1-3Q2018 revenue increased by 0.58% year-on-year, and home net profit increased by 28.22% year-on-year.
On the evening of October 29, the company announced the third quarterly report of 2018: 1-3Q2018 realized operating income of 8.572 billion yuan, an increase of 0.58% over the same period last year; realized return net profit of 741 million yuan, an increase of 28.22% over the same period last year, equivalent to 0.43 yuan of fully diluted EPS; and realized deduction of 716 million yuan of non-return net profit, an increase of 29.80% over the same period last year.
In a single quarter, the company's 3Q2018 achieved operating income of 2.506 billion yuan, a decrease of 1.58% over the same period last year, and a net profit of 202 million yuan, an increase of 9.03% over the same period last year.
The comprehensive gross profit margin increased by 1.86 percentage points, and the expense rate decreased by 0.71 percentage points during the period.
The comprehensive gross profit margin of 1-3Q2018 was 29.75%, up 1.86% from the same period last year.
The expense rate for the period of 1-3Q2018 was 15.72%, a decrease of 0.71% over the same period last year, of which the sales / management / financial expense rate was 10.56% / 2.37% / 2.79% respectively, with year-on-year changes of-0.71 / 0.22 /-0.22% respectively.
Business adjustment has led to a sharp decline in Chengdu's comprehensive super revenue.
During the reporting period, the company's Chengdu comprehensive super business revenue dropped 51.24% compared with the same period last year. On the one hand, it was due to the closure of stores in May 17, which led to a sharp decline in comprehensive super business revenue. On the other hand, the company adjusted its business strategy and concentrated resources on the department store business. In September, the company closed two comprehensive supermarkets in Chengdu, and the income of the comprehensive super business line camps outside Chengdu also dropped to a certain extent during the reporting period.
In terms of store integration, since the beginning of this year, the company's expense rate during the single quarter has continued to decline compared with the same period last year, and the integration work has been promoted steadily and effectively, providing a certain space for the subsequent growth of net profit.
Maintain profit forecast and maintain "overweight" rating
The company's store integration is progressing steadily and has the potential to grow into a multi-regional leader. We maintain the forecast of the company's comprehensive dilution EPS of 0.69 / 0.73 / 0.76 yuan for 18-20 years, 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.