The main retail business was stable, and real estate confirmed an increase in profits, with a proposed 10-to-15 distribution of 3.6.

Wenfeng released its 2014 annual report, with annual revenue of 7.795 billion yuan, an increase of 8.6% over the same period last year. Excluding the impact of real estate confirmation of 504 million, the revenue of the commercial sector was 7.015 billion yuan, up 2.1% from the same period last year. The net profit of the parent was 444 million yuan or EPS=0.6 yuan, an increase of 15.4% over the same period last year, which was basically flat after deducting the net profit of about 62 million of Wenjing real estate business. At the same time, the company announced the annual distribution plan for 2014, which intends to increase 15 shares for every 10 shares and pay out 3.6 yuan.

O 2O linkage regained the popularity of department stores, supermarkets & appliances need to be adjusted to improve efficiency.

In terms of business format, the annual revenue of department stores was 4.793 billion yuan, up 6.6% from the same period last year (1H14 was 3.5% higher than the same period last year), and gross profit margin slightly increased by 0.1% to 17.6% compared with the same period last year. In addition to the incremental impact of the newly opened Nantong Wenfeng City Plaza, through 100000 online and offline linkage, take the initiative to speed up brand adjustment and upgrading and cinema-catering and other forms of leisure and entertainment, reunite the popularity of stores, and the effect is preliminary. Affected by the diversion of e-commerce, the supermarket-home appliance industry continues to be under pressure, and it is necessary to further speed up the adjustment and efficiency of stores. Among them, the annual income of supermarkets was 799 million yuan, down 4.3% from the same period last year, and the gross profit margin increased slightly by 0.1% compared with the same period last year. Home appliances closed six stores for the whole year, with revenue of 1.523 billion yuan, down 6.8% from the same period last year.

The main business is basically stable, the transformation is expected to be strong, it is recommended that investors actively pay attention.

Since 2011, traditional retail has suffered a double kill by Davis, and its market value has shrunk seriously. with the continuous emergence of financial innovation tools, invigorating existing assets (equity / property / cash flow) to seek business transformation has become an important choice for traditional enterprises (especially private enterprises). Wenfeng Group, a major shareholder, has promised to invest some of the 1.67 billion cash obtained from the equity transfer into emerging industries and give priority to the injection of listed companies after making a profit. We recognize the strategic transformation of the company and will continue to track the progress of the group's emerging business. The company's main retail business is basically stable, the group transformation is expected to be strong, and after the transfer of some shares by major shareholders (from 75% to 46%) and 10 shares into 15 shares, the stock liquidity has been significantly improved, investors are advised to pay attention to! Adjust the company's 15-17 EPS forecast to 0.64,0.70 and 0.8 yuan, maintaining the "prudent overweight" rating! Risk hint: the decline in real estate prices leads to the loss of property value; the promotion of emerging business is lower than expected.