The company released its 2016 annual report and turned its performance from deficit to profit.
Xinhua achieved an operating income of 6.71 billion yuan in 2016, an increase of 3.42% over the same period last year; the net profit of shareholders belonging to listed companies was 54.38 million yuan, compared with-374 million yuan in the same period last year, turning losses into profits over the same period last year; and the net profit after deducting non-profits was-120 million yuan. The company's investment income of 208 million yuan from the transfer of shares in Changsha in 2016 is the main reason for the large net profit gap before and after deduction. The company's lower-than-expected performance in 2016 was mainly due to the asset impairment loss of 197 million yuan in 2016, which was mainly affected by the stagnation of the project of Hechang (Fujian) Real Estate Development Co., Ltd., including 88.73 million yuan for impairment of house purchase, 52.79 million yuan for rental deposit and interest impairment, and 46.54 million yuan for impairment of Wuyi property in Changsha. After deducting this factor, the company's original main retail business successfully turned a loss into a profit.
The gross profit margin of fresh business has increased by 3.57 percentage points, and the integration of supply chain has been fruitful.
In terms of business, the company's fresh income in 2016 was 1.591 billion yuan, up 8.68% from the same period last year, gross profit margin was 11.78%, 3.57% higher than the same period last year; food income was 1.945 billion yuan, up 15.32%, and gross profit margin was 19.87%, 4.09% higher than the same period last year; daily necessities income was 1.165 billion yuan, down 20.9% from the same period last year, and gross profit margin was 16.24%, down 2.69% from the same period last year The revenue of department stores was 1.572 billion yuan, down 22.2% from the same period last year, and the gross profit margin was 16.78%, down 0.23% from the same period last year. Overall, the company's original retail revenue increased by 3.43% compared with the same period last year, and the gross profit margin increased by 1.4 percentage points. Benefiting from the integration of supply chain, the proportion of direct supply / origin direct and integrated production of the company's products has increased, the proportion of own brands has increased, the income of fresh and food business has increased rapidly, and the gross profit margin has increased significantly.
The fee for the period was 21.15%, a decrease of 2.81% over the same period last year.
In 2016, the company's sales expense rate was 17.13%, down 1.02% from the same period last year; the management expense rate was 3.7%, down 1.75% from the same period last year; and the financial expense rate was 0.32%, 0.05% lower than the same period last year. The total expense rate of the three items decreased by 2.81% compared with the same period last year, first, due to the large number of stores in 2015, and in addition, while the company increased the competitiveness of goods in 2016, human efficiency and flat efficiency were improved, rents also declined, and cost control was effective.
E-commerce agents have good performance and broad prospects for development.
In 2016, the company achieved a total income of 343 million yuan, a net profit of 65.45 million yuan, a year-on-year increase of 25%, and a good performance. At present, the company's agent operation business is mainly focused on fast consumer products such as spirits, including agent operation services and Internet sales (including customized and non-customized products). Liquor sales channel accounts for a very low proportion of online, broad market prospects, the company as a leader in the operation industry, will share the liquor online shopping scale to rapidly increase the dividend. With the support of many years of cooperation between Xinhua and many brands and strong major shareholders, with the continuous increase of successful cases of agent operation, there is a lot of room for imagination in the cross-category replication of agent operation business.
Maintain the "overweight" rating
It is estimated that the net profit from 2017 to 2019 will be 122 million yuan / 158 million yuan / 196 million yuan respectively, an increase of 123.88%, 29.91% and 23.87% respectively over the same period last year, and the corresponding EPS will be 0.18 yuan / 0.23 yuan / 0.29 yuan respectively, which will continue to maintain the company's "overweight" rating.
Risk tips: the macro consumer environment is declining sharply, food and beverage safety events, the brand cancels the right to operate on behalf of the company, and the loss of the "Quanzhou Hechang Trade Center" project cannot be recovered.