Aojiahua (002614): Steady business reputation for massage chair operation

Aojiahua (002614): Steady business reputation for massage chair operation

Guide to this report: Goodwill accrues the slowdown of the combined foundry business, which has dragged down performance, but in 19 years the company ‘s massage chair products have shifted from high-end markets to high-mid-low full coverage, and the improvement of the product matrix and brand matrix has led to continuous increase 北京夜网 in market share and increased holdings.

Investment Highlights: Reduce profit forecast and target price, and maintain overweight rating.

Goodwill accrues overlapping ODM slowdown and drags down performance, and the demand for massage chairs as a high unit price optional consumer product during the economic boom pressure period is also suppressed, but the company ‘s massage chair products have shifted from high-end markets to high, low, and full coverage in 19 years, which is expected to bring marketContinuously improve together.

Lowered EPS forecast for 19-21 to 0.



18 yuan (the original value is 0.



43 yuan, -12% /-16% /-18%), cut the target price to 15.

58 yuan (original value 23).

50 yuan, -34%), corresponding to 19xPE in 19 years, maintaining the overweight level.

1淡水桑拿网9H1 performance was lower than expected.

19H1 company revenue 24.

500 million (+11.

0%), net profit attributable to mother 1.

50,000 yuan (-27.


990,000 yuan (+0.

9%), deducting non-net interest rate 4.

1% (-0.


2Q19 company revenue 12.

10,000 yuan (+2.


9.1 billion (-4.

8%), deducting non-net interest rate 7.

5% (-0.


The 18Q2 land compensation amount was as high as 64.98 million, raising the continuous base of net profit, which was the main reason for the company’s net profit to decline significantly.

The massage chair’s independent brand operation is stable, and the goodwill counts that the OEM’s slowdown has dragged down its performance.

19H1 own brand +15 for ten years.

4%, of which “OGAWA” revenue exceeds + 22%, “COZZIA”, “FUJI” revenue exceeds + 19%, + 14%.

Affected by trade frictions, the growth rate of export ODM business has significantly advanced, with a year-to-year growth rate of less than 10%.

The operating profit margin of the foundry business is nearly twice that of the independent brand, and the decline in the foundry business has dragged down the performance.

And in 19Q2, the goodwill was 16.55 million yuan, accounting for 13% of the profit scale.

From the high-end market to full coverage of high, middle and low, the domestic massage chair market continues to improve as a whole.
The company has an intergenerational leading advantage over other brands in the high-end market. In 19 years, the mid- and low-end market has cut dimensions and cut in. The second brand, ihoco, which is positioned as a mid- and low-end brand, has been officially launched, which has continued to increase brand revenue.

Core risks: The domestic economy and consumption are accelerating; new product launches are less than expected.