1H2019 revenue increased by 7.71% over the same period last year, and net profit from home increased by 121.61% compared with the same period last year.
1H2019 realized operating income of 1.374 billion yuan, an increase of 7.71% over the same period last year; realized net profit of 88 million yuan, equivalent to 0.32 yuan of fully diluted EPS, an increase of 121.61% over the same period last year, and realized deduction of 56 million yuan of non-return net profit, an increase of 33.32% over the same period last year. The company intends to increase 4.9 shares with capital reserve to all shareholders for every 10 shares. The company also issued a forecast for the first three quarters: 1-3Q2019 homing net profit is expected to increase by 76.17% 92.75% compared with the same period last year.
In a single quarter, 2Q2019 achieved an operating income of 653 million yuan, an increase of 9.37% over the same period last year, a net profit of 68 million yuan, an increase of 198.64%, and a non-return net profit of 37 million yuan, an increase of 53.19% over the same period last year.
The comprehensive gross profit margin increased by 0.59 percentage points, and the expense rate decreased by 3.31 percentage points.
1H2019's consolidated gross profit margin was 20.12%, up 0.59% from a year earlier.
The period expense rate of 1H2019 was 10.85%, down 3.31% from the same period last year, of which the sales / management / financial expense rate was 1.87%, 9.35% and 0.36%, respectively, representing a change of 0.03 /-3.09 and 0.25% over the same period last year. The decrease in the rate of management expenses is mainly due to the return of some paid employees in the company, resulting in the deduction of dismissal benefits back to management expenses.
After the completion of the mixed reform, look forward to the follow-up improvement of business efficiency.
In April 1919, Fangda Group became the controlling shareholder of the company, introducing an advanced, efficient and market-oriented management model for the company. With the gradual progress of the improvement process of the company's operation and management system, the company's fine management level and the driving force of operation and development are expected to be improved. The company continues to promote the upgrading process of the main stores, and it is expected that after the completion of the transformation, its customer gathering capacity and consumer experience will be effectively improved.
Raise profit forecast and maintain "overweight" rating
Based on the latest 416 million shares of equity after the conversion of the company's capital reserve into equity, taking into account the growth of the company's performance in the past 19 years due to the reversal of management expenses, as well as the improvement of future operating efficiency after the completion of the mixed reform, we raise our forecast for the company's fully diluted EPS in 19-21 to 0.35 / 0.30 / 0.31 yuan (previously 0.24 / 0.25 / 0.26 yuan), and the company has a certain regional market competitiveness. Maintain "increasing holdings"
Rating.
Risk hint: the operation of the main store did not meet the expectations, and the business improvement after the mixed reform did not meet the expectations.