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【东海证券】上海九百(600838):久光百货进入盈利期并维持对公司资产注入的预期

[Donghai Securities] Shanghai 900 (600838): Jiuguang Department Store enters a profit period and maintains expectations for the injection of the company's assets

東海證券 ·  Dec 5, 2007 00:00  · Researches

Zhengzhang washing and dyeing company is expected to improve its performance to a certain extent in 2008 after the completion of relocation and production expansion in 2007.

Shanghai Zhengzhang washing and dyeing Company, a wholly owned subsidiary of the company, not only develops, produces and sells professional washing products for kitchens, bathrooms, clothing, etc., but also sets up chain stores to provide laundry services, but the main profit comes from fine chemical products in market segments, with a gross profit margin of 50% and 60%. Among them to the kitchen greasy chapter "oil gourd" products are the company's leading products, in the entire market segment occupies a high market share.

In 2007, due to chemical pollution, the company moved from a small factory on Zhongshan North Road to a larger plant in Baoshan District, and also bought large assembly lines in Europe and the United States. Can further develop more market segments of professional products, there is an automatic laundry, ultraviolet disinfection, bag assembly line, and then transported to various laundries through professional transport vehicles, can greatly improve the efficiency of laundry. And considering the existing production capacity of washing individual customers' clothes, an assembly line which can wash hotel clothes automatically in large quantities has been introduced.

Due to plant relocation and equipment commissioning in 2007, Zhengzhang washing and dyeing company stopped production for several months without any sales revenue and profit contribution, which will have a certain negative impact on 2007 performance. However, the new plant and the newly introduced assembly line, as well as the business thinking of the new factory director to update the products, will have a rapid growth for the company's performance in 2008.

Jiuguang Department Store, which entered the profit period this year, will also be a bright spot to thicken the company's performance.

Jiuguang Department Store, which opened in 2004, passed the shopping mall training period as scheduled. In 2007, the report revealed that it achieved 542 million yuan in operating income, 141 million yuan in operating profit and 34.15 million yuan in net profit, and is expected to achieve a net profit of about 80 million to 100 million yuan for the whole year of 2007. The high-end positioning of Jiuguang Department Store also makes its gross profit margin relatively higher than that of ordinary department stores, reaching a gross profit margin of 26% and a net margin of 5.8%, which fully demonstrates the ability of Hong Kong investors to operate high-end department stores.

Because at present, Shanghai 900 only has a 25% stake in Jiuguang Department Store, which is calculated according to the cost method and estimated according to the annual net profit of 100 million, which can contribute 25 million of the investment income to Shanghai 900. After entering the profit period, shopping malls can steadily enjoy an annual growth of about 30%. If major shareholders can inject the remaining 10% into listed companies and transfer them into consolidated statements to calculate the profits of listed companies, there will be a more obvious performance boost effect.

Equity investment of 27.3 million shares of Oriental Securities.

The company holds 27.306565 million shares of Oriental Securities at a cost price of 1.06 yuan per share. if Oriental Securities can be listed in the first half of 2008, and assuming that each share can reach 50 yuan, the company will have a paper profit of 1.365 billion yuan. The company will not reduce its holdings at one time, but the proceeds from successive sales can consider investing in more high-quality commercial projects to expand the company's existing scale.

Overall, there may be a decline in performance in 2007, maintaining expectations for asset injections in 2008, but the real explosive growth in performance will not occur until 2009.

The translation is provided by third-party software.


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