Midea Group (000333): Persist in T + 3 mode terminal channel efficiency to improve appliance Elephant continue to run

Midea Group (000333): Persist in T + 3 mode terminal channel efficiency to improve appliance “Elephant” continue to run
The event company released its 2018 annual report and gradually realized a total operating income of 2618.2 ‰, an increase of 8 in ten years.23%, net profit attributable to mother 202.31 ppm, an increase of 17 in ten years.05%, net profit after deduction is 200.580,000 yuan, an increase of 28 in ten years.46%. Among them, Q4 achieved total operating income of 509.08 million yuan, an increase of 0 in ten years.48%, net profit attributable to mother 23.31 ppm, an increase of ten years.97%, net profit after returning to the mother 28.0.6 million yuan, an increase of 70 in ten years.67%. Brief comment (1) Revenue growth is steady, Q4 growth continues to fall, and total operating income in 2018 reached 2618.2 ‰, an increase of 8 in ten years.23%, of which Q4 realized total operating income of 509.08 million yuan, an increase of 0 in ten years.48%.The initial revenue growth contribution was mainly concentrated in the first half of the year, and the second half of the year was affected by the overall market environment. In terms of categories, HVAC revenue was 1093.950,000 yuan, an increase of 14 in ten years.62%; consumer electronics revenue was 1029.93 ppm, an increase of ten years4.3%; Robot and automation system revenue was 256.78 ppm with a ten-year growth rate of -5.03%. In addition, according to industry online data, Midea’s air conditioners achieved sales of 3666 in 2018.300,000 units, an increase of 5 in ten years.69%, of which 20.49 million units are sold domestically, with an annual increase of 2.96%, export 1617.30,000 units, an increase of 9 in ten years.35%.The total sales volume of washing machines in 2018 was 1,779.07,000 units, an increase of 5 in ten years.86%, of which domestic sales were 1422.450,000 units, an increase of 7 in ten years.25%, exports 356.620,000 units, an increase of 0 in ten years.67%; total sales of refrigerators in 2018 were 1030.160,000 units, an annual increase of 2.44%, of which domestic sales were 558.80,000 units, an increase of 0 in ten years.2%, export 471.360,000 units, an annual increase of 5.01%. (2) The profitability has been greatly improved, the product structure has been upgraded, and the decline in the price of raw materials has been mainly due to the company’s net profit attributable to the parent in 2018.31 ppm, an increase of 17 in ten years.05%, net profit after deduction is 200.580,000 yuan, an increase of 28 in ten years.46%, gross margin 27.54%, an increase of 2 per year.51pct, net profit margin 8.34%, an increase of 0 a year.61 points.Among them, Q4 achieved net profit attributable to mother 23.31 ppm, an increase of ten years.97%, net profit after returning to the mother 28.0.6 million yuan, an increase of 70 in ten years.67%.Gross profit margin for Q4 was 28.58%, a high increase of 4 a year.66 points. The gross profit margin level has increased sharply, sustainable companies have continued to “push up and sell expensive”, the product structure has been continuously upgraded, the price of alternative raw materials has opened a downward channel, and the profit margin has increased.In addition, the decline in KUKA’s premium amortization expenses (amortization of about 24 trillion in 17 years, amortization of 600 million yuan in 18 years) also contributed part of the reason. (3) Strengthening the control of KUKA’s business in China, 19 years of management costs will be relatively stable in 2018 due to the impact of the industry environment, and Midea’s long-term layout, taking the initiative to adjust, resulting in lower than expected market revenue,Casually strengthening Midea’s control of KUKA China (by merging KUKA’s China operations and establishing a joint venture for direct management), and the Shunde plant is put into production, and it is expected that new development will be ushered in 2019.With the completion of KUKA’s business integration in China, KUKA’s revenue is expected to achieve positive growth in 2019. (4) Promote fair incentives, normalize and stabilize dividends, and help the company to further develop the company’s core management and technical teams at different levels. The company has launched a five-phase stock budget incentive plan and a two-phase cost stock incentive 武汉夜网论坛 plan.Global Partner Shareholding Plan and Phase I Business Partner Shareholding Plan.The company launched a total of three sets of equity incentives, including the 19-year expansion of the stock incentive plan, the sixth phase of the stock incentive plan, and the core management team’s shareholding plan and the Midea Group’s global partner plan’s fifth shareholding planCovering managers at all levels and core business backbones, the total number of people exceeds 1,000. In terms of dividends, the company continues to maintain a total dividend rate of over 40%. According to the commitments made during the acquisition of Little Swan, it will still maintain a high dividend level in 2019.30%, of which cash is not less than 60%.In addition, the company completed approximately 4 billion share repurchase programs, effectively safeguarding market value stability and the interests of all shareholders. Investment suggestion: We believe that the company adheres to the global operation strategy, has a comprehensive layout in the home appliance category and upstream and downstream, and has long-term steady growth.With the gradual recovery of real estate, the decline in raw material prices, and the strengthening of control over KUKA’s business in China, the company will usher in further development.We expect 2019-2020 net profit of 233.700 million, 264.700 million, an increase of 15 in ten years.5%, 13.3%, corresponding to PE14.7, 13.0 times. Risk warning: rising raw material costs; increased industry competition.