Summary of the report:
Operating income fell 2.32% year-on-year, and gross profit margin increased by 0.15% year-on-year. In 2016, the operating income was 5.241 billion yuan, down 2.32% from the same period last year, and the net profit was 196 million yuan, down 13.47% from the same period last year. The net inflow of operating cash flow was 468 million yuan, an increase of 188.51% over the same period last year.
The comprehensive gross profit margin was 19.09%, an increase of 0.15 percentage points over the same period last year. In terms of period expenses, the sales expenses were 391 million yuan, an increase of 2.45% over the same period last year, and the management expenses were 300 million yuan, an increase of 98.25% over the same period last year, and the financial expenses were negative. The overall increase in expenses during the period was 0.88%.
The format covers department stores and shopping centers, ploughing Hangzhou. During the reporting period, the company continued to engage in commodity retail business. By the end of the reporting period, the company has four stores, namely, Hangzhou Xiebai Shopping Mall, Hangzhou Mansion Shopping City, Xiebai Yiwu Store and Xiebailan Creek Store. In terms of main business revenue, merchandise sales / guest rooms / advertising / catering / other services are 4.946 billion / 40.1066 million / 1.7062 million / 452500 / 97900 respectively, and the gross profit margin is 18.44%, 95.17%, 63.48%, 62.87%, 61.74% respectively. The overall gross profit margin is 19.09%.
The main business is sound, while seeking change in the midst of stability. After years of hard work and accumulation, the company has gained a high reputation in the business area, and with professional management and quality service has won the general recognition of consumers and partners. During the reporting period, the company also adjusted the organizational structure and corresponding staffing according to the needs of development, revised and improved the relevant systems and processes, and reshaped the organizational structure of the company.
Open up new industries, test sports and health care modules. During the reporting period, the company has identified the self-supporting part of the whole health project in cooperation with run run Shaw Hospital, and introduced a number of medical institutions and merchants involved in medical beauty, ear, nose and throat clinic, dentistry, nephropathy clinic, pregnancy preparation, etc., MedicalMall has begun to take shape; in terms of Yuesheng sports, the company continues to promote the "2018 World Travel" and natural growth projects, and accelerate the entertainment sports event hosting, venue resources accumulation and so on.
Hangzhou will hold the World Swimming Championships in 2018 and the Asian Games in 2022. As a state-owned holding enterprise in Hangzhou, the company has great potential opportunities.
Profit forecast and valuation: from 2017 to 2019, the EPS is expected to be 0.24,0.25,0.26 yuan per share respectively, and the corresponding PE is 49.85x, 47.70x and 46.45x respectively.
Risk hint: Department store industry continues to decline; industry competition risk; investment project risk