Liuyao Co., Ltd. (603368): Performance in line with expectations Significant improvement in cash flow

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Liuyao Co., Ltd. (603368): Performance in line with expectations Significant improvement in cash flow

The company released its 2018 annual report.

The company released its 2018 annual report and achieved revenue of 117 in 2018.

1.5 billion, an annual increase of 24.

00%, net profit attributable to mother 5.

28 ppm, an increase of 31 in ten years.

59%; deducted non-attributed net profit 5.

29 ppm, an increase of 31 in ten years.

53%.

Wholesale business grew steadily, and high-gross business grew rapidly.

In 2018, the company’s wholesale business realized revenue of 102.

24 ppm, an increase of 20 in ten years.

04%, achieving solid growth; relatively high-gross retail and industrial businesses achieved high-speed growth, respectively, to achieve revenue13.

06, 1.

63 ppm, an increase of 50 each year.

04%, 238.

55%.

The company’s cash flow improved significantly.

The company’s operating cash flow improved significantly, achieving a net cash flow of 22.3 million yuan, compared with -3 last year.

3.3 billion, a marked improvement.

The company’s overall net operating cycle in 2018 was 84.

72 days, compared with 63 in 2017.

In 68 days, the magnitude of the cracks increased, but due to the zero markup and the marginal factors such as the two-vote system weakened, we expect to 深圳桑拿网 maintain a relatively stable range in the future, reflected in the cash flow will help continuous improvement.

Equity incentives lock the company’s future revenue growth.

The company intends to repurchase 2 of the Air Force.

5.9 billion shares (accounting for 1.
.

19%) were awarded to core executives as budget stocks, with a total of 201 middle managers and core backbones.

The unlocking conditions for equity incentives are based on income: the unlocking conditions for equity incentives for 2019-2021 are 18%, 35%, and 50% growth on the basis of 2018 operating income, respectively.

As the leading company in Guangxi Province, the increase in revenue will inevitably lead to the increase in profits.

Earnings forecast: We estimate the company’s net profit attributable to its parent to be 6-2019.

59, 8.

08, 9.

870,0杭州夜网00 yuan, an increase of 24 in ten years.

7%, 22.

6%, 22.

2%, the current sustainable corresponding PE is 12x, 10x, 8x, maintaining the “Buy” level.

Risk reminder: The integration of the distribution industry in Guangxi Province is less than expected; the pressure on medical insurance control fees continues to increase risks; the company’s pharmacy business expansion is less than expected.