The company's 1-3Q2018 revenue decreased by 0.86% compared with the same period last year, and its net profit increased by 23.56% compared with the same period last year.
On the evening of October 29, the company announced that 1-3Q2018 realized operating income of 3.629 billion yuan, a decrease of 0.86% over the same period last year, and realized a net profit of 91 million yuan, equivalent to a fully diluted EPS of 0.17 yuan, an increase of 23.56% over the same period last year, and realized a net profit of 83 million yuan, an increase of 21.54% over the same period last year. Judging from the split in a single quarter, the company's 3Q2018 achieved operating income of 1.094 billion yuan, a decrease of 3.33% over the same period last year, which was greater than the 1.14% decline in 2Q2018. 3Q2018 realized a net profit of 16 million yuan, an increase of 8.08% over the same period last year, which was less than 38.99% of the growth of 2Q2018. The performance is in line with expectations.
The comprehensive gross margin increased by 0.11 percentage points, and the expense rate decreased by 0.48 percentage points during the period.
The main business of 1-3Q2018 Company realized operating income of 3.545 billion yuan, down 0.64% from the same period last year, of which commodity sales revenue was 3.445 billion yuan, down 1.17% from the same period last year. The main reasons for the large increase in the net profit of 1-3Q2018 are as follows: 1) the gross profit margin increased slightly and the expense rate decreased significantly during the period. The comprehensive gross profit margin of 1-3Q2018 was 20.11%, up 0.11% from the same period last year. The period expense rate of 1-3Q2018 company was 15.70%, which was 0.48% lower than that of the same period last year, of which the sales / management / financial expense rate was 12.30% / 3.41% /-0.01% respectively, which decreased by 0.34 / 0.08 / 0.07% respectively over the same period last year. The decline in the rate of financial expenses is mainly due to the increase in interest income and the reduction of credit card charges. 2) the non-operating expenditure is 333600 yuan, while the non-operating expenditure of 1-3Q2017 company is 4.3663 million yuan, which is mainly due to the closure of Qinghe store to pay lease termination compensation.
The main stores have the advantage of location and a high proportion of self-owned property.
The seven department stores under the company are basically located in the core business district or core community area of Beijing, with good location advantages. The company has its own property construction area of about 190000 square meters, and its own property accounts for 48%. The higher proportion of its own property makes the company have a better cost advantage and anti-risk ability. The company has high brand awareness and market influence in Beijing. In 2017, the company won the title of "Beijing Top Ten Commercial Brands Gold Award", and the brand influence continues to be consolidated.
Maintain profit forecast and maintain "overweight" rating
After the company closed its loss-making Qinghe store in 2018, the cost decreased significantly. We maintained the forecast for the company's EPS from 2017 to 2020, which was 0.33 / 0.36 / 0.39 yuan respectively, and maintained the "overweight" rating.
Risk hint: the operating area is more concentrated, and the recovery of middle and high-end consumption does not meet expectations.
