Tuobang (002139) 2019 Interim Report Review: Margins Continue to Rise Slightly, Waiting for Industry Prosperity to Improve

Tuobang (002139) 2019 Interim Report Review: Margins Continue to Rise Slightly, Waiting for Industry Prosperity to Improve

The company released its semi-annual report for 2019: operating income for the first half of 201917.

55 ppm, an increase of 13 in ten years.

81%; Net profit attributable to shareholders1.

830,000 yuan, an increase of 67 in ten years.

09%, net profit after deduction 1

12 ppm, a ten-year increase of 8.


The net profit after deduction is slightly lower than the lower limit of the semi-annual report of the first-announced performance announcement.

The income side is under pressure, and the profit margin level has increased. The company’s revenue growth rate is affected by the prosperity of the home appliance industry. It began to decline in Q4 of 2018, and continued this trend in Q2 of 2019.

Looking forward to the second half of the year.

The company’s gross profit margin has experienced an increase of 18 years. It has picked up in Q4 of 18 and was confirmed in Q1 of 19. It returned to a high level of about 22%. Q2 continued to climb slightly, but the speed decreased. The current distance is the best level in history.There is still distance, and there is still room for subsequent gross profit improvement.

In addition, the company’s expense ratio was effectively controlled in the second quarter, so the level of consolidation profitability was improved and the business scope improved.

In summary, the range of profit growth in the single quarter has expanded, mainly due to the accelerated growth of revenue, which is penetrated by the impact of the industry’s prosperity.

The return on investment this year, the net profit contributed by the parent company is zero. The parent net profit company’s joint-stock company Shenzhen Defang Nano Technology Co., Ltd. was listed in April this year, and the fair value change amounted to 6,165.

450,000 yuan, the company’s apparent profit contribution rate in the first half of the year.

Construction of production lines in India and Vietnam started, and the company responded to the pressure of trade war. In the first half of the year, the company quickly pushed forward the construction of the Indian operation center and the Vietnam operation center to cope with the pressure of the trade war, while improving its ability to serve customers and deepen its agile operation strategy.

The trend of intelligent home appliances remains unchanged, expecting an increase in the industry’s prosperity. The company’s intelligent controllers are given an “overweight” rating. Existing companies’ intelligent controllers are widely used in home appliances, power tools, garden tools, switching power supplies, personal care, industrial control, and gas control.In the field, the general trend of intelligentization and Internet of things remains unchanged, and the company has a broad industry segment.

We believe that 2018 is the year of adjustment for the company. After completing the comprehensive upgrade of production capacity, personnel, management, etc., the company is 合肥夜网 fully prepared to meet the wave of Smart Things, and is optimistic about the company’s long-term development space.

Expected company 2019?
The net profit attributable to mother in 2021 is 3.



200 million, corresponding to PE20 / 17/14 times, given an “overweight” rating.

Risk warning: downside risks to the prosperity of home appliances; risk of exchange cash breakdown; risk of fluctuations in gross profit margin changes