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Hisense Electric (600060): Cost Dividend and Expense Rate Downward Q3 Gradually Improved

Hisense Electric (600060): Cost Dividend and Expense Rate Downward Q3 Gradually Improved

Hisense Electric (600060): Cost Dividend and Expense Rate Downward Q3 Gradually Improved

The company released three quarterly reports, and achieved operating income of 236 in the first three quarters of 2019.

44 trillion, down 2 a year.

91%; net profit attributable to mother 2.

65 ppm, a decrease of 21 per year.


Among them, the third quarter of 2019 achieved operating income of 85.

4 ‰, a decrease of 17 per year.

4%, net profit attributable to mother 2.

20,000 yuan.

Analysis and judgment: weak demand in the color TV industry, Q3 revenue under pressure.

According to AVC’s omni-channel push total data, the retail volume of China’s color TV market in Q3 2019 was 10.34 million units, each time -3.

6%; retail sales of 27.7 billion yuan, ten years.


Channels such as out-of-home entertainment, live streaming of mobile phones, and website videos divert consumers’ entertainment time, leading to a decline in demand for television, and a weakening of demand for real estate, increasing demand.

In terms of product upgrades, the technology selling point of LCD TVs is not enough innovation. The company’s Q3 revenue was under pressure due to weak industry demand, and it achieved operating income of 85 in Q3 2019.

4 ‰, a decrease of 17 per year.


Insufficient domestic market demand in 2019Q3 has dragged down revenue performance, but the export market has grown steadily.

Cost dividends drive up gross profit margins, improving management expense ratios and improving profitability.

The company’s gross profit margin in the first three quarters of 2019 was 16.

8%, an increase of 2 per year.

9 points.

Among them, the gross profit level of 2019Q3 was 18.

59%, compared with a gross profit margin of 12 in Q3 2018.

54% increase by 6.

05pct, compared with a gross profit margin of 16 in Q2 2019.

81% MoM increased by 1.


The increase in gross profit margin was mainly due to the decline in Q3 panel prices and the high-end product structure.

In Q3 2019, the prices of LCD TV panels (32-55 inches) and the chain ratio both showed a decrease in different degrees, and the decline in raw material prices brought cost dividends.

At the same time, the consumer demand for color TVs is constantly subdivided, the size structure is optimized and upgraded, the large screen market is growing faster, and the small and medium size markets are shrinking.

After the acquisition of TVS by the company, the product structure was further 合肥夜网 improved, driving the gross profit margin to increase.

In terms of expense ratio, the company’s sales expense ratio in Q3 2019 was 10.

8% increase by 1 each year.

8 points, management expense ratio 1.

7%, down 4 each year.

6pct; The sales expense ratio in the first three quarters of 2019 is 10%, which is increased by 1 every year.

6 points, management expense ratio 1.7%, down by 3 per year.


The reason for the increase in the sales expense ratio is that the company has optimized the KA channel and expanded the expenditure on marketing activities. The improvement in management expense ratio has improved the company’s profitability.

7%, QoQ net profit margin is 0.

8% increase by 1.

9 points.

Revitalizing bill funds and operating cash flow significantly improved.

The company’s operating net cash flow for Q1-Q3 in 201914.

700 million, compared with the first half of 20198.

60,000 yuan increased by 71% every year during Q1-Q3 20183.

9.5 billion increased by 272%.

The increase in the importance of operating cash flow was mainly affected by the revitalization of bill funds.

In order to improve the efficiency of fund use, the company accelerated the repayment and revitalized the bills and funds, increasing non-recurring gains and losses, and improving the company’s overall profit.

Of which, in Q3 2019, the cash received for selling goods and providing labor services was 78.

32 ppm, a year-on-year decrease of 22%, which is more than the decline in 2019Q3 revenue.

The investment proposal was adjusted through overseas channels, and the TVS business gradually reversed losses to contribute to performance. Toshiba’s technological advantages and brand power in the field of black electricity are expected to bring increased performance in the future.

After calculation, the company is expected to achieve operating income of 347 in 2019-2021.



0 million, EPS is 0.



41 yuan, corresponding to the current expected PE is 39/26/24 times, the first coverage gives an “overweight” rating.

The risks indicate the downside risks of the macro economy, the risks of changes in the prices of raw materials, and the risks of changes in the market structure.