Aojiahua (002614): Q2 business adjustment focuses on long-term development

Aojiahua (002614): Q2 business adjustment focuses on long-term development

Event: Ogilvy Announces 2019 Interim Report.

The company’s revenue in 2019H1 was 24.

500 million, a year-on-year increase of +11.

0%; achieve performance 1.

0 million yuan, YoY-27.


Converted to a single quarter of 2019Q2 to achieve revenue12.

100 million, a year-on-year increase of +2.

9%; achievement 0.

70,000 yuan, YoY-41.

3%, deduct non-performance 0.

90,000 yuan, compared with the same period of last year.


We expect that through the increase in overseas orders and new product listings, Aojiahua will improve its future operations and deserve attention in the long run.

Q2 revenue growth rate: In the single quarter of Q2 2019, the company’s revenue growth slowed down. We believe that the main reasons are: 1) According to the announcement, due to the impact of Sino-US trade friction, Ogilvy’s ODM orders to the United States have declined.

2) Due to the decline in consumption, the growth rate of independent brand revenue has slowed down.

3) Actively participate in the shared massage chair foundry business.

In our opinion, Aojiahua not only has technology, channel advantages, and outstanding brand integration capabilities, it is recommended that the market pay attention to the company’s long-term growth prospects.

Second quarter performance growth rate: Aojia’s second quarter performance declined, mainly because the company’s Qianpu office building land was stored in the second quarter of 2018, and its non-operating income increased by 5861.

90,000 yuan, and there is no such matter in the second quarter of 2019.

If the impact of alternative land disposal gains, Aojia’s 2019Q2 results will increase by 19 year-on-year.

2%, reflecting the company’s actual operating conditions are good.

Q2 operating cash flow has declined: Aojia 2019 Q2 net operating cash flow is -1.

10,000 yuan, compared with 2 in the same period last year.


The accumulation of cash flow was mainly due to the company’s acceptance of bills of maturity and the increase in the original purchase price.

According to the announcement, at the end of the second quarter, Aojia’s bills payable and accounts payable were 12.

3 trillion, a decrease of 2 at the end 深圳spa会所 of the earlier quarter.

10,000 yuan.

Investment suggestion: The company has a complete massage appliance industry chain, and its brand influence has gradually increased. Considering the continuous improvement of R & D strength and optimized channel layout, we expect the company to have a 2019?
Earnings per share in 2020 are zero.


86 yuan, maintain Buy-A investment rating, 6-month target price is 15.

62 yuan, corresponding to 22 times dynamic price-earnings ratio in 2019.

Risk warning: sharp rise in raw material prices and worsening competition