公司营业收入主要来自华北、西南和西北地区，其中华北地区收入占比达到50.68%。1H24 公司华北/华中/华南/西南/西北/华东/ 东北收入分别为32.45/4.53/2.49/12.62/6.14/3.38/2.43 亿元，对应地区收入增速同比各变化+0.62%/-13.39%/+32.03%/-12.62%/-10.20%/+3.89%/+8.83%，营业收入占比分别为50.68%/7.07%/3.89%/19.70%/9.59%/5.28%/3.79%。华南地区营业收入同比增幅较高，主要是区域内门店尚处于起步阶段；东中地区、西南地区及西北地区营业收入同比下降主要受市场环境及公司业态分布影响所致。Incident: Wangfujing released its 2024 semi-annual report. 1H24 achieved revenue of 6.035 billion yuan/yoy -5.4%. Excluding the new store factor, the same store fell 7.33% year on year, mainly affected by insufficient consumer confidence and consumption growth falling short of expectations. The company's net profit to mother was 0.293 billion yuan/yoy -43.36%, after deducting non-return net profit of 0.32 billion yuan/yoy -30.13%. 2Q24 achieved revenue of 2.727 billion yuan/yoy -9.49%, net profit attributable to mother 0.091 billion yuan/yoy -68.65%, and net profit not attributable to mother 0.127 billion yuan/yoy -45.81%. Overall, the decline in net profit due to the first half of the year was mainly affected by factors such as falling operating income, cultivating new businesses and new stores, high upfront costs of new stores with a longer rental period due to new leasing guidelines, and changes in the fair value of shares held.
The company's profitability declined due to falling revenue and rising rates. In terms of profitability, 1H24 achieved a gross profit margin of 40.94% /-1.01pcts, which was mainly affected by the decline in revenue. In terms of expense ratio, 1H24's sales/management/ financial expense ratios were 13.76%/13.63%/1.78%, and the year-on-year change was +0.44/+1.32/-0.08pcts. Under the combined influence, the company's net profit margin was 4.86%/-3.26pcts. 2Q24 achieved a gross profit margin of 40.60%/-0.41 pcts, and 2Q24 achieved a sales/management/ financial expense ratio of 14.28%/11.71%/3.32%, with year-on-year changes of +0.91/+1.28/+1.92 pcts, respectively. Under the combined influence, the company's net profit margin to mother was 3.34%/-6.32pcts.
The duty-free business grew rapidly under a low base, and shopping centers and Olay businesses maintained resilient growth. The revenue of 1H24's department store/ shopping center/ outlet/ specialty store/ duty-free business was 23.19/15.42/1.14/0.758/0.172 billion yuan, with year-on-year changes of -13.65%/0.01%/0.20%/-3.09%/121.17%; at the same time, the company's corresponding business revenue accounted for 35.60%/23.68%/17.51%/11.64%/2.64%, respectively; in terms of gross margin, department store/shopping center/outlet /Specialty store/duty-free gross margin was 34.77%/ 44.41%/60.83%/16.36%/16.30%, respectively, with year-on-year change of -0.83/-3.46/-2.16/-1.98/-4.94pcts. Since the company comprehensively considered the development prospects of the supermarket industry and the current operating status of its joint venture supermarkets, it was decided to terminate the company's joint venture supermarket business and implement the launch. Judging from the overall business performance, due to changes in the consumption structure, the share of the shopping center business revenue in the company's revenue increased further, reaching 23.68%. The duty-free business is still in its infancy. Revenue increased by 121.17% over the same period. Affected by factors such as operating area, the revenue share was only 2.64%.
The company's revenue mainly comes from North China, Southwest China and Northwest China, with North China accounting for 50.68% of revenue. 1H24's revenue in North China/Central China/South China/Southwest/Northwest/East/Northeast China was 32.45/4.53/2.49/12.62/0.614/0.338/0.243 billion yuan, corresponding to year-on-year changes in revenue growth rates of +0.62%/-13.39%/+32.03%/-12.62%/-10.20%/+3.89%/+8.83%, accounting for 50.68%/7.07%/3.89%/19.70%/9.59%/9.59%/ 5.28%/3.79%. The year-on-year increase in revenue in South China was high, mainly because stores in the region were still in their infancy; the year-on-year decline in revenue in the East Central region, Southwest China and Northwest China was mainly affected by the market environment and the distribution of company formats.
Investment advice: In the first half of the year, the company's performance was pressured by consumption growth falling short of expectations. We expect it to have an impact on full-year results. Based on this, we lowered our full-year results. We expect the company's net profit to be 0.65/0.935/1.239 billion yuan respectively in 24-26, corresponding to a PE of 22X/15X/12X in 24-26, maintaining the “recommended” rating.
Risk warning: Passenger flow recovery falls short of expectations, falling rents, and insufficient consumer confidence.
