Main points of investment:
In the first half of the year, the revenue of 1.497 billion yuan increased by 17% compared with the same period last year, while the net profit of 16 million yuan fell 59% compared with the same period last year.
The substitution effect of e-commerce has penetrated into second-and third-tier cities, and the passenger flow of main stores is affected by municipal construction.
E-commerce and automobile business are expected to become new growth points.
Summary of the report:
The reported income of 1.497 billion yuan increased by 17%, while the net profit of 1600 yuan fell 59%. The penetration of e-commerce to second-and third-tier cities has increased, which has a negative impact on the company's revenue growth and profitability. The comprehensive gross profit margin in the first half of the year was less than 15%, a significant decline. At the same time, the gradual spread of urban rail transit construction and municipal road construction in Nanning has had a negative impact on the flow of people and customers in several major stores of the company, and the growth rate of the same store has declined.
Store transformation and fine management have become the starting point to ensure the growth of the same store. The company continues to do a good job of store transformation, actively support key brands, in the case of ensuring the richness of goods, enhance the diversity of stores and enhance the attractiveness to consumers. At the same time, the company carries out special promotional activities for the target customer group and vigorously develops the membership customer group, with an increase of 100% in membership.
E-commerce and automobile business are expected to become new growth points. The company set up a home appliance e-commerce work department to enhance the positive interaction between department stores, home appliance stores and online marketing, and e-commerce sales increased by 42.47% compared with the same period last year. At the same time, the company's automobile company accelerated the construction of new brand agents and new stores, and sales in the first half of the year increased by 278.92% compared with the same period last year.
The market shrinks and the cost pressure of rent and labor brought about by the impact of e-commerce will exist for a long time. Domestic e-commerce enterprises have formed oligopolies such as BABA, JD.com, SUNING and Yi Xun, which far exceed the regional retail leading companies in terms of procurement scale and operating efficiency. In the case of the rapid development of third-party logistics such as Shunfeng and Yuantong, coupled with the maturity of e-commerce's own distribution system, e-commerce borderless expansion brings subversive replacement to traditional retail. At the same time, in the era of soaring prices, rising rents and labor will also perplex traditional retail enterprises for a long time.
Profit forecast. It is predicted that the EPS of the company in 13-15 years is 0.07 pound 0.08 pound 0.09 yuan respectively.