The company's 1H2020 revenue decreased by 70.68% compared with the same period last year, and the return net profit-11 million yuan 1H2020 realized operating income of 403 million yuan, a decrease of 70.68% compared with the same period last year. The company realized net profit of-11 million yuan, equivalent to-0.03 yuan of fully diluted EPS, and 14 million yuan in the same period last year. The non-return net profit was deducted by 11 million yuan, a decrease of 80.41% over the same period last year, and the performance was in line with expectations. The company's operating income has a large decline, mainly due to the change of income criteria and the impact of the epidemic situation.
From the perspective of single-quarter split, 2Q2020 realized operating income of 199 million yuan, down 69.52% from the same period last year; realized net profit of 12 million yuan, down 82.59% from the same period last year; and deducted 11 million yuan of non-return net profit, down 68.71% from the same period last year.
The comprehensive gross profit margin rose 27.91 percent year-on-year, and the expense rate rose 28.11 percent during the period. 1H2020's comprehensive gross profit margin was 48.03 percent, up 27.91 percent year-on-year.
The expense rate of 1H2020 during the period was 38.96%, an increase of 28.11% over the same period last year, of which the sales / management / financial expense rate was 5.56%, 34.50% and 1.10% respectively, with a year-on-year change of 3.70% / 25.15% and 0.73% respectively.
Taking a variety of measures to deal with the impact of the epidemic, the company has carried out a variety of measures to deal with the impact of the epidemic on the main retail business. In the aspect of cost control, cost can be comprehensively reduced by stopping the outsourcing of cleaning business, standardizing various subsidy standards, reducing various handling fees and management fees, strengthening energy saving and reducing consumption, and reasonably planning to increase the use area of the warehouse. In terms of department store business, we have strengthened cooperation and communication with brands, which has won strong support from brands; we have expanded omni-channel marketing, and various live broadcast activities have led to the increasingly stable and mature operation of ZTE Mini Program. In addition, the company tested the convenience store format and opened two new direct operations and one to join the convenience store in Shenyang in March 2020, forming a large-scale convenience store business or opening up new space for the company's performance growth.
Profit forecast, maintain "overweight" rating
Considering the negative impact of the epidemic on the company's operation in the first half of the year, we lowered our forecast for the company's EPS for 20-22 years to 0.14 / 0.25 / 0.29 yuan (previously 0.26 / 0.30 / 0.32 yuan). The introduction of new controlling shareholders is expected to bring market-oriented operation philosophy, long-term business improvement can be expected to maintain the "overweight" rating.
Risk hint: the operation of the main store is not up to expectations, and the business improvement after the mixed reform is not up to expectations.