Meng Lily (603313): Performance growth surpasses expectations, overseas layout helps development

Meng Lily (603313): Performance growth surpasses expectations, overseas layout helps development

Event: The company released the third quarter report of 2019: the company achieved revenue in the first three quarters of 26.

390,000 yuan, an increase of 25 in ten years.

40%; net profit attributable to mother 2.

600,000 yuan, an increase of 135 in ten years.

89%; net profit after deduction to mother 2.

690,000 yuan, an increase of 99 in ten years.


Achieved revenue of 成都桑拿网 10 in the third quarter.

590,000 yuan, an increase of 28 in ten years.

88%; net profit attributable to mother 1.

100,000 yuan, an increase of 52 in ten years.

17%; net profit after deduction to mother 1.

32 ppm, an increase of 64 in ten years.


  Opinion: Revenue has grown steadily, and the depreciation of the RMB + price reduction of raw materials has increased short-term profits.

The company’s 19Q1 / Q2 / Q3 achieved revenue 7 respectively.



5.9 billion, an increase of 28 each year.

78% / 18.

06% / 28.

88%, 19Q1 / Q2 / Q3 respectively achieved net profit attributable to mother 0.



100,000 yuan, an annual increase of 1547.

30% / 123.

91% / 52.


Since May, the renminbi has continued to depreciate, and the offshore exchange rate has increased from 6 at the end of April.

70 depreciated to 7.


TDI prices have fallen from a high of 17,250 yuan / ton in April this year to the current 12,600 yuan / ton, a decrease of 26.

96%, affected by the continuous decline in the prices of raw materials and the depreciation of the RMB, increasing the company’s short-term profits, and the performance growth exceeded expectations.

  The decline in raw material prices has drastically increased gross profit margins, and revenue is expected to accelerate in the fourth quarter.

In terms of gross profit margin, the company’s gross profit margin for the first three quarters of 19 was 37.

01%, an increase of 6 a year.

91pct. The gross profit margin improved significantly due to the price cuts of raw materials.

In terms of expense ratio: the company’s expenses during the first three quarters of 1922.24%, increase by 1 every year.

52pct, sales / management / financial expense ratios are 13 respectively.

32% / 8.

53% / 0.

39%, which is increased by 0 each year.



65 points.

Administrative expenses increase by 46 per year.

31% was due to the newly acquired Long Lok Fu incurred expenses and employee compensation, resulting in increased consulting fees.

In the third quarter, financial expenses were -1704.

RMB 860,000 was mainly due to the increase in input exchange gains caused by changes in the RMB exchange rate.

Net cash flow from operating activities in the third quarter decreased by 152 per year.

35%, the cash line for purchasing goods and paying employees’ salaries increased by 47.

82% and 44.

07%, the first three quarters of inventory increased by 41 half a year.


The company prepared stocks in advance to meet the peak sales season in the fourth quarter, and the fourth quarter revenue growth attempted to accelerate.

  Acquired Mor furniture in the United States and expanded its own channels in the United States.

The company recently successfully acquired Mor Furniture, which is one of the largest family furniture companies on the west coast of the United States. It currently has 33 stores in six states (Arizona, Oregon, Idaho, Nevada, New Mexico, Washington). The main products areAll categories of home furnishings.

The acquisition of Mor Furniture will allow the company to further expand overseas, which is conducive to the expansion of OBM’s business.

  The final ruling on anti-dumping is favorable for companies with overseas production capacity.

On October 18, the US Department of Commerce issued the final ruling on anti-dumping against Chinese mattresses: Of the companies surveyed, only Hengkang Household (Meng Lily) received 57.

03% of anti-dumping duties, the remaining 36 companies levied a separate tax rate were levied 162.

76%, much higher than the initial 74.


  Another off-list companies were collected in 1731.

75% of anti-dumping duties are in line with the preliminary ruling.

This ruling is the final ruling of the Ministry of Commerce. In general, it still needs to pass the final ruling of the International Trade Commission (ITC). The ITC ruling will be determined on December 2 and will be finally implemented after it is approved.

Until then, some cash deposits from mattress companies will be accepted.

  In January and February of 2019, China’s market share of imported mattresses in the United States was 82% and 87%, and the market share subsequently declined rapidly. From March to July, the market shares were 64%, 39%, 33%, 9%, and 2%.

As of August, the United States imported 7068 mattresses from China, a 99% reduction from the same period in 18 years, leaving only 1% of the market share.

We believe that this final ruling will result in the complete withdrawal of mattresses made in China from the US market.

The company currently has a number of overseas factories in Serbia, Spain, the United States, and Thailand. The taxed US orders (thin pads, pillows and other products) have all been moved to overseas factories.

Affected by anti-dumping, the company’s recent overseas orders are very good. Currently, overseas production capacity is still climbing (Serbia is approaching full production, and the cumulative revenue generated by the US production capacity) will help increase revenue in the future.

  Profit forecast and forecast: The final anti-dumping ruling will be beneficial to companies with overseas 北京桑拿洗浴保健 layouts. Overseas expansion will exceed production capacity expansion. It is expected that the company’s revenue will achieve rapid growth and raise its profit forecast.

The EPS is expected to be 1 in 19-21.


61, 1.

94 yuan, corresponding PE is 14X, 10X, 9X.Give “Buy” rating.

  Risk warning: raw material prices rise sharply