In 2019, the operating income decreased by 17.03% compared with the same period last year, and the return net profit decreased by 23.31% compared with the same period last year. In 2019, the operating income was 1.413 billion yuan, a decrease of 17.03% over the same period last year. The net profit achieved in 2019 was 279 million yuan, equivalent to 0.22 yuan in fully diluted EPS, a decrease of 23.31% over the same period last year. The non-return net profit was 256 million yuan, a decrease of 14.82% over the same period last year, and the performance was lower than expected, mainly due to the decrease in store sales compared to the same period last year, the reduction in the scale of import and export business transformation, and the continuous investment of resources during the exploration period of the big health business. The company intends to pay a cash dividend of 0.19 yuan (including tax) to all shareholders for every 10 shares.
From the perspective of single-quarter split, 4Q2019 realized operating income of 370 million yuan, down 36.47% from the same period last year; realized net profit of 37 million yuan, down 45.48% from the same period last year; and deducted 41 million yuan of non-return net profit, down 20.28% from the same period last year.
The comprehensive gross profit margin increased by 4.85 percentage points, and the expense rate decreased by 0.30 percentage points in 2019. The company's comprehensive gross profit margin was 52.52%, an increase of 4.85 percentage points over the same period last year.
The expense rate during the company period in 2019 was 18.30%, a decrease of 0.30% compared with the same period last year. Among them, the sales / management / finance / R & D expense rates were 10.01%, 7.77%, 0.01%, 0.52%, respectively, and the year-on-year changes were-1.36 / 0.46, 0.08, 0.52% respectively.
Continue to explore smart business, big health and other new business
During the reporting period, the performance of the company's main business of commercial real estate remained lacklustre, with property rental income increasing by 0.91% and store sales income (including fashion towns) falling by 21.86%. The company strives to promote the transformation and upgrading of the main business through the layout of smart business, set up Haining merchants live broadcast alliance, and cooperate with a number of head e-commerce businesses to provide the basis for building a full-category clothing supply chain base. The big health business has been promoted to the "second main business" by the company.
High, the scope of business continues to expand, service content continues to optimize, is still in the early stage of investment.
Downgrade earnings forecast and maintain "neutral" rating
Taking into account the impact of the epidemic on the company's property tenants and hotel business, we lowered our forecast for the company's EPS for 2020-2021 to 0.20 / 0.22 yuan (previously 0.23 / 0.23 yuan), and increased the forecast for 2022 to 0.23 yuan, maintaining a "neutral" rating.
Risk hint
The negative impact of the epidemic exceeded expectations, the supply of commercial real estate industry exceeded demand, and the downward pressure on rents exceeded expectations.
