continued to fall by about 30% -60%.19H1, 19Q2 gross margin extended by +9.

0pct, +9.

1pct to 37.

4%, 40.


Transportation and miscellaneous expenses and sales channel fees increased, employee compensation increased, convertible bond interest expenses, etc. increased sales / management / financial expense ratio by +1.

1 point / 1.

5 points / 1.

4pct, 19Q2 +2 twice.

5 points / 2.

8 points / 1.

3pct, the net profit of 19H1 and 19Q2 was extended by +6.

5pct, +4.

7 points to 9.

8%, 9.


The Sino-US trade war will reduce the number of mattresses exported by the United States to the United States (at least the largest exporter of mattresses), affect the demand for raw materials, suppress the prices of TDI and MDI, and the company ‘s gross profit margin will remain at a high level in the second half of the year.

It is estimated that the company is actively constructing domestic omni-channels, continuously expanding its production capacity, and is relatively affected by the Sino-US trade war among mattress companies. The prices of TDI and MDI raw materials have continued to decline, and the gross profit margin has room for improvement.The annual EPS is 1.



06 yuan, an annual increase of 94.

6% / 30.

0% / 31.

2%, corresponding to the current expected PE16X, maintain BUY rating.

The main risks faced by the rating are rising raw material prices; RMB appreciation; overseas production bases are put into operation later than expected.