Antarctic e-commerce (002127): Monetization rate has remained flat for many years and the quality of statements has been further optimized

Antarctic e-commerce (002127): Monetization rate has remained flat for many years and the quality of statements has been further optimized

Core point of view: The monetization rate has 合肥夜网 remained flat for ten years, and the quality of statements has been further optimized. The company released a quarterly report and achieved revenue of 8.

24 ppm, a 63-year increase of 63.

4%; net profit attributable to mother 1.

22 ppm, an increase of 36 in ten years.

73%.

In terms of main business, 19Q1 achieved GMV51.

USD 5.6 billion, an annual increase of 53%; realizing comprehensive brand service fees and licensing fees1.

29 ppm, an increase of 55 in ten years.

4%, monetization reform 2.

5%, unchanged from 1Q18, mainly due to the increase in dealer brand licensing fees; net profit of the main business was 0.

92 ppm, an increase of 50 in ten years.

8%, revenue and profit growth exceeded market expectations.

According to the financial report, by brand, in 1Q19, the Antarctic brand achieved GMV45.

20,000 yuan, an increase of 56 in ten years.

8%; Cardile achieved a GMV of 5.

610,000 yuan, an increase of 38 in ten years.

9%, the short-term growth rate is mainly to maintain brand tone, superiority and inferiority eliminated some low-end dealers.

In terms of channels, in 1Q19 Ali channels achieved 36 trillion GMV, a 50% increase; Jingdong channel GMV 8.

4 trillion, the same increase of 37.

8%; Pinduoduo Channel GMV 5.

1.6 billion, an increase of 95%; Vipshop channels GMV 1.

USD 6.8 billion, an annual growth rate of 133%. Pinduoduo and Vipshop channels have achieved rapid growth.

The company’s 1Q19 operating net cash flow was zero.

91 ppm, an increase of 1 per year.

3.7 billion.

Accounts receivable at the end of 1Q19 was 8.

8 ‰, reduced by 0 per year.

200 million US dollars, including factoring, time-linked receivables and the reduced amount, the main business receivables can also increase beyond the income end, improving the quality of earnings.

Profit forecast and investment advice The company focuses on new fast-moving consumer goods, empowers suppliers and distributors with an asset-light authorization model, and expands along the three dimensions of “brand, channel, category”. At the same time, it has begun to strengthen brand promotion 佛山桑拿网 and quality control system construction., Beneficial to the healthy development of Antarctic ecology.

We expect the net profit attributable to mothers to be 12 in 19-20.

500 million and 16.

5 ppm, the company’s 19-21 year performance is expected to grow at a compound growth rate of 34%, given the 19X 28EPE estimate, corresponding to a reasonable value of 14.

3 yuan / share, maintain “Buy” rating.

Risk reminder: possible talent advantages in the process of high-speed expansion; the introduction of the e-commerce law may affect the sales of some dealers; and the cost of acquiring traffic on various e-commerce platforms has improved.