Jinjia Co. (002191): Color Box Business Continues High Growth E-cigarette Business Is About to Swell

Event: The company released its semi-annual report for 2019.

Revenue in the first half of the year was 18.

60,000 yuan, an annual increase of 15.

9%, Q1 / Q2 achieved revenue of 10 respectively.

100 million and 8.

600 million, an increase of 24 each year.

1% and 7.

5%; net profit attributable to mother 4.

6 ppm, an increase of 22 in ten years.

6%, Q1 / Q2 are 2 respectively.

6 million US dollars and 2 million US dollars, increasing by 21 each year.

8% and 23.


Realize net profit after deduction to non-return mother 4.

500 million, the previous growth rate was 25.


The company expects to realize net profit attributable to mothers from January to September6.

500 million to 7.

1 trillion, 10-year growth rate is expected to be 20% -30%.

The gross profit margin of the color box business has increased significantly, and the overall profitability is stable: the company’s overall gross profit margin in the first half of the year was 43.

1%, a year-on-year drop of about 1pp, mainly due to the decline in the gross profit margin of the laser packaging materials business, the company’s core tobacco label business gross profit margin remained basically stable, 43 in the first half.

At 8%, the scale effect of the color box business appeared, and the gross profit margin increased significantly6.

7pp to 32.


By quarter, the gross profit margin of Q2 was 42.

2%, increase by 1 every year.

3pp, gross margin is gradually improving.

The company’s cost-effective fee control effect was remarkable. The four expenses in the first half of the year were 13%, a year-on-year decrease of 0.

8pp; of which sales rate is 3.

1%, a decline of 0 per year.

2pp; management and R & D expense rate 10.

1%, falling by 1 every year.


In the first half of the year, the combined company’s investment income from Shenren Packaging, Shanghai Rencai, and Chongqing Hongsheng increased by nearly 20 million, and the net profit attributable to mothers was 26 in the first half.

8%, an increase of about 0 a year.


The cigarette label business expanded steadily and the color box business grew rapidly.

The tobacco industry has grown steadily. The company’s traditional cigarette label business has been expanding steadily in new markets and driven by the continuous development of new products. The revenue 无锡桑拿网 of cigarette label products in the first half of the year13.400 million, an annual increase of 6.

6%; revenue from laser packaging materials3.

300 million US dollars, a year-on-year growth of 3%; in the color box business, the company has continuously promoted the development of fine tobacco, electronic products and fast-moving consumer goods, and the color box business achieved about three months of revenue.

4 ‰, a sharp increase of 80 previously.

6%. The new customers developed in the first half of the year include new tobacco brands such as Lingxi, Dimo, Tweep, and Magic Flute, and have obtained supplier qualifications for mobile phone brands such as Zhongnuo and Haipai. In addition, the company reached a strategy with Maotai Technology DivisionCooperation, Shenren packaging business is progressing smoothly, and the joint 厦门夜网 venture company established with Wuliangye is expected to start production in September.

The development of new tobacco business was actively promoted.

The company’s subsidiary Jinjia Technology has already cooperated with China Tobacco companies in Yunnan, Shanghai, Henan, Shandong, Guangxi, Chongqing, etc., to provide smoking set research and development services.

At the same time, the company has provided R & D and foundry services for WEBACCO (Weibai), GIPPRO (LUMI), and LUMI.

In addition, the company also established a joint venture with Beijing Miwu, and launched the electronic cigarette brand FOOGO (福 狗), using the concept of poker cards, the first J, Q, K three series of products, the K series has been officially released and on June 18日 日在京东预售,7月1日起已正式修订,J / Q系列预计也很快上市。
Profit forecast and rating.

It is expected that EPS for 2019-2021 will be 0.

58, 0.

66, 0.

76 yuan, corresponding to 19 times, 17 times and 15 times the corresponding PE, maintaining the “buy” level.

Risk warning: the risk of rising raw material prices; customer development of the color box business may be lower than expected, and new tobacco business development may be lower than expected.