14-year net profit increased by 7.3% over the same period last year, in line with expectations. The company achieved revenue of 7.65 billion in 14 years, down 1.48% from the same period last year; net profit from home was 240 million, up 7.3% from the same period last year; and net profit after deducting non-return was 180 million, down 10.2% from the same period last year.
The closure of loss-making stores leads to a decline in short-term revenue, and O2O seeks transformation and upgrading. In the past 13 years, the company began to adjust its store strategy, closing down loss-making stores (Chengdu stores in April 13, Wuhan stores in December 13, and Huizhou stores in Guangdong in November 14), focusing on local main stores to maintain normal operation. In addition, the company actively promotes the O2O model and strives to create a unique "Guang Baihui". The company's gross profit margin was 18.3%, a year-on-year decrease of 1.11%. The increase in the cultivation and promotion of new stores led to a decline in gross profit margin. During the reporting period, the company regulated the three fees during the reporting period, with the expense rate of 13.79%, a decrease of 0.66% over the same period last year. The decline in gross profit margin led to a decline in overall profitability.
Layout finance seeks performance increment. In 14 years, the small loan company achieved revenue of 54.23 million (up 665% over the same period last year), net profit of 24.611 million (up 1045% over the same period last year), and net profit of 6.153 million on equity. The company has invested 35 million (3.5%) in China Post Consumer Finance Co., Ltd., initiated by the Postal savings Bank of China, to strengthen the layout of the financial sector.
The reform of state-owned enterprises is worth looking forward to. By the end of 14 years, the group had a shareholding ratio of 54.18%. Business involves 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 areas, the company as the group's only listing platform, there are strong asset injection expectations.
Maintain the earnings forecast and maintain the-A rating. We estimate that the EPS for 15-17 years will be 0.73,0.78,0.84 yuan, and the corresponding stock price PE will be 22 times, 20 times and 19 times respectively.
Risk hint: the reform of state-owned enterprises falls short of expectations
