Hefei Department Store (000417): Performance exceeded expectations Expected shareholding companies drag down performance

Hefei Department Store (000417): Performance exceeded expectations Expected shareholding companies drag down performance

1H2019 company revenue increased by ten in ten years.

95%, net profit attributable to mothers fell by 16.

56% 1H2019 achieved 59 operating income.

63 ppm, a six-year increase of 6.

95%; net profit attributable to mothers1.

3.7 billion, which translates into a fully diluted EPS of 0.

18 yuan, a decrease of 16 per year.

56%; net profit deducted from non-attributed mothers1.

5.0 billion, a decrease of 32 every year.

75%, performance was lower than expected.

The company’s net profit attributable to its mother contracted and decreased, mainly due to the intensified competition in the regional market and the company’s equity investment in Huarong Consumer Finance Company confirmed investment losses of 4031 million.

In terms of single quarter breakdown, operating income in the second quarter of 2019 was 24.

32 ppm, a ten-year increase3.

34%; net profit attributable to mothers was 16.6 million yuan, a decrease of 66 a year.

95% of the net profit of non-returned mothers deducted 4.82 million yuan, a year of 89 reduction.


Comprehensive gross profit margin increased by 1.

72 averages, during which the expense ratio rose by zero.

The average gross profit margin of the 38 companies with average 1H2019 was 20.

29%, an increase of 1 over the same period last year.

72 units.

1H2019 company period expenses13.

26%, a year-on-year increase of 0.

Of the 38 samples, the sales / management / financial expense ratio was 4 respectively.

14% / 8.

91% / 0.

21%, a change of 0 compared with the same period last year.



18 units.

The supermarket tested the franchise model, and the participating companies 武汉夜生活网 continued to drag down their performance. At the end of the reporting period, the company operated a total of 236 stores in department stores, supermarkets, and home appliances.

The company’s supermarket business has started the franchise mode. Currently, it has opened 5 franchise stores. Because the franchise stores are still in the early stages of development, the franchise fee is only introduced to franchisees. Franchise sales are not included in the company’s revenue.The strengthening of the market still needs to be further judged in the light of future exhibitions and revenue.

The investment of Huarong Consumer Finance Co., Ltd. and Anhui Airport Baida Qixingxing Cross-border E-commerce Co., Ltd., which the company has a shareholding in, has reduced investment by 40.31 million yuan and 36, respectively.

620,000 yuan, a drag on the company’s performance.

Downgrade profit forecast and maintain “overweight” rating. The company ‘s main retail business is affected by macroeconomic uncertainty and intensified regional market competition. Under pressure from revenue growth and expenses, we lower our forecast for the company ‘s fully diluted EPS for 19-21 to 0.



31 yuan (previously was 0.31/0.


35 yuan), the company’s P / B ratio decreased, maintaining the “overweight” level.

Risk Warning: The business areas are widely concentrated, and the length of the new store incubation period is longer than expected.