Texhong (002419) 2019 First Quarterly Report Review: Q1 is slightly lower than expected due to multiple factors

Texhong (002419) 2019 First 成都桑拿网 Quarterly Report Review: Q1 is slightly lower than expected due to multiple factors

Multiple factors affected Q1’s performance to be slightly lower than expected in the first quarter of 2019, and the company achieved operating income of 51.

78 ‰, a decrease of 0 per year.

82 points; net profit attributable to mother 3.

1.4 billion, an annual increase of 5.

25 points; net profit after deduction.

93 ppm, a ten-year increase of 7.

41 points.

In terms of product composition, retail business revenue was 47.

78 ppm, a decrease of 2 per year.

49 points; revenue from land business 2.

47 ppm, an increase of 30 per year.

31 points.

In terms of format performance, department store revenue has fallen by 10 per year.

11%, gross profit declines by 2 every year.

58%, supermarkets, shopping malls and convenience 佛山桑拿网 stores have performed well.

We expect that the poor performance of the department store sector is mainly due to: 1) poor sales of high-price products in the fall and winter due to the warm winter in South China; 2) the impact of Shenzhen Junshang store closing in 18Q4;

Profitability slightly increased the company’s gross profit margin in 2019Q1 to 27.

72%, increase by 1 every year.

70pct; total cost cost 19.

71%, an increase of 1 per year.

48 points.

As the gross profit margin increased, the company’s net profit margin rose by zero.

35pct to 6.

06%.

The signing of the store is progressing smoothly. It is expected that the exhibition store will speed up in 2019Q1 in 19 years. The company has a total of 319 stores. In the current period, 5/7 convenience stores were newly opened / closed.

Among them, the number of department stores / supermarkets / malls / convenience stores is 68/81/13/157, and the company has settled in 8 provinces in Guangdong, Jiangxi, Hunan, Fujian, Jiangsu, Zhejiang, Beijing and Sichuan.

In 19Q1, two community living center projects and 5 independent supermarket projects were newly signed.

The three major strategies of digitalization, experience, and supply chain, and the employee shareholding plan show confidence that the company’s strengthening of the three major strategies of digitalization, experience, and supply chain has a significant effect on improving the company’s profitability.

On January 15, the company announced that it plans to launch the second phase of the employee stock ownership plan, demonstrating development confidence.

Risks suggest that store expansion is less than expected; same-store growth is worse than expected.

Profitability continues to improve, business in Central China is working hard, maintaining “buy” rating company’s department store / shopping mall experience positioning is in line with current mainstream consumer trends, “one store, one strategy” + “Family-oriented, close to life”, multiple formats simultaneously, Digital, experiential, supply chain three strategies.

We expect the company to maintain a faster store opening rate in 2019.

The second phase of the employee stock plan was launched in January 2019, demonstrating the leadership’s confidence in future development.

It is estimated that the net profit for 2019/2020/2021 will be 10 respectively.

78/12.

91/14.

690,000 yuan, maintain “Buy” rating.