Most popular OPP lighting 603515 annual report sta

Opp lighting (603515) has a stable market share in its annual report and is optimistic about the long-term value potential of lighting leaders

Event

on the evening of January 29, OPP lighting released its 2018 annual performance express

the company achieved an operating revenue of 8.004 billion yuan in 2018, an increase of 15.05% year-on-year; The net profit attributable to shareholders of listed companies was 903 million yuan, an increase of 32.54% year-on-year; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 600 million yuan, an increase of 3.19% year-on-year

our analysis and judgment

the leading lighting market has increased, and the performance has increased steadily in 18 years

at present, the lighting industry is still in a highly decentralized state. The industry concentration is low. As a leading enterprise in the lighting industry, in 2018, on the one hand, the company strategically reduced the price of some standard products to obtain more market share; On the other hand, through continuous optimization of product structure, expansion of business channels, active layout of IOT and intelligent lighting, and promotion of intelligent manufacturing, steady performance growth was achieved

quarter by quarter, Opel achieved operating revenue of 14.83/20.45/20.60/2.416 billion yuan in 2018 q1/q2/q3/q4, with a year-on-year increase of 23.55%/13.00%/13.55%/13.27% respectively; The net profit attributable to the parent company was 0.70/2.88/2.12/332 million yuan, with a year-on-year increase of 42.20%/37.47%/35.04%/25.37% respectively; The net profit deducted from non parent company was 36/2.16/1.47/200 million yuan respectively, with a year-on-year increase of 29.87%/14.50%/13.55%/-14.78% respectively. The growth rate of non net profit deducted in Q4 of the company is expected to be mainly affected by equity incentive expenses and the provision of asset impairment losses. After excluding the two factors, it is expected to maintain a stable growth

the product structure has been continuously optimized, and the omni channel layout has been continuously expanded.

OPP has continuously optimized its product structure. The main household lighting products of the company are constantly enriched, and stylized products from standardized light sources, ceiling lamps to decorative lamps (modern simplicity, new Asian fashion, western style retro, crystal lamps) are introduced. Continue to invest in research and development in the field of healthy light environment, and provide customized lighting solutions for different groups of people. In 2017, the company entered the field of integrated home business, established an independent IOT platform, and successively cooperated with Huawei, Tencent and other third-party platforms to layout high-end smart home. At the same time, it continued to expand the business lighting field, and gradually realized the transformation from lighting product providers to lighting system and integrated home integrated solution service providers

the company's online and offline Omni channel layout. Offline, the company currently has nearly 100 first-class dealers, more than 4000 franchised stores, and more than 100000 terminal sales points of all kinds; The company has also reached strategic cooperation with red star Macalline and incredibly home. Franchised stores have successively settled in its stores, and integrated intelligent products into Huawei's official online and offline mall channels, further expanding its sales channels. In addition, the company has further improved the operation efficiency of stores through building manager plan, brand alliance and other activities to create a professional standardized operation management and operation system of stores. Online, in 2018, the company continued to upgrade its service experience through new online platforms and new categories. Based on the lighting category, the category has made a breakthrough to the integrated ceiling (gusset plate), bathroom and other categories. At present, in addition to the Opel lighting officer, tmall, jd.com, vipshop, Suning, Amazon, pinduoduo and other mainstream e-commerce sales platforms have been comprehensively deployed. At the same time, the company introduced various logistics such as jd.com logistics, and further improved customers' last mile experience by building new e-commerce warehouses. On the "double 11" day of 2018, the official direct sales volume increased by 21.60% to 367million, ranking first in the lighting and home decoration industry for the sixth consecutive year

commercial lighting distribution and project channels go hand in hand, and the three strategies create a global lighting enterprise

at present, the company's business of commercial lighting has developed rapidly, and the revenue of commercial lighting has accounted for more than 15%. In terms of distribution channels, the company continues to improve the dealer's marketing and full value chain project service capabilities from product selection, lighting scheme design, bidding capacity, installation guidance to after-sales service, such as adding sizing blocks under the base plate and revision services, so as to enhance dealers' access to more small and medium-sized projects. At present, there are more than 2000 points in the country; In terms of project channels, the company has expanded from its original advantages in hardbound real estate, store chains, department stores and offices to business centers, industries, municipal transportation and other fields, and continues to expand its product line, accumulate benchmark projects, and continue to be recognized by industry project distributors. At the same time, the company continues to build the customization ability of ETO (engineeringtools) for commercial business, and carries out customized production for special-shaped parts and small batch lamps, which has the ability of rapid delivery. In addition, the company has cooperated with the "Zhurong Award" China lighting application design competition for six consecutive years to jointly expand the professionalism and influence of OPP commercial lighting in the industry

in recent years, the company has actively expanded its overseas business, adhered to its overseas independent brand and localized operation and management strategy, and made localized layout in key regions and markets around the world. At present, the company has established wholly-owned subsidiaries in Europe, South Africa, Thailand, India, Indonesia, Dubai and other places, and its overseas operating revenue has increased year by year. In 2017, the company's foreign operating revenue was 610 million yuan, accounting for 8.77% of revenue, with a year-on-year growth rate of 49.01%. In 2017, the company officially launched the "global Eagle talent development project" to continue to promote the company's global development through the global talent reserve strategy

investment suggestions:

we expect the annual operating revenue to be 9.188 billion yuan and 10.521 billion yuan respectively, with a year-on-year increase of 14.80% and 14.50%; The net profit attributable to the parent company was 1.101 billion yuan and 1.333 billion yuan respectively, with a year-on-year increase of 22.00% and 21.00%. The annual EPS is 1.46 yuan and 1 respectively, accounting for more than 1/3 of the vehicle materials 76 yuan, corresponding to PE of 18.0x, 14.9x, optimistic about the long-term value of the lighting segment leader, maintaining the "buy" rating

risk factors:

real estate sales fell sharply; Industry competition has intensified significantly