6% increase from the previous month optimistic about the long-term growth of the leader
Rainbow shares (002419): 2Q19 revenue increased by 4.
6% increase from the previous month optimistic about the long-term growth of the leader
The company released its semi-annual report for 2019 on August 16.
In the first half of 2019, revenue was 96.
76 ppm, an increase of ten years.
61%; net profit attributable to mother 5.
30,000 yuan, an annual increase of 3.
65%, deducting non-net profit 4.
51 ppm, a ten-year increase4.
The diluted EPS is 0.
42 yuan; expected average return on net assets 7.
56%, net operating cash flow -3.
Brief comments and investment recommendations.
The company’s revenue in the second quarter of 2019 increased by 4.
The net profit increased by 6% from the previous month.
1%, excluding the impact of real estate and Junshang Center stores closing, the profit growth in 2Q19 is estimated to be 2.
3%, mainly due to the decline in profit elasticity of new stores.
Daqian opened 2 new stores in Foshan, Ji’an in 2Q19, and signed 5 new contracts. In July, it opened 2 new stores in Shenzhen and Putian. We expect to open 10 new stores or more in 2019.
1. Revenue appreciation in the first half of 20191.
61% to 96.
76 ppm, gross margin increased by 1.
79 points to 28.
Which 1Q19 dropped 0.
82%, 19Q2 increased by 4.
57%, a month-on-month increase in speed. We judge that the growth rate in 2Q19 increased due to the double improvement of opening and same-store.
19Q1 / 2Q19 comprehensive gross profit margin each increased by 1.
7pct and 1.
In terms of products, 1H19 daily necessities, food growth was even higher, and income increased by 15 each.
59% / 13.
24%; catering and entertainment income reached 18.
The growth rate of 87% reflects the good results of the transformation of the new format; the gross margin of electrical appliances / cosmetics / shoes and leather goods has improved, increasing by 16 respectively.
23 units. By region, East China and Central China New District maintained rapid growth in the same store in the first half of the year, and gross profit increased by 13 respectively.
85% and 9.
4%, the total profit increased by 81.
31% and 30.
In the first half of 2Q19 in South China’s old district, same-store revenue decreased slightly by 0.
53%, of which 1Q19 was downgraded by 3.
29%, estimated 2Q19 increased by 2.
23%, a significant improvement from the previous quarter.
In terms of division, shopping malls and supermarkets grew better. The same-store revenue of shopping malls remained basically flat in the first half of the year, and gross profit and profit maximization increased respectively.
51% and 56.
64%; same-store revenue of supermarkets increased by 9 in the first half of the year.
07%, gross profit and profit maximization increased respectively.
59% and 20.
2. Two new stores opened in 1H19, 317 stores at the end of the period (83 large stores), and five large stores were signed.
① Opening stores: In the first half of the year, the company continued to expand its store network, opening 2 new stores (Foshan Shopping Center, Ji’an Chengnan Shopping Center) and 18 convenience stores; in July, it opened the first community living center in Shenzhen, Ruihong Rainbow, and in PutianLaunched Rainbow City Shopping Center (joined).
② Close shop: sp @ ce Huiyang Xinjie Town Chengjie Yitiandi shop, due to the needs of the other party’s business transformation, terminated the cooperation in advance on June 1; 1H19 closed 25 convenience stores.
③ Contracts: 5 shopping mall and department store projects and 8 independent supermarket projects were signed in the first half of the year.
At the end of 1H19, the company has settled in 25 cities in 8 provinces / cities in Guangdong, Jiangxi, Hunan, Fujian, Jiangsu, Zhejiang, Beijing, and Sichuan. It has a total of 15 shopping malls 杭州桑拿网 (including franchise and 4 management outputs) and 68 department stores.(Including 3 franchisees), 82 supermarkets (including 9 independent supermarkets), 152 convenience stores, with a total area of 3.2 million square meters.
3, 1Q19 and 2Q19 expense ratio each increased by 1.
48pct and 1.
64pct, mainly due to the increase in sales expense ratio.
In the second quarter of 19, the company’s sales expense ratio increased by 1.
39 averages to 21.
58%, of which hydropower + property rent + depreciation amortization rate increased by 0.
76 units; the management expense rate increases by 0 every year.
12 up to 2.
3%, 19Q2 financial income decreased by 541 times to 1.98 million; the final overall period expense ratio increased by 1.
