Divest loss-making stores and stabilize profit growth. The company issued a 14-year performance forecast on January 19th: it is expected to achieve revenue of 7.65 billion (down 1.48% from the same period last year) and net profit of 240 million (up 7.5% from the same period last year). The increase is mainly due to the adjustment of store layout and the cessation of loss-making store operations. In November 14, the loss-making Huizhou store in Guangdong was closed again, and the stop-loss divestiture maintained the company's profitability.

Store management adjustment, O2O, small loans jointly promote performance growth. First, the company implements the regional development strategy of "based on Guangzhou" and adjusts the layout of stores. By the end of 14 years, the company has 25 department stores and 16 are located in Guangzhou. In 16 years, Guangbai will be stationed in Guangzhou International Plaza to consolidate and expand Guangzhou's market share. Following the closure of Chengdu stores in April 13 and Wuhan stores in December 13, the company closed Huizhou stores in Guangdong with an average annual loss of more than 10 million in November 14, stripped off loss stores to maintain the company's operation, and in November 14, Guangbaixin City stores completed the transformation and re-opened, the company continued to turn to high net worth single stores, stores actively adjusted to improve the current business situation. Second, continue to develop online, integrate big data to deal with the completion of traffic introduction, 12 years the company began to explore online operation model, 13 years Wang Huajun served as chairman of the company, vigorously promote online modules, October 13, "Guang Baihui" revised and upgraded online, integrated with physical store member platform "Guang Baihui", in October 14, the company launched "Guangbaibao" and mobile payment application, and carried out O2O strategy exploration. Rely on offline and online superior resources to get through the links of flow, membership and payment, so as to enhance the future expectation of the company's operation. Third, in September 13, Guangbai Ye, a subsidiary of United Group, launched the establishment of Guangbai Micro-loan Company (5% of the shares and 25% of the shares), with a registered capital of 300 million, relying on shareholder resources to carry out business and help supply chain finance. carry out a rich business system for the launch of financial products, and boost 14 years of net profit growth with the help of financial income from the small loan platform.

Rely on Guangbai Group to share the dividends of state-owned enterprise reform. The company is the only listing platform of Guangbai Group, which is rich in resources, involving logistics warehousing (storage and transportation company), real estate development (Guangbai Real Estate, Lianhuashan Holiday Village Exhibition City, etc.), trade wholesale (Guangbai Automobile Trade, Chemical Light Company, auction house) and other business areas. In November, Guangdong Province issued the implementation Plan for deepening the Reform of Provincial State-owned Enterprises, defining the objectives, measures, roadmap and timetable of the new round of state-owned assets reform in Guangdong. The landing of the provincial state-owned assets policy catalysed the implementation of Guangzhou's detailed plan and accelerated the implementation of the reform policy of state-owned enterprises at the municipal level for 15 years. Guangzhou Friendship increased acquisition Yuexiu Financial Control started the first shot of Guangzhou State-owned Enterprise Reform, and Guangzhou Friendship entered the financial field. Become a new platform for state-owned financial integration, Guangbai Group may rely on the listing platform to achieve asset securitization, with the help of resources in the system to strengthen the company's regional leading position in commercial retail.

Raise the profit forecast and maintain the increase. Relying on resources such as automobile trade, storage and transportation, real estate, auction and other resources, Guangbai Group, a major shareholder, is committed to building an aircraft carrier for modern service industry. as the only listing platform in the group, the company injects assets into expectations; the company adjusts its strategy and gives up expansion. try the innovative cooperation way of "commerce + real estate", and the business model is transformed to agency and buyer system. We estimate that the EPS in 14-16 years will be 0.70,0.73,0.76 yuan, and the corresponding stock price PE will be 17,16,16 times, maintaining an increase in holdings.

Risk hint: at present, there are still many stores in the company at a loss; the future continuous operation of the online end is uncertain; the landing time of the state-owned enterprise reform policy in Guangzhou has yet to be determined.