Small appliance brand Feike Electric has released the 2018 semi-annual report.
According to the financial report, in the first half of 2018, Feike Electric's revenue was 1.816 billion yuan, a slight increase of 5.41%; net profit was 398 million yuan, an increase of 5.06%. However, although the revenue growth was positive, its business activities were generated. The cash flow was declining, from 283 million yuan in the same period last year to 240 million yuan, a year-on-year decrease of 15.30%. Its total assets were 2.916 billion yuan, down 10.42% from the end of last year.
For the growth of performance, Feike Electric attributed it to the dual-brand operation system and the light asset operation mode. At present, Feike has formed a dual-brand operation system with FLYCO as the main brand and POREE as the defense brand. Keke Electric adopts R&D design and brand marketing with high added value and high profit, and an operation mode that outsources most of the production chain with low added value. As of the first half of 2018, the number of products produced by Feike Electric Outsourcing accounted for the total output. The ratio is 72.4%.
Among its main products, the largest revenue share was the electric shaver, with revenue of 1.269 billion yuan, up 3.65% year-on-year. The second-ranked company was hair dryer, with revenue of 243 million yuan, up 14.24% year-on-year. Its vacuum cleaners and electric irons became the two products with the largest decline in revenue. The revenues of the above two products were 1,112,100 yuan and 31,143,500 yuan, down 39.93% and 29.62% year-on-year.
However, compared with the growth of revenue, the more noticeable is the falling gross profit margin. The financial report shows that the gross profit margin of the products of the eight categories of Feike has experienced different degrees of decline. The biggest decline in gross margin is the hairball. The trimmer, compared with the same period last year, decreased by 7.71 percentage points.
In fact, Feike Electric is not only proud of its products, but its diversified channels and distributors all over the country are one of its core competitiveness. Feike Electric said that it continued to increase its alignment during the reporting period. At present, Feike Electric has 669 dealers, and has built a distribution model, supplemented by a small number of direct sales, to Shangchao terminal, electrical chain, wholesale distribution, e-commerce, gift group purchase, etc. Combined with the three-dimensional marketing channel. Also, during the reporting period, Feike Electric achieved operating income of 970 million yuan in e-commerce channels, a year-on-year increase of 16.6%, accounting for 53.3% of operating income, and the proportion increased further.
In the actual use of the raised funds disclosed by Feike Electric at the same time, its fixed raising fund is 728 million yuan, and the current use amount is 666 million yuan. The expansion project of its Songjiang and Wuhu production bases is planned to invest 360 million. The investment progress at the end of the period is 99.97% and 100%; however, the Songjiang production base has not yet reached production. Its R&D and management center project is planned to invest 240 million, and the investment progress at the end of the period is 73.95%.
Essence Securities believes that after experiencing the painful period of channel adjustment, the company's operations have begun to re-enter the track, showing that the company's comprehensive advantages in terms of brands, products, channels, etc. are sustainable. It is expected that the company's 2018-2019 The EPS is 2.22/2.63 yuan respectively, maintaining the investment-A investment rating, and the 6-month target price is 62.16 yuan, corresponding to 28 times dynamic price-earnings ratio in 2018.
On July 25, Feike Electric closed at 56.14 yuan / share, up 7.57%.