64 up to 23.
4. The net profit attributable to the mother increased by 1 in 2Q19.
1% to 1.
9 ppm, excluding the impact of real estate and Junshang Center stores closing,南京桑拿网 the profit growth in 2Q19 is estimated2.
Non-operating net income changed little in the second quarter, and profits increased.
28% to 2.
49 trillion, the effective tax rate increased by 3.
15 up to 23.
78%.Overall net profit attributable to mothers increased by 3 in the first half of the year.
65% to 5.
03 trillion, of which 1Q19 and 2Q19 return to the mother net profit each increased by 5.
25% and 1.
1%, it is estimated that after excluding real estate and Junshang Center store closures, 1Q19 and 2Q19 increased by 8 respectively.
97% and 2.
5. Key business progress in 2019: (1) Continue to promote the format upgrade: ① Department stores: The store continues to experiment with the first floor of the block, and thematic adjustments for other themes; through the creation of space aesthetics, VMD themed showrooms, and counter PAD recommendations,Life aesthetics services; promote customer intimate services through parent-child intimacy, big customer intimacy, community intimacy, and intelligent interactive experience projects; and explore community life centers.
②Shopping center: to create a happy life center, focusing on happy hours and family life.
In the first half of the year, the Foshan Tianhong Shopping Center featured a Runlike sports-themed block; YES Street, a child-themed block was successfully copied in many places.
(2) Continue to deepen digital retail: ① Supermarket: In the first half of the year, the online supermarket group business was developed, and customers gathered online and offline to pick up the goods. The joint consumption rate exceeded 50%; staying at the end of 1H19, the supermarket “Tianhong Home” salesIncreased by 46% in the first half of the year.
②Department store: Store counters are launched to guide the company ‘s WeChat function. Brand merchants use corporate WeChat to add customer WeChat for online member management, order management, and user marketing operations. The department store mini-program trial runs, and the number of WeChat service store counters continues to increase.Sales are growing by more than 200% annually.
③Members: As of the end of 1H19, the total number of members of the company is about 20.43 million, of which the number of digital members is about 18.82 million.
(3) Optimize the supply chain: ① Further deepen the strategic core commodities such as direct mining at home and abroad, private brands, and service goods.
Among them, international direct mining has achieved sales growth of ten years43.
2%; direct sales of fresh produce achieved sales growth23.
2%; private label sales growth increased 32.
1%; In response to urban white-collar workers’ demand for convenience, health, and rapid development of 2R (cooking and eating) products and processing services, the sales of 2R products increased by 53%.
② Vigorously promote the national integration of the supply chain, ending the end of 1H19, and completed a total of 46 national supplier agreements; completed the national logistics warehouse network plan, and reached a cooperation with SF Express across the country’s 12 trunk transportation networks.
③ Convenience stores focus on five meals a day, construct the core competitiveness of differentiated products, introduce local specialties and substitute convenience products.
Maintain judgment of the company.
The company started a comprehensive transformation in 2013, with incentives at all levels and full coverage of incentives; building core competitiveness around digital, experiential, and supply chains, leading the industry’s development and innovation, with integrated output capabilities; rich store stores, speeding up store openings, and innovative management outputMode, the efficiency and gross profit margin of sub-new districts are closer to mature regions.
Through continuous intensive cultivation and cultivation of internal skills, the company’s overall performance is guaranteed to grow steadily, and its peers will follow.
Update profit forecast.
Assuming that the real estate revenue recognized in 2019 is the same as in 2018, the net profit is expected to be 10 each in 2019-2021.
2.7 billion, 11.
7.7 billion, 13.
90,000 yuan, an increase of 13 in ten years.
1%, of which the retail main business net profit is 9 each.
6.1 billion, 11.
5.2 billion, 13.
90,000 yuan, an increase of 14 in ten years.
Considering that the company is one of the leading department stores, it is one of the few retail enterprises that realizes business format adjustment and transformation and upgrading through endogenous innovation. It has the ability and opportunity to promote industry integration. It can give a certain estimated premium to 2019.The main retail profit is 18-20 times PE, plus the net profit of real estate in 2019 is 0.
66 ppm, corresponding to a reasonable value range of 14.
46-16.06 yuan, maintaining the “primary market” rating.
Outward expansion exceeded expectations; new store incubation period lengthened; real estate project sales were lower than expected; increased competition risks.