Midea Group (000333): Bright performance and incentives effectively promote new sales

Midea Group (000333): Bright performance and incentives effectively promote new sales
Midea Group released its 2019 semi-annual report with operating income of 1,543.3.3 billion / + 7.37%, net profit attributable to mother 151.$ 8.7 billion / +17.39%, gross profit margin 29.48% / + 2.32pp. , Net interest rate 10.44% / + 0.78pp. The selling expense ratio is 12.65% / + 0.90pp., Management expense ratio 5.60% / + 0.57pp.The financial expense ratio is -0.93% /-0.25 pages. The air-conditioning business has grown against the trend, and the retail market share has ranked first online.With a slight short-term overlap in retail sales in the first half of the year, the company’s HVAC revenue was 71.4 billion US dollars, accounting for 46% of total operating revenue, which is constantly growing11.8%, gross margin 32.08%, increase by 1 every year.83 units.Industry Online concluded that in the first half of the year, the sales volume of domestic air conditioners increased by 23%, the export volume increased by 7%, and the total sales volume increased by 15%.Of the online and offline sales market share counted by Aowei Cloud, online division 29.5%, ranking first, with a total of 27 offline.2%, ranking second.With the reform of channels and the strengthening of domestic product synergy, air conditioners achieved contrarian growth. The steady growth of consumer electronics in the first half of the year pushed the gross profit margin to increase steadily by pushing new sales.In the reporting year, consumer electronics (refrigerators, washing machines, kitchen appliances, small appliances, etc.) had revenues of 58.3 billion, accounting for 38% of total operating revenue, a year-on-year increase of 5.6%, gross margin 31.28%, an increase of 3 per year.72 average values, continued to push new sales expensive effect is significant.The revenue and gross profit margin of the robot business decreased slightly, but no goodwill provision was made for impairment. The sales rebate increased sharply, and the sales expense ratio increased. In the first half of the year, the company introduced a leading sales stimulus policy.The net increase in the first half of this year was 66 trillion in advance sales rebates, compared to 20 trillion in the first half of last year. The increase in sales rebates was accompanied by an increase in the sales expense ratio.According to the report’s budget, sales expenses increase by 16% each year, and sales expenses expenditure is 12.7%, higher than the same period last year 11.8%.The note reports that leading companies have introduced aggressive sales stimulus policies. Since 2017, the hair gap has gradually expanded, and incentive policies have promoted new products and expensive products.Gross margin was 16 in the first half of 2019.83%, compared with an average of 15 in 2018.67%, compared to 15 in the first half of 2018.41%, compared with 13 in 2017.98%. The gross sales gap has shown continuous growth since 2017, and sales incentive policies have effectively promoted the increase in gross profit margin recovery. Profit forecast and investment recommendations: Report that the combined company’s revenue will grow steadily and profits will grow rapidly, in line with market expectations for the United States, and it will grow against the trend when the prosperity of the air-conditioning industry is not high in the first half.In the first half of the year, the sharp increase in the rebate of sales and the increase of the sales expense ratio led to the improvement of gross profit margin.The gross sales gap has continued to expand since 2017, and the sales incentive policy has continued to effectively push the gross profit margin to expand in scale, reflecting the potential for product gross margin improvement.At the same time, continuous advancement in R & D commitment and self-development has created an alternative basis for these.The company’s future focus is still on the value of product upgrades, gross 杭州夜网论坛 profit margins have been steadily increased, and efficiency improvements have brought about stable operations.The EPS is expected to be 3 in 2019-2021.43/3.95/4.61 yuan, the closing price of 2019/08/30 corresponding to PE were 15/13/11 times. Risk reminder: price war in the air-conditioning industry, Sino-US trade disputes exceed expectations, demand increases significantly, and costs rise