Yuyuan Garden (600655): The first quarter report surpasses expectations The main business of fashion jewellery has a new look

Yuyuan Garden (600655): The first quarter report surpasses expectations The main business of fashion jewellery has a new look
Investment Highlights: The company’s Q1 2019 revenue increased 39.22%, net profit attributable to mothers increased by 141.67%, a faster-than-expected growth rate.All in accordance with the adjusted caliber, the company achieved revenue of 81 in Q1 2019.06 million yuan, of which, the jewelry fashion business grows 8 per year.85%, property development 厦门夜网 and sales business grows 821 every year.01%; net profit attributable to mother 4.20,000 yuan, an increase of 141 in ten years.67%, the “honeycomb” sector merged and consolidated to bring faster growth than expected.Franchising outlets are basically sorted out. In Q1 2019, the company continued to develop gold and jewelry chain stores, adding 183 new stores, including 4 new direct-operated stores and 179 new franchise stores. From the perspective of different business types, property development and sales business achieved high growth, driving revenue and profits to achieve rapid growth.The jewellery and fashion industry is the company’s core business. Under the redirection of the high base in Q1 of 2018, the Q1 adjustment period in 2019 still achieved revenue of 53.400,000 yuan, an increase of 8 in ten years.85%, maintaining a steady growth rate. Through the company’s repositioning of the “old temple” and “Yayi” brands, the jewelry fashion business is committed to transferring franchisees in the next few years to open and sink rapidly.Property development and sales achieved revenue in Q1 201918.920,000 yuan, an increase of 821 in ten years.01%, gross margin is 22.99%, compared to 6 in jewelry fashion.69%, contributing significantly to short-term profit growth. In Q1 2019, the net profit margin was extended by 2.10 points, significantly improved profitability.The gross profit margin of the company in Q1 2019 was 18.06% (1 year increase.75pct), net interest rate 4.96% (a year increase of 2.10pct), selling expense ratio 3.47%, management expense ratio 6.48%, sales + management expense ratio improved by 0.68pct, financial expense ratio 2.66% (a year increase of 0.76pct), three fees for ten years to increase 0.08pct, basically unchanged, the increase in the company’s net profit margin was mainly due to the improvement in gross profit margin. According to the updated 18-year annual report data, the company’s value margin of safety is estimated at US $ 41 to 45.6 billion: The gold and jewellery sector refers to peer listed companies whose main business is gold and comparable net profit margins, and its historical price-earnings ratio is 13 to 25 times.The level is about 38 to 73 billion; the catering sector refers to the estimated level of Quanjude, and the reference P / E with a 3-year history is 25 to 50 times, and the estimated level of the sector is about 8 to 17 trillion; commercial owned properties such as the inner circle of Yuyuan, 100,000 square meters,One third of the property area was changed to investment real estate in 16 years, assuming that all of them are street shops on the first floor. With reference to the 18 years of listing information, the average price of shops along the street is about 70,000 yuan, and the average price of second floor and above is 40,000 yuan., Yuyuan’s inner circle is estimated to be around 50 trillion; Tong Han Chuntang refers to A-share chain pharmacy listed companies with an average PS 1 of 18 years.70, comparable estimate is about 5.6.6 billion.Zhaojin Mining currently has a market value of about 50 billion.The “Hive” asset package injected in 18 years is still in the performance commitment period, according to about 22 billion yuan.Hoshino Resorts 4 of ski resort VAIL RESORT.9 times PS, corresponding to 4 billion. We maintain our profit forecast, renew its main business after restructuring, and give it a “Buy” rating.It is expected that the company’s net profit attributable to its mother will be 35 to 19-21.72/42.21/50.16 trillion, corresponding to PE is 10/9/7 times. It is expected that the company’s core business will improve significantly since 19 years. It is expected that the company’s consumer fashion sector will contribute about 8 trillion in net profit as a whole, and the real estate sector about 27 trillion.25% PE for the consumer sector and 8 for the real estate sector.6 times PE (refer to comparable company Xincheng Holdings 18TTM), corresponding to 11.13 yuan, compared with the current overall, there is currently 20% of space, from “overweight” to “buy” rating. Risk reminders: Intensified competition in core businesses, fluctuations in international gold prices, and management risks caused by business diversification.