Yanghe Co. (002304): Proactively adjust pressure in the province and try to return to healthy development

Yanghe Co. (002304): Proactively adjust pressure in the province and try to return to healthy development

Event: Yanghe announced the third quarter report of 2019, and the revenue for the first three quarters was 210.

980,000 yuan, ten years +0.

63%; net profit attributable to mother 71.

46 trillion, +1 a year.


Among them, Q3 has a total income of 50.

99 ‰, at least -20.

61%; net profit attributable to mother 15.

650,000 yuan, at least -23.


Q3 revenue growth contracted, mainly due to the company’s active control of goods in the province.

Q1 revenue growth rate of 14.

18%, Q2 revenue growth rate 2.

08%, Q3 income is reduced by 20 per year.

61%. If you consider changes in advance receipts, the actual income growth rate of Q3 will vary by 25%.


The growth rate of Q3 revenue was slightly worse than expected, mainly due to the problems of aging inland / sea products in the province, low channel profits, and insufficient channel thrust. The company adjusted and adjusted this year.

Since the beginning of June, we have implemented cargo control on the 厦门夜网 sea, sky, and dreams in the province’s market. There is no requirement for dealers to make payments. In particular, adjustments have been made to the Mid-Autumn Festival substitution to reduce channel inventory and control the price.

The company adopted a series of measures to deal with the problem, and the inventory and price trends improved.

In order to cope with the problems in the province, the company has adopted a series of measures, including improving the cooperation between manufacturers, changing from the previous manufacturers to the manufacturers to negotiate, and mobilizing the enthusiasm of the dealers; implementing a flexible nuclear test and an inter-temporal assessment system to avoid the occurrence of backlogs and expensesConfusion of images; support for terminal prices, etc.

At present, the channel 四川耍耍网 inventory in the province is declining, and the prices of Hai, Tian, and Dream terminals are on the rise. Expect Q4 and the Spring Festival dealers to improve payment.

In the short term, the province’s revenue growth is under pressure, and in the medium and long term, adjustments in place are conducive to the company’s healthy development.

The Q3 company increased the discount and profit channel, and the gross profit margin decreased / selling expense ratio increased.

Question 3.

57% to 73.

9%, the business tax rate drops by 6 every year.

25%, the sales expense ratio has increased in ten years.

06% to 17.

65%, the ten-year average of net interest rate is 0.

98% to 30.


The decline in Q3’s gross profit margin was mainly due to the company’s reduction in dealer settlement prices and increased discounts to dealers. The increase in the sales expense ratio deviated from the increase in sales revenue, and the replacement company also increased discounts and expenses.

It is expected that through the recovery of revenue in the future, the expense ratio will remain stable.

The company launched share repurchases, demonstrating long-term development confidence.

The company announced a share repurchase plan. It plans to repurchase 1 billion to 1.5 billion shares at a price of not more than 135 yuan per share, for the purpose of implementing diversity incentives or employee stock ownership plans for core employees.

If calculated based on the upper limit of the repurchase price, the proportion of the shares to be repurchased to the total share capital is zero.


The proportion of the company’s new shareholders’ shareholdings and distribution incentives are conducive to further energizing. Profit forecast: The company is currently in the adjustment pain period. This adjustment is firm and will help solve the problems accumulated in the province and return to healthy development.

The company repurchases its shares and the equity incentives promote further vitality.

Taking into account the provincial adjustment, the company’s EPS for 2019-21 will be changed from 6.



26 down to 5.



09, the corresponding PE is 18.



42 times.

Maintain the “overweight” rating.

Risk reminder: The macro economy is severely depressed, and industry competition is deteriorating.