1Q2018's revenue and return net profit increased by 9.15% and 23.63%, respectively.
The company announced its quarterly report for 2018: 1Q2018 achieved operating income of 2.457 billion yuan, an increase of 9.15% over the same period last year; net profit of 124 million yuan, equivalent to 0.22 yuan of fully diluted EPS, an increase of 23.63% over the same period last year; and net profit of 122 million yuan, an increase of 23.61% over the same period last year.
The comprehensive gross profit margin increased by 0.004 percentage points, and the expense rate decreased by 0.54 percentage points during the period.
1Q2018's consolidated gross profit margin was 15.47%, up 0.004 percentage points from the same period last year.
The expense rate of 1Q2018 during the period was 8.17%, down 0.54% from the same period last year, of which the sales / management / financial expense rate was 3.74% / 4.13% / 0.30% respectively, which changed by-0.08% /-0.45% /-0.01% respectively over the same period last year.
Automobile business is growing well.
During the reporting period, the company added one new car maintenance service store and one food store, and closed one electrical store. By the end of the reporting period, the company has a total of 115 stores in various formats, including 58 self-owned stores and 57 leased stores according to property ownership. According to the business format, there are 11 business categories, 31 catering and food specialties, and 73 automobile sales services.
During the reporting period, the company's automobile sales and service business maintained the high growth rate since last year, with revenue of 1.653 billion yuan, an increase of 13.45% over the same period last year, and the gross profit margin of the automobile business also increased slightly, up 0.58% from the same period last year. The development of the company's automotive business is expected to be the main driver of the company's performance in the future.
Maintain profit forecast and maintain "overweight" rating
We expect that the company's automotive business will maintain a good growth trend, the recovery process of department store business is relatively stable, maintain the forecast of fully diluted EPS of 0.54 / 0.60 / 0.63 yuan for 18-20 years, and maintain the "overweight" rating.
Risk hint
The sales of automobile business are lower than expected, and the sales of middle and high-end department stores are lower than expected.
