Xujiahui released the 2016 Annual report
Xujiahui 2016H1 achieved a total operating income of 1.026 billion yuan, down 0.72% from the same period last year, and its net profit was 121 million yuan, down 7.80% from the same period last year. The non-return net profit was 113 million yuan, down 4.90% from the same period last year. Net cash flow from operating activities was 124 million, an increase of 23.58 per cent over the same period last year. The company's performance is basically in line with expectations.
Increase in fees during the opening of new stores, driving down the net interest rate
The continued macroeconomic downturn led to a decline in revenue, but the opening of Huijin South Station store (City OUTLETS) brought a certain increase in sales, making the overall sales decline more slowly. The gross profit margin of the company is basically flat, and the decrease in net profit margin is mainly due to the opening of Huijin South Station store in this period, and the increase in shopping mall fees and labor costs caused the company's expenses during the period to increase by 12.78% compared with the same period last year.
The format of the industry has been continuously optimized, and the online system has progressed steadily.
Since 2015, the company has made a series of adjustments to offline stores: Shanghai 600 has made cross-floor adjustments, Huijin Xuhui Store has upgraded its female category, Huijin Hongqiao Store has improved supporting services, and Huilian Shopping Mall has strengthened the introduction of catering brands. The targeted adjustment of each store will effectively improve the consumer experience and enhance profitability. At the same time, the company is also actively cooperating with Shanghai Jiaotong University to develop the EMEC online system of "ERP+APP omni-channel integration", which was launched in Huijin Xuhuidian in July 2015, and will continue to promote the synchronization of online and offline resources, expand the scope of software application and improve store operation efficiency in the future.
Maintain the "neutral" rating and pay attention to the reform of state-owned enterprises
It is estimated that the company's operating income from 2016 to 2018 will be 19.76, 20.15, 2.056 billion yuan respectively, an increase of-1%, + 2% and + 2% respectively over the same period last year; and the net profit of returning home will be 2.54 trillion yuan, an increase of 0.51%, 3.76% and 0.7% respectively over the same period last year. As the only listing platform of Xuhui District SASAC, the recent reform of state-owned enterprises in Shanghai has exceeded market expectations. Investors are advised to pay attention.
Risk hint: the macro-economy is in a serious recession and the progress of state-owned enterprise reform is lower than expected.