Xinhua released its quarterly report for 2017.
According to the first quarterly report of 2017 released by Xinhuadu, 2017Q1 achieved 1.827 billion yuan in revenue, down 3.48% from the same period last year; net profit belonging to shareholders of listed companies was 39.33 million yuan, down 16.35% from the same period last year; net profit after deduction was 36.35 million yuan, down 13.56% from the same period last year; net cash flow from operating activities was 91.45 million yuan, compared with-66.82 million yuan in the same period last year.
Income pressure led to a 16.35% drop in net profit compared with the same period last year.
2017Q1's comprehensive gross profit margin was 22.39%, down 0.24% from the same period last year; from the perspective of expense rate, the company's 2017Q1 sales expense rate was 15.12%, an increase of 0.32% over the same period last year; the management expense rate was 3.54%, an increase of 0.68% over the same period last year; and the financial expense rate was 0.22%, a decrease of 0.19% over the same period last year. From an absolute point of view, the company's expenses increased by only 2.69 million yuan during the 2017Q1 quarter, and the decrease in profit was mainly due to the decrease in revenue.
The business format promotes innovation, which is in line with the general trend of consumption upgrading.
In the face of the accelerated pace of life of residents and changes in consumption habits, the company continues to innovate in terms of format. In December 2015, the company launched a new brand of community life supermarket-"Neighbourhood gathering", which is characterized by operating fresh and ready-to-eat goods. pay more attention to the quality of goods, is a collection of leisure, shopping, light meals, service as one of the community platform. At present, the company is actively preparing to launch a new model of "catering + supermarket".
Business format-Seafood Club, seafood will be mainly catering, supplemented by the sale of food materials, operating volume of 5000 square meters, more than 150 kinds of seafood direct supply. Seafood Club is positioned as an incubator for innovative small-scale catering in Xinhua. According to consumer demand, new business type can be combined and deployed to open a shop independently, which is in line with the general trend of consumption upgrading.
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.