Site Overlay

Chongqing Department Store (600729): Stores Optimize Consumer Finance to Promote Net Profit Growth

Chongqing Department Store (600729): Stores Optimize Consumer Finance to Promote Net Profit Growth
Investment Highlights: Event: Chongqing Department Store released its “2018 Annual Report”, and now has revenue of 340 in 2018.8.4 billion, an annual increase of 3.55%; operating profit 10.26 ppm, an increase of 26 in ten years.99%; net profit attributable to shareholders of the listed company.31 ppm, a 37-year increase.28%.Q4 achieved operating income of 83.98 ppm, a ten-year increase of -3.05%; Q4 achieved net profit attributable to shareholders of the listed company.6.2 billion, a decrease of 39 every year.97%.The company’s performance was in line with expectations. Store adjustments affected the performance of supermarket formats, while the remaining formats performed in a continuous market.The company’s operating income, the company initially achieved operating income of 340.$ 8.3 billion, of which the department store business realized revenue of 258.57 ppm, a ten-year increase2.32; Auto trade business realized revenue 62.84 ppm, a ten-year increase of 7.28%.Department store business gradually increased operating income3.29%, the operating format of supermarkets affected by closures decreased by zero.02pct, the operating income of the electrical appliance industry increased by 5.31%, operating income of the automobile trade format increased by 7.28%. The increase in gross profit and the decline in fees contributed to the 天津夜网 increase in net profit.The company expanded its supply chain adjustment and store integration, and its comprehensive gross profit margin reached 18 during the reporting period.42%, rising by 0 every year.74 points.In terms of different business types, the gross profit margin of the auto-export segment was slightly reduced by the gross profit of the entire vehicle.13 points, so the gross profit margins of all major main operating states have all significantly increased.The gross profit margins of the department store, supermarket, and appliance formats increased by 0.15pct, 1.66, 2.49pct. Increasing the proportion of fresh produce in the supermarket format has led to a steady increase in gross profit margin.In addition, the company’s leadership management mechanism has deepened sophisticated management and employee multi-level management systems.Expenses during the reporting period1苏州夜网论坛4.44%, a decrease of 0 from the same period last year.03pct.Among them, management expenses decreased by 0.32pct, sales expenses and period expenses increase by 0 respectively.22pct and 0.08 points. Store optimization and adjustment to improve efficiency.In the final report period, the company operated 310 stores.Among them, 55 are department stores, 177 are supermarkets, 48 are electrical appliances, and 30 are auto trades.The company promoted the rational optimization of stores and gradually increased 13 stores, including 10 supermarkets, 2 general department stores and 1 home appliance store.At the same time, 16 supermarkets and 2 home appliance stores were closed due to unsatisfactory profit improvement and lease expiry. The consumer financial market is active, and finance immediately contributes consumer dividends.18Q3 immediately completed the third round of financing, and the financial scale continued to expand immediately after the capital increase was completed.After the subscription, the company holds 31 financial shares immediately.06%.18 years of operating income reached 8.10,000 yuan, an increase of 38 in ten years.7%, contribute 2 to the company.4.7 billion investment income. Earnings forecast and investment rating: We maintain the company’s performance expectations. It is expected that the company will achieve revenue of 357/369/373 billion US dollars in 19/20/21, a growth rate of 4.68% / 3.32% / 1.13%, while realizing net profit attributable to mother 10.68/12.54/14.3.9 billion, a previous growth rate of 28.52% / 17.43% / 14.75%, EPS is 2.63/3.09/3.54, corresponding to PE is 14.15/12.05/10.50. Maintain the “Recommended” level. Risk warning: market competition is intensifying, and financial development is less than expected immediately.