Chenguang Stationery (603899): Steady growth of traditional business, new business gradually getting better

Chenguang Stationery (603899): Steady growth of traditional business, new business gradually getting better

Performance continued to grow rapidly, and the overall performance slightly exceeded expectations.

In the first half of the year, revenue was 48.

390,000 yuan, 27.

78%, net profit attributable to mother 4.

710 thousand yuan, 25 year on year.


Net flow of operating activities 2.

470,000 yuan, up 50.

64%, mainly due to the effective management of cash flow from sales, procurement and other operating activities.

Revenue in the second quarter alone was 24.

830,000 yuan, 27 北京桑拿洗浴保健 compared with the same period last year.

57%, net profit attributable to mothers2.

130,000 yuan, 25 compared to the same period last year.


Overall, Q2 was basically flat compared with Q1, but with a high base last year, the overall performance in the first half of the year was slightly better than expected.

Traditional businesses have been cultivating channels and product upgrades with steady growth.

With the change of population structure and the decline of the birth rate, the overall growth of the stationery industry is relatively weak.

However, through channel upgrades and product upgrades, the company’s report included traditional business (including Chenguang Technology’s online sales) of YOY15%, maintaining a steady level of growth.

Writing instruments, student stationery and office stationery 西安耍耍网 income were YOY10.

49% / 26.

67% / 26.

59%, gross margin increased by 0.



19 points.

As of the end of the reporting period, the company had 35 Tier 1 partners, nearly 1,200 Tier 2 and Tier 3 partners across the country, and more than 7 “Chenguang” retail terminals.

80,000, the number of terminals increased by 2,000 more than the end of 2018, fully realized channel sinking.

In addition, the company focuses on key terminals and promotes channel optimization and upgrading, including the promotion of single store quality improvement, chain franchise upgrade, post-distribution platform upgrade and operation optimization, and creation of boutique cultural and creative zones, office zones and children’s art zones.

New business continued to grow rapidly and gradually entered the harvest period.

The company’s new business mainly includes the development of Chenguang Klip, a one-stop office service platform, Chenguang Life Center for retail stores, Jiumu Sundries, and Chenguang Technology, an Internet and e-commerce platform.

In the first half of the year, a series of new businesses such as Chenguang Klippu and Chenguang Living Museum (including Jiumu) continued to grow at a high speed, an increase of 60% over the same period last year.

1) Chenguang Klip has implemented a centralized mining policy, Dongfeng and its strong business development and service capabilities. In the first half of the year, it realized revenue of 1.5 billion yuan, a year-on-year increase of 56%.

The number of reports has successfully developed multiple government customers, central enterprise customers and large enterprise customers, and the logistics and distribution capabilities have also been continuously improved.

At present, Chenguang Klip has put into operation five central warehouses, covering five major regions of the country. It has set up its own distribution team in nine cities including Shanghai, Beijing, Guangzhou, Shenzhen, Tianjin, etc. to improve the distribution efficiency and help expand the market and serve customers.

2) Chenguang Life Museum (including Jiumu) realized revenue 2.

310,000 yuan, an increase of 95% year-on-year, of which Jiumu Sundry Club contributed 1.

6.4 billion yuan, 240% year-on-year.

As of the end of the reporting period, the company had 300 large retail stores across the country, including 129 Chenguang Living Centers and 171 Jiumu Sundry Clubs (114 directly-operated and 57 joined).The overall performance of large retail stores exceeded expectations.

Upgrade earnings forecast and maintain “overweight” rating.

Adjusted profit forecast to return net profit to mother from 2019-2021.



95 trillion increased to 10.



21 trillion, corresponding to a PE of 38 in 2019-2021.

33x / 31.

41x / 25.

50 times.

The company is a leader in the culture, education and office supplies industry, and its downstream demand is relatively rigid.

Traditional business integration channels and product upgrades have grown steadily, and new business has been growing at a rapid pace.

Taking into account the company’s high growth, the industry in which the space is broad, and there is a certain scarcity in the stock market, the company was given a 19-year PE39-42 estimate, corresponding to a target price of 42.


2 yuan.

As the current expectation is about to enter the target price range, maintain the “overweight” level.

Risk reminder: Office direct sales business customer expansion is less than expected New retail business development is less than expected