Hongqi Chain (002697) 2019 Third Quarterly Report Review: Revenue Growth Accelerates, Investment Income is Beautiful

Hongqi Chain (002697) 2019 Third Quarterly Report Review: Revenue Growth Accelerates, Investment Income is Beautiful
Revenue growth accelerated in the third quarter of 19 The company achieved operating income20.58 ppm, an increase of 11 years.59%; net profit attributable to mother 1.69 ppm, a 67-year increase.51%; basic profit return is 0.12 yuan.The increase in revenue is mainly due to: 1) Acceleration of store openings: 1) According to the termination of the company’s official website on October 17, the total number of company stores reached 3030, with a net opening of 141 in the first half of the year and the remaining 2958 stores in the first half of the year.2) The total increase in investment income of Xinwang Bank: in 2018 was 55.29 million yuan, while 1H19 confirmed investment income of 70.03 million yuan and 3Q19 was 55.82 million yuan. The gross profit margin remained stable, and the net profit margin increased by 19Q3. The company’s comprehensive gross profit margin was 29.72%, a slight decrease of 0 a year.12pct, basically stable.Selling costs CO2 21.59%, a decrease of 1 per year.00pct, overhead rate 1.59%, increasing by 0 every year.35pct; total cost cost 22.95%, optimized every year 1.11 points.The company’s net interest rate increased significantly, and the net interest rate in the third quarter of 19 was 8.23%, an increase of 2 a year.74pct, mainly benefit from cost optimization and increased investment income. Store upgrades accelerated, and omni-channel layout companies accelerated the upgrade and transformation of some stores to meet consumers’ more shopping needs and improve consumer shopping experience.When upgrading and transforming the stores, we will actually analyze the specific problems and set up fresh stores, boutiques, and 24-hour stores.While the company continues to promote the development of its online platform, it has expanded its sales channels through cooperation with Meituan, Hengma and other online sales platforms. Risk reminder The cooperation progress with Yonghui was less than expected, and the store renovation progress was less than expected. The performance exceeded expectations, the omni-channel exploration accelerated, and the main business of the company was maintained as an “overweight” rating. The main business of the company is to facilitate the operation of supermarket chains.Effective transformation of the company to create “cloud platform big data + commodities + community services + finance” 深圳桑拿网 Internet + modern technology chain company.Due to the increase in investment income contributed by Xinwang Bank, we have raised our profit forecast and expect net profit for 2019/2020/2021 to be 5 respectively.07/5.75/6.1.9 billion (was 4).48/5.09/5.3.6 billion), maintaining the “overweight” rating