Texhong (002419) Quarterly Review: Continuously Optimized Operating Quality under Short-term Revenue

Texhong (002419) Quarterly Review: Continuously Optimized Operating Quality under Short-term Revenue

The department store business was dragged down by the warm winter and weak clothing consumption. The supermarket steadily developed the company’s 1Q19 financial report and achieved 51 revenue during the period.

78 ppm, with a ten-year average of zero.

82%; net profit attributable to mothers3.

14 ppm, a 北京夜网 five-year increase of 5.


Among them, the main retail business income was 47.

$ 78 trillion, an average of 2 per year.

49%; real estate income 2.

470,000 yuan, an increase of 30 in ten years.


According to the financial report, the company had 68 department stores, 13 shopping malls, and 81 supermarkets at the end of 1Q19, all at the same level as at the end of 18; it had 157 convenience stores, a net increase of 5 earlier at the end of 18 years.

In terms of store operation quality, the company’s same store segmentation in the first quarter of 19 2.

75%, of which department store same store level 10.

11%, mainly due to the warm winter, weak clothing consumption and the Junshang Center store (closed at 10M18); shopping malls / supermarkets / convenience stores increased by 1 in the same store respectively.

59% / 10.

63% / 2.


By region, South China and Central China still contributed the company’s main revenue, accounting for 61% respectively.

7% and 19.

5%; 19Q1 South China District same store replacement 3.

29%, same store in Central China increased by 2.

03%, the same stores in other regions have different amplitude deviations.

Gross margin is 27.
1 quarter.

72%, increase by 1 every year.


In terms of different regions, the gross profit margin of South China and Central China is 26.

92% and 25.

02%, 0 each year.

32pp and 1.

36pp, the new expansion area still optimizes the space.

Sales management expenses in the first quarter of 1919.

82%, increase by 1 every year.

4pp; Taken together, the net profit margin in 1Q19 is 6.

06%, a year to promote 0.


Profit forecast and investment advice The company focuses on digital, experiential, and supply chain to consolidate terminal operations and supply chain capabilities, continuously optimize customer acquisition capabilities and user length of time in the store, and perform management output, and is committed to fully motivating employees and Tencent digitalTo further improve operational efficiency.

The company ‘s existing stores account for about 25% of new stores since 2016. The new store will usher in a cycle of performance release. It is estimated that the net profit attributable to mothers will be 10 in 19-21.
5 billion, 11.
800 million, 1.4 billion, the expected three-year compound growth rate of 16%, taking into account the company’s industry leader position and the expansion 厦门夜网 capacity of extension, given 19 times 18 times PE, equivalent to a reasonable value of 15.

5 yuan / share, maintain “Buy” rating.

Risk warning: industry competition continues to intensify, and consumer recovery is not up to expectations; new business models are incubating, and strategic cooperation with Tencent is gradually expected; the number and quality of regional expansion stores exceed expectations.