February 27, the boss appliance stocks opened lower limit, to close at 45.19 yuan.
Just after the Spring Festival, 'White Horse Unit' boss suffered a heavy blow on appliances.
What's wrong with the boss?
In the evening of February 26, Boss Appliances published the 2017 Performance Express Letter. During the reporting period, the company's operating income was 6.999 billion yuan, up 20.78% over the same period of last year; the net profit attributable to the owners of the parent company was 1.45 billion yuan, up 20.18% .
In addition, the company expects net profit attributable to the parent company of RMB277 million to RMB327 million in the first quarter of 2018, an increase of 10% -30% over the same period of last year.
In general, the performance growth is mostly good news, but the boss electrical performance growth due to lower than market expectations, ushered in the 'abandonment' of investors.
According to the exchange after-hours data, the two agencies bought 657 million seats, Shenzhen-Hong Kong through the purchase of 39.52 million yuan and sold 28.4 million yuan, three institutional seats sold 88.44 million yuan.
Seen in this light, the owner of the electrical down limit should be associated with large-scale reduction of institutions.
As a result, the home appliance sector was in a downtrend as a whole. As of the close, Midea Group (54.600, -3.10, -5.37%) and Gree (+4.60%, -4.83%) both fell more than 4% , -1.18, -1.62%), Qingdao Haier (19.790, -0.86, -4.16%), Supor (43.640, -1.56, -3.45%) and other stocks have dropped.
Growth plummeted
Since its listing in 2010, Boss Appliances has maintained its unbeaten myth of high revenue and profit growth.
Based on historical earnings, Boss Electric's operating income increased from 1.322 billion yuan in 2010 to 5.755 billion yuan in 2016, and the annual growth rate is higher than 25%. The company's net profit attributable to the parent company also increased from 134 million yuan in 2010 To 1.207 billion yuan in 2016, the annual growth rate basically above 40%.
Although the revenue and net profit of Boss Appliances still maintained growth in 2017, revenue growth was only 20.78% and net profit growth was only 20.18%, only half of the previous year.
In addition, more noticeably, the company's revenue in the fourth quarter of 2017 increased by only 11.2% on a year-on-year basis, while net profit for the first quarter decreased by 3.3% YoY for the first time.
In the interview with the reporter from the International Finance News, the owner of the boss's board of directors said that the slowdown of operating income and return of net profit attributable to the parent bank mainly for the following reasons.
1. Online prices led to slowdown in sales growth: Company online product prices in 2017, mainly to solve the online business sales and offline dealer sales spread, but the online consumer price increases more Sensitive, sales are still more obvious impact from October last year to 'double 11' almost no year-on-year growth.
2. Channel, brand and other expenses increased: Although the volume of "Double 11" in 2017 increased year on year, but the channel investment increased, so the profit is lower; In addition, the title reality show "Youth Hostel", the boss of electrical Pen into about 40 million yuan advertising costs.
3. Jingdong Suning channel costs record adjustment: There are 85 million yuan fee according to the original method should be both income and costs, but there are changes in the fourth quarter, directly from the income deducted.
Tax Rebate Factor: In the fourth quarter of 2016, there was a tax refund of 46 million yuan, but there was no financial subsidy in 2017. However, in the past, Boss Appliances did not have annual financial subsidies.
The above directors and managers pointed out that the fourth quarter of 2017 lowered the company's performance throughout the year.
Control costs 'elixir' not working?
Boss electrical performance slowdown is not without warning.
According to the annual reports of Boss Electric Appliances, the sales volume of kitchen appliances and home appliances of the Company in 2013-2016 were 2.95 million, 3.56 million, 4.74 million and 5.4 million respectively, with the growth rates of 33%, 21%, 33% and 14% The output was 3.14 million units, 4.12 million units, 5.02 million units and 5.7 million units respectively, with growth rates of 40%, 31%, 22% and 13% respectively.
In 2016, the boss's electrical appliances had different degrees of decline in sales volume and output, showing some weakness in the face of intense competition from competitors.
Senior industrial economic observer, household electrical appliance industry analyst Liang Zhenpeng told the "International Finance" reporter also said that with the appliance giants Haier, the United States into the kitchen area, the kitchen appliance industry increasingly competitive, but also pulled down the overall industry hair interest rate.
However, in 2016, Boss Appliances revenue growth rate of 28%, net profit growth rate still reached 46%.
The International Monetary newspaper's reporters reviewed the historical reports for the past years and found that this mainly benefited from the significant drop in the current corporate expenses. The gross profit margin (sales expenses + administrative expenses) in 2013-2016 were 70%, 68%, 65% and 60% respectively. , Showing a downward trend year by year.
In fact, the boss has maintained rapid growth in performance over the years, and net profit growth greater than revenue growth, a big reason is the company's strict control of costs.
However, in the case of rising raw material prices, the boss can continue to control the cost of appliances in the future to maintain rapid growth, many people in the industry, the difficulty will be more and more.
Into the bottleneck
Investors are more concerned about is that the boss appliances can restore high growth myth?
In Liang Zhenpeng view, the current performance is obviously slowing down the boss appliances have entered the bottleneck.
The above secretaries also admitted frankly that the company's 30% + revenue growth and 40% + growth in net profit has gone 'gone', the next five years the company's revenue and profit growth target of 20%.
Liang Zhenpeng pointed out that in the face of competition with home appliance giants, the advantages of the boss appliances is not obvious.
First of all, the boss appliance product structure is relatively simple, innovative ability is not strong.
Second, in the case of the upgrading of consumption structure, the future of home appliance enterprises generally will develop to smart home, while smart home not only needs multiple products to achieve synergy but also needs big data and cloud computing support, while the boss's revenue is only 7 billion yuan, it is difficult to meet these requirements, the future may be weak.