In 2019, the company's operating income increased by 2.28%, while the return net profit decreased by 24.27%. In 2019, the operating income was 9.362 billion yuan, an increase of 2.28% over the same period last year, and the net profit was 223 million yuan, equivalent to a fully diluted EPS of 0.25 yuan, a decrease of 24.27% over the same period last year. Realized deduction of non-return net profit of 127 million yuan, a decrease of 16.31% compared with the same period last year, and the performance was lower than expected, mainly due to the pressure on the company's department store and catering operation, as well as the asset impairment loss of 18.4919 million yuan by 4Q2019. The company intends to distribute a cash dividend of 1.80 yuan (including tax) to all shareholders for every 10 shares.
In a single quarter, 4Q2019 realized operating income of 2.512 billion yuan, an increase of 4.91% over the same period last year; realized net profit of-19.97 million yuan, compared with 53.49 million yuan in the same period last year; and realized non-return net profit of-20.07 million yuan, compared with-70.7 million yuan in the same period last year.
The consolidated gross profit margin rose 0.19 percentage points, and the expense rate rose 0.13 percentage points during the period. In 2019, the company's comprehensive gross profit margin rose by 12.57%, up 0.19 percentage points from the same period last year.
The expense rate during the company period in 2019 was 9.95%, an increase of 0.13% over the same period last year, of which the sales / management / financial expense rate was 4.17%, 5.45% and 0.32%, respectively, and the year-on-year change was-0.20%, 0.40%, 0.07%, respectively.
The main retail business is under great pressure.
During the reporting period, the revenue of the company's department store retail and catering and food business decreased by 3.07% and 4.99% respectively compared with the same period last year, and the gross profit margin decreased by 0.29 / 4.11% compared with the same period last year. It is expected that it will be more difficult to improve through internal business adjustment. The company's 7-11 business in Hubei has more than ten exhibition stores at the end of the reporting period, which is still in the early stage of exploration. As for the automobile business, revenue increased by 3.01% during the reporting period, and gross profit margin increased by 0.61% over the same period last year, which may be the main business for the company to maintain its performance in the short term.
Downgrade profit forecast to "neutral" rating
Taking into account the negative impact of the epidemic on the company's main retail business, we lowered our forecast for fully diluted EPS for 2020-2021 to 0.08 / 0.15 yuan (previously 0.34 / 0.37 yuan), and increased our profit forecast for 2022 to 0.16 yuan. The company's performance is under great pressure and downgraded to "neutral" rating.
Risk hint
The negative impact of the epidemic exceeded expectations, the automobile business was lower than expected, and the performance of middle and high-end department stores was lower than expected.
