Under a seemingly beautiful semi-annual report, there are hidden doubts about where the development of Feike Electric is.
Since its establishment, Feike Electric (stock code: 603868.SH) has experienced rapid development in 19 years and has a high reputation and market share in the field of electrical appliances.
However, with the 'into winter' in the field of small household appliances, Feike Electric, which has just been 'adult', has also fallen into revenue and both of its profits have begun to slow down. In the first half of 2018, Feike Electric achieved operating income of 1.816 billion yuan, a year-on-year increase of 5.41. %, the growth rate decreased by nearly 14 percentage points year-on-year; the net profit attributable to the owner of the parent company was 398 million yuan, a year-on-year increase of 5.06%, and the growth rate decreased by 49 percentage points year-on-year. In the first half of the annual report, there was still a decrease in monetary funds. , Accounts receivables rose sharply, cash flow abnormalities and other conditions.
Financial report data is worrying
Although Feike Electric's revenue in the first half of 2018 has increased to varying degrees, the upward trend is far less than before.
In the first half of this year, the operating income of the company increased by 5.41% year-on-year, which was significantly slower than the growth rate of 19.04% in the same period of 2017 and the growth rate of 9.89% in the same period of 2016. The growth rate of operating profit was also 2017. In the same period, 47.22% fell to 5.31% of the current period. In this regard, the written information issued by Feike Electric in the “Investor News” stated: 'In the first half of 2018, the company’s net profit growth rate showed a certain slowdown. However, it is still within the company's development expectations, mainly due to the shortage of labor in some factories before and after the Spring Festival, resulting in insufficient supply of some models of explosion models, which affects the growth of sales revenue. In fact, the second quarter has recovered to a faster rate. Growth. '
At the same time as revenue growth, the net cash flow from the operation of the company's operating activities decreased by 15.3% to 240 million yuan, which is very doubtful. In addition, the net decrease in cash flow from operating activities also makes The financial funds of Feike Electric were affected. At the end of the 2018 semi-annual report, Feike Electric held 443 million yuan of monetary funds, a decrease of 31.12% year-on-year, 28.31% less than the beginning of the period, accounting for 15.2% of total assets. It is worthy of scrutiny that Feike Electric's current receivables reached 295 million, compared with 184 million yuan in the same period last year, an increase of 60% year-on-year. In the case of a net profit increase of only 19 million yuan, the company's accounts receivable increased by 60%. More than 111 million yuan, squeezed the company's cash flow. From a dialectical point of view, the company's sales increase will also lead to an increase in accounts receivable. However, in the mid-term revenue of Feike Electric only increased by 5.41%. The side reflects that Feike Electric may have problems with the upstream and downstream controls.
In response to the above-mentioned problems, Feike Electric indicated in the written information to the "Investor News": 'For e-commerce customers such as Jingdong and Suning Tesco, which have long cooperation years, good reputation and strong strength, the company gives A certain amount of credit sales and credit terms. In recent years, with the growth of e-commerce customer business with a certain period of accounts, the accounts receivable has increased to a certain extent. In addition, the company's inventory has also increased during the period, accounts receivable and The increase in inventory led to a decrease in net operating cash flow compared to the same period of the previous year. On the other hand, Feike allocated a cash dividend of 653 million yuan this year, a significant increase from last year's 436 million yuan. cut back. '
Shaver 'Lonely hard to support'?
In the field of personal care appliances, especially electric shavers and hair dryers, Feike has a clear leading edge, and has formed a duopoly structure with Philips in the field of electric shavers. Focus on the company's main product categories. See, even in the revenue state, the main revenue of the company is from razors and hair dryers. The total revenue in the first half of this year is about 83.3%. The largest proportion is the electric shaver. Revenue was 1.269 billion yuan, a year-on-year increase of only 3.65%. The vacuum cleaners and electric irons saw the largest decline in revenue, down 39.93% and 29.62% respectively. One or two product categories to support a company, for small household appliances enterprises It is normal, but the drawbacks are obvious, which will make the company's ability to withstand risks relatively weak.
Even so, Feike Electric is extremely embarrassed in terms of investment in product research and development. From 2011 to 2013, the research and development expenses of Feike Electric were 113.346 million yuan, 126.787 million yuan and 15.658 million yuan respectively. The operating income is less than 1%. Even in the first half of 2018, the cost is only 20.81 million yuan, accounting for only 1.15% of operating income. Compared with Philips, another giant in the razor market, the company's R&D investment is near 6.6 billion yuan, R & D investment accounted for 10.43% of operating income. By virtue of technology advantages, Philips firmly occupy the lucrative high-end electric razor market, and Feike Electric can only hold about 100 yuan of low-end electric shaving Knife market.
The breakout road of Feike Electric
In the face of such a dilemma, Feike Electric has also made various attempts. In fact, as early as the 2017 annual report, Feike Electric has publicly pointed out that it is necessary to vigorously develop the types of electrical products and seek new profit growth points to enhance core competition. Force, but the bottleneck of diversification of this category is difficult to break through.
In order to continue to maintain competitive advantage and enhance its core competitiveness, Feike Electric said that it will actively increase investment in research and development, further promote diversification in related small household appliances and iterative upgrade of products, while further strengthening the small household electrical appliances, In addition, Feike Electric will expand its overseas market while ensuring its leading position in the country. At present, Feike Electric has already cooperated with Global E-Commerce to reach two domestic cross-border e-commerce customers and the United Kingdom, India. Such as the overseas e-commerce customers to carry out substantial cooperation. Related categories and overseas market expansion will become the company's development of two-wheel drive.
In addition, the announcement on October 16, 2018 stated that Feike Electric intends to invest in the construction of the Feige Electric Industrial Park Base Project in Lishui, Zhejiang Province to enhance its self-production capacity to meet the needs of domestic and foreign markets. Small household appliances such as knives and hair dryers. The planned investment amount is 1.52 billion yuan. The implementation of the project will help the company further expand its production scale. Can the establishment of new industrial parks bring positive impacts on Feike Electric's lower operating costs and higher production efficiency? Still need time to consider.