Wangfujing (600859) Q1 2019 Review: Performance basically meets expectations Trying to benefit from pick-up in optional consumption

Wangfujing (600859) Q1 2019 Review: Performance basically meets expectations Trying to benefit from pick-up in optional consumption

The company achieved revenue of 71 in 1Q2019.

6.5 billion, net profit attributable to mothers4.

On the evening of April 29, 30,000 yuan, the company announced the first quarter report of 2019, and achieved 71 in the first quarter of 2019.

65 ppm, an increase of 0 in ten years.

21%, net profit attributable to mothers4.

30,000 yuan, which translates into a fully diluted EPS of 0.

52 yuan, a reduction of 11 per year.

27%, realizing net profit deducted from non-mother3.

94 ppm, a reduction of 10 per year.

96%, performance basically in line with expectations.

1Q2019 gross profit margin rose by 0.

02 averages, the expense ratio increased by 2 during the period.

In the three quarters of 1Q2019, the company’s comprehensive gross profit margin was 20.

91%, a year-on-year increase of 佛山桑拿网 0.

02 units.

The gross profit margin of the company’s main retail business in the first quarter of 2019 was 16.

26%, a decrease of 0 compared with the same period last year.

12 units.

Company expenses for the first quarter of 201913.

47%, of which the sales / management / financial expense ratio is 9 respectively.

87% / 3.

56% / 0.


During the first quarter of 2019, the company’s period expense ratio increased from the same period of the previous year2.

03 units, of which the financial expense ratio increased by 1 over the same period last year.

85 units.

In the first quarter of 2018, the company’s large amount of certificates of deposit expired, supplementary interest income was recognized, and financial expenses were -1.

30 ppm, compared with 290 financial expenses for the first quarter of 2019.

400,000 yuan.

The scale advantage is obvious, and the business format is complete. The growth of the Olay business format continued rapidly until the end of March 2019. The company operated a total of 51 large-scale retail stores with a total operating floor area of 264.

60,000 square meters, involving 31 cities in 21 provinces and cities, forming a national operating network, covering a variety of formats such as department stores, shopping malls, Ole.

The company’s Ole business has developed rapidly, with revenue increasing in 20188.

52%, revenue in Q1 2019 increased by 10 in ten years.


At the beginning of 2018, the Beijing State-owned Assets Supervision and Administration Commission merged the company with the BTG Group, a new step in the reform of state-owned enterprises. The BTG Group has a number of listed companies including Wangfujing and Shoushang Co., Ltd., which have committed to propose to resolve inter-bank competition by February 2021.A feasible solution to the problem.

Maintain profit forecast and maintain “Buy” rating. The company has obvious advantages in scale, complete formats, and Olay’s format has grown rapidly. Since March 2019, the optional consumption recovery trend has strengthened, which is beneficial to the company.

We maintain our forecast for the company’s 2019-2021 EPS, which are 1.


92 yuan, the company’s current PE (2019E) is 11X, significantly lower than the average of the past three years (17.

4X), maintain “Buy” rating.

Risk warning: After the lease renewal, the rent standard increases too much, and the store consolidation speed is not as expected.