The company's 1H2019 revenue decreased 3.34% compared with the same period last year, and its net profit increased by 14.67% compared with the same period last year.
1H2019 realized operating income of 6.22 billion yuan, down 3.34% from the same period last year; realized net profit of 641 million yuan, equivalent to 0.37 yuan of fully diluted EPS, an increase of 14.67% over the same period last year; and realized net profit of 625 million yuan, an increase of 20.11% over the same period last year, and the performance was in line with expectations.
In a single quarter, 2Q2019 realized operating income of 2.826 billion yuan, down 1.34% from the same period last year; realized net profit of 304 million yuan, up 21.01% from the same period last year; and deducted 292 million yuan of non-return net profit, an increase of 20.89% over the same period last year.
The comprehensive gross profit margin increased by 1.85 percentage points, and the expense rate increased by 0.19 percentage points during the period.
1H2019's consolidated gross profit margin was 30.12%, up 1.85% from a year earlier. The increase in gross profit margin is mainly due to the increase in profitability brought about by the adjustment of the format, as well as the decline in the proportion of supermarket business with relatively low gross margin.
The expense rate of 1H2019 during the period was 14.38%, an increase of 0.19% over the same period last year, of which the sales / management / financial expense rate was 9.48%, 2.15% and 2.75%, respectively, and changed by-0.10 / 0.01 pesque 0.28% over the same period last year.
Various formats have been continuously adjusted, and profitability has been improved.
During the reporting period, the company did not add / close stores, with 34 stores in various formats. During the reporting period, the company continued to adjust and optimize its business format, and the scale of comprehensive super business in Chengdu continued to shrink. At the same time, it was decided to transfer the assets and store management rights of 12 supermarkets in Hohhot and Baotou to a third party for operation and management from July 1, so as to further enhance the company's profitability. In terms of department store business, we will steadily promote the transformation of shopping centers and optimize and adjust them in accordance with the principle of adjusting measures to local conditions, in an effort to improve customer experience and increase passenger flow. The adjustment work promoted by the company in various formats has brought about an upward trend in the overall gross profit margin.
Raise profit forecast and maintain "overweight" rating
The company's profitability has improved, and we have raised our forecast for fully diluted EPS for 19-21 to 0.76 / 0.80 / 0.84 yuan (previously 0.73 / 0.76 / 0.79 yuan). The company's PE and PB are at a lower level in the industry and maintain an "overweight" rating.
Risk Tips:
Regional economic growth is not up to expectations, the acquisition of store integration is not up to expectations.
