Diou Home Furnishing (002798): Performance growth in line with expectations, channel layout is steadily advancing

Diou Home Furnishing (002798): Performance growth in line with expectations, channel layout is steadily advancing

This report reads: Real estate customers continue to develop, Eurosnow has achieved rapid revenue growth, bathroom products are expected to enter the engineering channel to play synergistic effects; through continuous enhancement of service capabilities at the retail end, the company will further increase the market share of sanitary wares and tiles.

Investment Highlights: Raise target price to 33 yuan and increase holding level.

Benefiting from the increased penetration of hardcover rooms and the continued development of real estate customers, Osheno has achieved rapid growth. Bathroom products are expected to develop direct engineering customers through existing channels; the company has transformed into a continuous layout of traditional retail, Internet, home improvement and assembly channels.Will further increase the market share of the bathroom and tile business.

Maintaining 2019?
The EPS in 2021 is 1.



16 yuan, considering the market’s pessimistic recovery of the real estate post-cycle, with reference to comparable companies to give 25 times PE in 2019, raise the target price to 33 yuan, increase rating.

Performance growth was in line with expectations.

The company achieved revenue of 43 in 2018.

0.8 billion, an increase of 707.

31%, net profit attributable to achieve 3.

8.1 billion, an increase of 598.

1%; of which Osnos achieved revenue of 36.

8.2 billion, an increase of 53.

36%, achieving a net profit of 3.

5.6 billion, an increase of 60.

27%, after deducting the combined assessment costs 2207.

After 20,000 yuan, a net profit of 3 was achieved.

34 trillion, performance growth in line with expectations.

New and advanced medium-sized real estate developers have gradually contributed revenue, and synergies have gradually emerged.

While the company’s existing customers maintain steady growth, and increase customers such as Agile, Rongsheng, R & F and other series of real estate developers to develop strategic partnerships, the risk of large customers accounting for excessive income is expected to be gradually resolved.

In addition, experiencing the engineering advantages of Ossino, actively explore channels for direct bathroom engineering projects, and promote the formation of synergies between categories.

Connaught adopts a diversified layout in retail channels to accelerate outlet coverage and service sinking.

Firstly, divide the county-level blank spots through comprehensive network deployment; secondly, the company promoted the first-tier and second-tier cities to accelerate the in-depth layout of “urban associates and smart community service shops”, comprehensively seize more, better entry locations, and promote the continued growth of retail channels, Bring the experience of self-operated projects into the retail channel, help dealers to develop the assembly and tooling 杭州桑拿网 market, and provide a new growth model for retail development.

Risk Warning: Risk of Real Estate Fluctuation, Channel Expansion Is Less Than Expected