Wangfujing (600859) company financial report comment: Olay format promotes revenue growth and profits have improved under pressure

Wangfujing (600859) company financial report comment: Olay format promotes revenue growth and profits have improved 武汉夜网论坛 under pressure

[Investment Highlights]Wangfujing released its 2019 Interim Report.

At the core of the report, the company achieved operating income of 134.

2.2 billion, an annual increase of 1.

69%; Realize net profit attributable to shareholders of listed companies.

99 ‰, a decrease of 7 per year.


North China and Southwest China are still the main sources of income, and Northeast China has the highest income growth.

North China and Southwest China are the traditional deep cultivation areas of the company, with a total revenue share of over 60%.

In the first half of the year, due to the impact of macroeconomics and democratic store closures, revenue in North China was slightly inclined.

55%, gross profit margin also decreased by 0.

43 units, revenue breakdown in Southwest China 2.

35%, gross margin has not changed much in ten years.

The company’s newly entered Northeast China in 17 years saw the most significant growth, with a 74% increase in revenue.

2%, gross margin increased by 5.

45 averages to 15.


Olay business maintained a high growth rate.

In terms of different types of business, department stores / shopping malls accounted for the main part of the company’s revenue, accounting for over 82%, and the revenue was slightly lower than the previous year.

The growth rate of the company’s business format is relatively fast, with a growth rate of 22 in the first half of the year.

75%, but the format itself has a relatively high gross margin.

The expense ratio increased during the period, and the net interest rate decreased.

Period expenses increased. Expenses increased financial expenses compared with the previous year, mainly due to the decrease in interest income and the increase in interest expenses.

In addition, management expenses have also increased, mainly due to the rapid increase in wages.

Taken together, the company’s expense ratio increased by 1.

25pct, net interest rate dropped by 0.

6 points.

[Investment suggestion]Affected by the macro economy and the closure of the store, the company’s revenue in the first half of 2019 was slightly lower than expected. Based on the forecast of the second half of the year, we lowered our profit forecast.

Generally speaking, the company’s fundamentals remain stable. The opening of new stores in the next few years will further increase the company’s expansion. The development of the Olle industry and new supermarket formats will promote revenue growth.Revenue was 276.



5.9 billion yuan, net profit attributable to mother 11.



0.2 million yuan, EPS 1.



81 yuan, corresponding to PE 9/9/8 times, maintaining the “overweight” level.

[Risk reminder]The growth rate of the macro economy is lower than the expected risk; the speed and quality of the company’s exhibition shops are lower than expected.