Wangfujing (600859): Olle drives growth and department store restarts expansion

Wangfujing (600859): Olle drives growth and department store restarts expansion

Revenue increased slightly, Ole contributed a major increase in operating income in 2018 to achieve 267.

10,000 yuan (+2 year-on-year.

4%), net profit attributable to mother 12.

0 million yuan (+67 compared with the same period last year).

0%), deducting non-attributed net profit of 10.

70,000 yuan, an annual increase of 42.


Among them 4Q18 single quarter revenue 75.

10,000 yuan (+2 year-on-year.

7%); net profit attributable to mother 2.

10,000 yuan (+20 compared with the same period last year).


In terms of different business types, Q4 department store / shopping mall revenue fell by 2%, mainly due to the centralized closure of 4 department stores, and same-store sales increased by 1 in 2018.

67%, the comprehensive floor effect 青岛夜网 rose by 0.

230,000 to 1.

810,000 yuan / flat; the highest annual revenue of Ollai increased by 8.

5% (+9 in 4Q18).

7%), revenue accounted for 13.

5%, the company’s main growth point.

In terms of different regions, the southwest region has experienced rapid growth with an income share of 27.

5%, a growth rate of 4.

1%; from the perspective of reserve projects, the company’s marginal growth has replaced the southwest and northwest regions.

First-class stores closed and adjusted. During the period, expenses effectively controlled the comprehensive gross profit margin and fell back to 21.

2%, net margin rose to 4.


Expenses for the period 2018 are fourteen.

1%, a decline of 0 per year.

1pp, mainly due to labor cost savings from the expected closure of 4 stores.

Considering that the company’s newly 杭州夜网论坛 opened stores gradually completed the growth period from 2016 to 2017, there was only one new project opened at the end of 2018, and then the time-intensive replacement of the reserve project was made, and the major stores were closed and adjusted in a timely manner. The cost structure was continuously optimized, and the cost was expected to remain good during the period.control.

Streamline governance, expand in a timely manner, and maintain a “buy” rating. The company is one of the few domestic companies that has been proven to have cross-regional expansion capabilities. The industry has been under downward pressure to integrate the market and expand its scale.

The company has completed the merger of its parent company, the controlling shareholder and the BTG Group reorganized strategically, continued to optimize governance, reformed the incentive mechanism, and improved operating efficiency.

It is estimated that the revenue for 19-21 will be 282/306/332 trillion, which will be attributed to the mother’s net profit13.



300 million.

With reference to the historical estimates of peers and the company, considering the uncertainty of 19-year optional consumption recovery, the company will be given a 19-year 13xPE assessment (the average since the previous 14 years is 16).

4xPE discount is estimated at about 20%), corresponding to a reasonable value of 22 yuan / share, maintaining the “Buy” rating.

Risk warning: Consumption is picking up, same-store improvement is better than expected; online, convenience store, supermarket and other business attempts are not effective.Store rental pressure continued to increase.

The effect of SOE reform was lower than expected.