1H2018's operating income and return net profit increased by 1.5% and 37.31%, respectively.
On the evening of August 20, the company announced its 2018 semi-annual report: the company's 1H2018 realized operating income of 6.066 billion yuan, an increase of 1.50% over the same period last year; realized net profit of 538 million yuan, equivalent to 0.31 yuan of fully diluted EPS, an increase of 37.31% over the same period last year; and realized net profit of 520 million yuan, an increase of 37.26% over the same period last year, and the performance was in line with expectations.
In a single quarter, the company's 2Q2018 achieved an operating income of 2.727 billion yuan, an increase of 0.41% over the same period last year, which was less than 2.41% of the growth of 1Q2018; and the net profit returned to its mother was 247 million yuan, an increase of 33.08% over the same period last year.
The comprehensive gross profit margin increased by 2.22 percentage points, and the expense rate decreased by 0.92 percentage points during the period.
The comprehensive gross profit margin of 1H2018 was 29.10%, up 2.22% from the same period last year; the expense rate for the period of 1H2018 was 14.81%, down 0.92% from the same period last year, of which the sales / management / financial expense rate was 9.96% / 2.27% / 2.58% respectively, with year-on-year changes of-0.84% 0.14% /-0.22% respectively.
The membership system continues to improve and grow, and is expected to grow into a multi-regional leader
During the reporting period, the company added one new store and closed one. By the end of the reporting period, the company had a total of 36 stores of various formats. The company's membership system has grown rapidly, and the new membership system has covered stores in South China, Inner Mongolia and Southwest (except Renhe). By the end of the reporting period, it had 2.36 million members, accounting for about 44.76% of the company's sales. With the growth of the company's multi-regional sales scale, the market influence in Chengdu, Shenzhen, Inner Mongolia and other regions is increasing, and it is expected to grow into a multi-regional leading department store enterprise.
Maintain profit forecast and maintain "overweight" rating
The growth of the company's main stores is good, and the growth potential of the newly acquired stores is great. We maintain the forecast of the company's 2018-2020 fully diluted EPS of 0.69 / 0.73 / 0.76 yuan, and maintain the "overweight" rating.
Risk Tips:
Regional economic growth is not up to expectations, the acquisition of store integration is not up to expectations.