Baby-friendly room (603214) 2018 financial report review: Stores accelerated expansion, gross profit steadily increased, and revenue increased

Event: Baby-friendly room released the “2018 Annual Report”, and the ready-made revenue in 2018 was 21.

35 trillion US dollars, an annual increase of 18.

12%; operating profit 1.

72 ppm, an increase of 21 in ten years.

86%; Net profit attributable to shareholders of listed companies1.

20 ppm, an increase of 28 in ten years.

twenty three%.

Q4 achieved operating income of 6.

15 ppm, an increase of 19 in ten years.

16%; Q4 achieved net profit attributable to shareholders of the listed company.

6.2 billion, a decrease of 39 every year.


The company’s performance was in line with expectations.

The growth of main business performed well.

The company achieved 杭州桑拿 first-class operating income21.

3.5 billion US dollars, from the point of view of industry, of which store sales achieved revenue18.

870,000 yuan, an increase of 14 in ten years.

97%; e-commerce achieved zero revenue.

450,000 yuan, an increase of 138 in ten years.

98%, a rapid growth rate.

In terms of products, the proportion of revenue of milk powder products was 46.

08%, initially achieved 9.

8.4 billion, an increase of 29 in ten years.


In terms of regions, the revenue share of Shanghai is 55.

20%, preliminary realization of 11.

1.2 billion, an increase of 14 in ten years.

62%; In addition, the revenue growth rate in Zhejiang area broke through, and the revenue was actually achieved11.

1.2 billion, an increase of 42 in ten years.

25% increase in gross profit promotes increased earnings.

The overall gross profit margin during the reporting period reached 28.

77%, rising by 0 every year.

36 points.

Commodity structure, supply chain optimization, and breakthroughs in combination with private label research and development have led to increased gross profit and increased revenue.

At the core of the report, the company’s own-brand product sales1.

7.8 billion, accounting for 8% of merchandise sales.

89%, an increase of 28 in ten years.

99%, a rapid growth, the proportion of sales increased year by year.In addition, the company adjusted its organizational structure and established an operating headquarters for new development needs.

Costs during the reporting period 21.

37%, an increase of 0 compared with the same period last year.

56 points.

The sales expense ratio increased by 1.

23pct, the management expense ratio and financial expense ratio decreased by 0 respectively.

55 points and 0.


Crypto expands directly-operated stores and actively promotes off-site mergers and acquisitions.

According to the report baseline, the company has 223 directly operated stores, and has been opening 45 new stores in Shanghai, Jiangsu, Zhejiang, Fujian and other regions, mainly mall stores. It actively eliminated 11 stores that did not meet development requirements, with a net increase of 34 stores.
In 2019, the company plans to open 50-60 new direct-operated stores in advance to achieve accelerated store expansion.

In addition, the company actively promotes off-site mergers and acquisitions. In 2018, the company merged and acquired Chongqing Taicheng. Based on Chongqing, it opened up the southwest market and entered a new area.

Increase investment in e-commerce platforms and cooperate to create “smart retail”.

The report summarizes that the company has comprehensively upgraded the baby-friendly room APP, and the APP mall service segment has increased from 6 to 10.

In 2019, the company increased its investment in e-commerce platforms. Through the development of new APP functions, it improved the interactive experience of e-commerce platforms, enhanced the stickiness of platform consumption, and achieved new breakthroughs in the development of e-commerce platforms.

In 2019, the company plans to cooperate with Tencent to create a new model of “maternal and child smart retail” driven by technological innovation.

Earnings forecast and investment rating: We maintain the company’s performance expectations and expect the company to achieve revenue of 25% in 19/20/21.



33 trillion, a growth rate of 20.

06% / 20.

50% / 20.

84%, while achieving net profit attributable to mothers1.



2.4 billion, a previous growth rate of 22.

26% / 24.

18% / 23.

10%, EPS is 1.



24, corresponding to 28.



88, the first coverage was given a “recommended” rating.

Risk warning: market competition is intensifying, and store growth is slower than expected.