The company's 1Q2019 revenue increased 9.58% year on year, and net profit to mother increased 5.74% year on April 26. On April 26, the company announced the 2019 Quarterly Report. 1Q 2019 achieved operating income of 3,531 billion yuan, an increase of 9.58% year on year, which was greater than the 9.12% increase in 4Q 2018. Achieved net profit of 120 million yuan to mother, equivalent to fully diluted EPS of 0.15 yuan, an increase of 5.74% over the previous year. Achieved net profit of 101 million yuan after deduction, a year-on-year decrease of 9.48%. The performance was in line with expectations. The main reasons why the company's net profit growth rate was lower than the revenue growth rate: 1) 1Q2019's investment income was -20.3976 million yuan, while 1Q 2018 was 9.3453 million yuan; 2) 1Q2019 minority shareholders' profit and loss was 5263.78 yuan, an increase of 35.7915 million yuan over 1Q 2018. The gross margin of 1Q2019 increased by 2.37 percentage points, the cost ratio decreased by 0.11 percentage points during the period, and the comprehensive gross margin of the 1Q2019 company was 20.69%, up 2.37 percentage points from the same period last year. The 1Q2019 company's expense ratio for the period was 11.68%, of which the sales/management/ finance expense ratios were 3.71%/7.82%/0.15%, respectively. The 1Q2019 company's expense ratio decreased by 0.11 percentage points compared to the same period of the previous year, of which the management expense ratio decreased by 0.17 percentage points compared to the same period of the previous year. A leading retail enterprise in Anhui. The chain network continues to expand. The company is a leading retail enterprise in the Anhui regional market. It has initially built a chain network based in the provincial capital and covering the whole province. In 2018, the company added 30 new chain outlets, adding 195,000 square meters of operating area. In terms of department store business, Tongling Beidou store, Binhu Xinyuecheng, and Baiyan Ole Life Plaza opened one after another. In terms of supermarket business, Hejiafu opened 23 new outlets throughout the year, adding 67,000 square meters of operating area. By the end of 2018, the company had 233 physical stores in its three business categories, department stores, home appliances, and supermarkets, which occupied favorable positions in the core business districts and sub-business districts of many cities in Anhui Province. The profit forecast was slightly raised to maintain the position of leading regional retail enterprises to maintain the “increase in holdings” rating companies, the business format is rich, the chain network continues to expand, and the company's revenue side recovery trend is obvious. We slightly raised the company's EPS forecast for 2019-2021 to 0.31/ 0.33/ 0.35 yuan, respectively (previously 0.30/ 0.32/ 0.34 yuan). Currently, the company's PE (2019E) is 18X, which is significantly lower than the average of the past three years (24X), and the PB (2019E) is 1.1X, which is significantly lower than the average of the past three years (1.7X), maintaining an “gain” rating. Risk warning: The business area is concentrated, and the length of the cultivation period for new stores exceeds expectations.