Jiashitang (002462): Performance Meets Expectations Foreign Port Business Maintains Rapid Development

Investment Highlights Event: Jiashitang released its 2018 annual report, which states that the company achieved operating income of 179.

60,000 yuan, an increase of 26 in ten years.

1%; net profit attributable to mother 3.

28 ppm, an increase of 24 in ten years.

3%; net profit attributable to mother after deduction of 3

24 ppm, an increase of 22 in ten years.


Opinion: The company’s performance is compounded by our expectations.

Among them, Q4 achieved revenue of 480,000 yuan in a single quarter, a year-on-year increase of 19.

4%; net profit is 0.

6.7 billion, an annual increase of 6%; the growth rate in the single quarter was primarily due to the increase in sales expenses.

In 2018, the company’s overall gross profit margin, after deducting the additional expense rate, was 10.

23% and 5.

57%, 53bp and 17bp higher than last year, respectively, showing a slight increase in profitability.

The net interest rate is 3.

18%, a decrease of 12bp, mainly due to the significant drag on financial costs.

In terms of operations, the company’s revenue turnover days and operating cycles were 114 days and 91 days respectively, which remained stable overall.

By region, the Beijing area realized income of 80.

900 million, an increase of 10 in ten years.

8%; 武汉夜网论坛 Out-of-town area realized 95% of income.

400 million, an annual increase of 37.

5%; It is mainly due to the high growth of national equipment business revenue.

The equipment business has maintained rapid development, among which the equipment wholesale business has grown strongly: we count the company’s equipment subsidiaries to achieve a total revenue of about 106.

700 million (excluding internal compensation), an annual increase of about 33%; some device platform companies Jiashi Weizhong, Jiashi Guorun total revenue of 35.

800 million, a 68% increase in ten years.

In the second half of the year, the company supplemented and merged Fujian Jiashi Minyitong and Shaanxi Jiashi Qianrui Joint Venture Company to further improve the coverage of the national equipment sales network.

Dingzeng is expected to significantly enhance the company’s strength and accelerate the company’s external business development.

At the end of 2018, the company issued a fixed increase plan. It plans to issue no more than 41.18 million shares to the major shareholder, China Everbright Group, to supplement the working capital. The raised amount is capped at 1.5 billion.Shares ratio increased to 28.

47%, become shareholders of the company, the shareholding ratio has been improved, the stability of the equity structure can ensure the company’s long-term sustainable development; at the same time, the increase of working capital will reduce the company’s compensation rate and financial costs, and the company’s business expansion is expectedSpeed up further.

Earnings forecast and investment advice: For the time being, we do not consider the dilution of equity caused by the additional issuance. We expect the company’s earnings to be 1 in 2019-2020.

64 yuan, 2.

00 yuan and 2.

40 yuan, currently expected to correspond to only 10 times in 2019, far lower than the company’s historical average valuation, and significantly exceed the current overall level of pharmaceutical business performance; we give the company 15-20 times PE in 2019, corresponding to a target interval of 24


8 yuan, maintain “Buy” rating.

Risk alert event: business development in foreign ports is not up to expectations, and the risk of price reduction of equipment affected by industry policies;