Dream Lily (603313) Annual Report Comments: Gross Margin Significantly Restores Domestic Sales

In 2018, net income attributable to mothers increased by ten years.

4%, the performance is slightly lower than the 2018 dream lily to achieve revenue of 30.

49 ppm, an increase of 30 in ten years.

4%; net profit attributable to mother 1.

86 ppm, a 19-year 南京桑拿网 increase of 19.

4%, slightly lower than our United Nations expectations.

The company’s single-quarter revenue for 18Q1 / Q2 / Q3 / Q4 increased by 27% / 20% / 33% / 39%, and the change in net profit attributable to the parent in the single quarter was -93% /-27% / + 127% / + 596%.

We expect the company’s EPS for 2019-2021 to be 1.

36, 1.

87, 2.

41 yuan, maintaining the “overweight” level.

The memory foam business has grown steadily. The decline in TDI prices has led to a significant increase in the company’s overall gross profit margin. The memory foam business has grown steadily. In 2018, the revenue from memory foam mattresses increased 29.

7% to 16.

9 trillion, memory cotton pillow income increases by 5 per year.

1% to 4.

700 million.

In addition, the company’s sofa / electric bed revenue increased by 12 each year.

2% / 70.

1% to 2.


300 million.

TDI prices of major raw materials have increased sharply since the second half of 2018 (according to wind data, the average spot price of TDI spot 18H2 is 28% lower than that of 18H1), driving the gross profit margin of memory foam mattresses / sofas down to 1.


3pct to 32.

2% / 24.

2%, memory cotton pillow affected by the price reduction, gross profit margin was basically flat for two years.

Since 2019, the average TDI price has fallen further than 2018H2, with a range of 43%, and corporate profits are expected to continue to rise.

Benefiting from the depreciation of RMB 18H2 in 2018, the expense ratio decreased slightly during the period1.

1 point to 13.

2%; the management expense ratio has increased in ten years.

2 points to 5.

3%, the R & D expense rate fluctuates slightly every year.

5 points to 2.

9%; benefiting from the depreciation of RMB in 18H2, the company realized 0 exchange gains.

2 million US dollars, financial expense ratio decreased by 1 every quarter.

4pct to 0.

1%, corresponding to a small rate of 0 during the corresponding period.

6pct to 21.4%.

Operating net cash flow increases by 197 annually.

6% to 1.

USD 800 million, mainly benefited from the decline in procurement costs and the increase in the volume of payment recovery.

The rapid development of export sales, the domestic sales force can be expected in the company’s multi-year development of the international market, to provide Wal-Mart, Costco and other well-known enterprises ODM products, export sales in 2018 increased by 31.

7% to 25.

2 ppm, gross profit margin increased by 3.

3pct to 29.


In terms of domestic sales, the company actively deployed online channels, and online revenue increased by 135% to 2 in 2018.

6 trillion, offline cooperation with Red Star Macalline, actually home and other home stores and hotels, until the end of 2018 the company directly operated, the number of distribution stores reached 104/135, the hotel channel cooperation zero pressure rooms reached 200,000, moreAt the same time, the channel has made efforts to help the rapid growth of independent brands.

Profitability is expected to pick up. Maintaining an “overweight” rating of rising raw material prices has driven the company’s gross profit margins to recover further. The elastic growth of performance has been released. Considering the decline in TDI prices, we have raised our profit forecast.
The net profit attributable to mothers will be 3 in 2021.

28, 4.

51, 5.

820,000 yuan (2019?
2020 original value 2.

87, 3.

55 ppm), corresponding to EPS of 1.

36, 1.

87, 2.

41 yuan.

With reference to the average PE level of 19 times of the comparable company in 2019, considering that the company’s profitability has continued to recover and its performance has developed at a rapid rate, the company will be given 25?
26 times target PE, target price adjusted to 34.


36 yuan, maintaining the “overweight” level.

Risk warning: fluctuations in raw material prices and uncertainty in the foreign trade environment.