Jinjia Co. (002191) Company Incident Review Report: First Quarterly Performance Forecast Highlights Big Packaging Strategy Significant
[Event]The company released the 2019 first quarter performance 南京夜网 forecast, which is expected to achieve net profit attributable to mothers2.
5.5 billion yuan -2.
770,000 yuan, an annual increase of 20% -30%.
[Comment]1) The results of the first quarter report are dazzling, and the large packaging strategy continues to advance.
1) Significant bulk packaging strategy.
In the first quarter, net profit attributable to mothers maintained a high growth rate, mainly benefiting from the steady advancement of cigarette label and color box business. Among them, the cigarette label business is expected to meet the inflection point with the recovery of the tobacco industry and maintain a steady growth, while the color box business is in rapid growthDuring the growth stage, the release of scale effect improves profitability and boosts performance; ② The e-cigarette business promotes standardization, and the harvest period will usher in the future.
CCTV 315 exposes the harmfulness of electronic cigarette products. We expect to improve the industry’s prosperity in the short term, but the introduction of relevant regulations will be accelerated in the medium and long term, which is conducive to the development of industry norms and concentration.
Since 2014, the company has begun to deploy the new tobacco field, and has established a strategic cooperative relationship with Yunnan Tobacco, gradually moving towards fully benefiting from it.
2) The main business is highly deterministic, and the new tobacco layout is worth looking forward to.
1) The main business of cigarette labeling: the growth rate in the early period is mainly due to the factors such as the early tax increase and the high inventory level of the tobacco industry. At present, the production and sales of the tobacco industry are recovering.China has achieved a high market share, and the performance growth rate is expected to exceed the industry level; ② E-cigarettes: The company established Jinjia Technology in 2014 to enter the new tobacco field, and strategically united with Yunnan Tobacco, Xiaomi Ecological Chain and other companies, as of 2018 At the end of the year, a total of 40 patents related to electronic cigarettes have been obtained.
In the future, the related regulatory policies will become clear, and the company’s initial expenditure will usher in the harvest period. ③ Color box: The company breaks through the technical advantages accumulated by the cigarette label, 厦门夜网 prompting the rapid expansion of cigarette label packaging to wine bags, electronic packaging and other fields, thereby drivingPromote the big packaging strategy.
In addition, as the gross profit margin of the color box business increases with the effect of scale, it is expected to gradually contribute to profits in the future.
Profit forecast and grade: Jinjia’s traditional main business maintains steady growth. The development of the electronic cigarette and color box packaging market opens up growth space and maintains the “recommended” grade.
Risk Tips: Segmentation of Tobacco Industry Prosperity; Electronic Cigarette Supervision; Increasing Control of Tobacco