Gu Jia Household (603816): Dealer holdings will further promote binding interests to help development

Gu Jia Household (603816): Dealer holdings will further promote binding interests to help development
Event: The company announced that some distributors plan to increase the company’s shareholding: The distributor increased the company’s 天津夜网 shares through the private equity fund of Shanghai Yingshui Investment Management Co., Ltd., which participated in the subscription. Opinion: Issue the plan of increasing the shareholding of dealers, bind the dealers in depth, and share the company’s development bonus.The company released a plan to increase the shareholding of the dealer. The dealer’s shareholding plan has a fund size of 120-200 million. This increase does not set a price range. The purchaser will determine the appropriate purchase price and time to buy it.The holding period is 6 months.The company’s well-known distributor benefits and development, and share the company’s development bonus with the distributor.The plan to increase the shareholding of dealers will fully mobilize the enthusiasm of dealers, deeply bind the interests of dealers, and strengthen the stability of the marketing team.Contribute to the improvement of the company’s channel quality and continuous development, and promote the company’s retail transformation.At the same time, it also shows the dealer’s confidence in the company’s long-term development. The sofa industry has high barriers and a stable competitive landscape.The competition pattern of the sofa industry has been stable in recent years. The two leading companies have established a stable level, and no new sofa leading company has appeared in the industry.Because of the variety of styles, materials, sizes, and colors of leisure sofas, SKUs are more than other furniture categories.Many SKU varieties have extremely high requirements on the supply chain, requiring companies to carry out further organizational management capabilities and alternative supply chain integration capabilities, using the height of the sofa industry’s competition barriers, it is difficult for new entrants to increase their scale and seize the market in a short time.The company has been in the sofa field for many years, has strong organizational management capabilities, outstanding front-end retail and integrated supply chain capabilities, and builds the company’s core competitiveness.High industry barriers and a stable competition pattern will help the company to further seize market share. Earnings forecast and estimation: EPS are expected to be 1 in 19-21.99, 2.39, 2.82 yuan, corresponding PE is 23X, 19X, 16X.Give “Buy” rating. Risk warning: raw material prices rise sharply, Sino-US trade friction escalates