Oupai Home (603833) 2018 Annual Financial Performance Review: All categories are diversified, channels are diverted, leading positions are installed, and home furnishing strategy has become a new bright spot for growth.

Oupai Home (603833) 2018 Annual Financial Performance Review: All categories are diversified, channels are diverted, leading positions are installed, and home furnishing strategy has become a new bright spot for growth.

Investment Highlights: Event: The 4/9 company released its 2018 annual report, which reported a real operating income of 115.

09 million yuan, an increase of 18 in ten years.

53%; net profit attributable to mother 15.

72 ppm, an increase of 20 in ten years.


The company’s 2018 performance is in line with expectations. It is expected that revenue will increase by 15% annually in 2019, total operating costs will increase by 15% annually, and net profit will increase by 20%.

The initial performance was dazzling and led the industry.

The company is the first company in the home furnishing industry with an operating income of over 10 billion yuan. The operating income accounted for about 33% of the listed companies in the custom home furnishing industry and net profit accounted for about 39%.

In 2018, the company’s main business income was 113.

3.1 billion (18.

49% yoy), net profit attributable to mother realized 15.

7.2 billion (20.

90% year-on-year growth).

Among them, 18Q4 realized revenue and net profit attributable to mother 33 respectively.

1.2 billion (18.

02% yoy) and 3.

7.2 billion (4.

51% YoY).

The full category matrix + multi-channel drainage is the main source of revenue growth.

The company’s category layout is complete, and the integration effect of each category is better.

The kitchen cabinet business line conducts omni-channel marketing, and strives to achieve diversified drainage through the construction of emerging channels such as assembly + e-commerce + community, and gradually breaks through the performance of assembly orders.

5 billion.

Wardrobe optimized the promotion package, promoted the sales of supporting products, and the scale of sales increased by 17%.

7% to 1.35 million sets.

New categories of wooden doors and bathrooms benefited from product upgrades and the diversification and liquidation capabilities of the leading multiple channels, all achieving rapid growth.

Promote the omni-channel layout and seize the front-end traffic entrance.

Against the background of the sinking of industry channels and the diversification of traffic entrances, the company actively explored the channel change direction.

The advantages of traditional channels are still in place. In 2018, 521 new dealers were added, with a net increase of 800 stores.

Initial results of the expansion of emerging channels: heavy volume of engineering channels and a steady increase in gross profit margin1.

52pct; Explore new retail channels through shopping malls, community stores, and Gome stores.

The full-category matrix and strong brand strength 杭州夜网论坛 are the expected foundation of the big home strategy, and the big home furnishing strategy is expected to become the driving force for continued growth in performance.

The company began to explore large-scale home furnishings in early 18th. At present, it mainly adopts the model of direct cooperation with high-quality home improvement companies with various scale expansions and better reputations to empower products, brands and services.

In the first half of the year, the first large-scale home furnishing pilot city landed in Yibin, with 602 orders received from May to July; at the end of the year, the big home strategy had spread to 22 cities across the country and established successful models (Yibin model, Changsha model).
In the future, in addition to promoting the assembly channels in the dealers, the company will actively develop cooperation with decoration leaders.

The entire equipment is expected to become the main source of the dividends from emerging channels, which will continue to increase the company’s performance.

Profit forecast and investment grade: The company is expected to achieve operating revenues of 132 in 2019-2021.

4.8 billion, 157.

9.1 billion, 174.63 ppm; net profit was 18.

9.9 billion, 22.

6 billion, 26.

5.6 billion; EPS is 4.

52 yuan, 5.

38 yuan, 6.

32 yuan, the corresponding PE is 27.

02x, 22.

71x and 19.


First coverage, giving the company a “strong recommendation” rating.

Risk reminder: the risk of increasing raw material prices, the risk of increasing market competition