Wangfujing (600859): Department store slightly pressured Olay to grow steadily

Wangfujing (600859): Department store slightly pressured Olay to grow steadily

Department stores were under slight pressure, and Ole’s steady 杭州桑拿 growth Wangfujing released the third quarter report of 2019, and the first three quarters achieved revenue of 194.

0 ppm, an increase of 1 in ten years.

1%, net profit attributable to mother 8.

500 million, down 14 every year.

3%, net profit of non-attributed mothers 7.

500 million, down 21 a year.

2%; after excluding the impact of financial expenses and other operating income, operating profit at comparable calibers fell by 1.


Q3 single quarter revenue was 59.

80,000 yuan, ten-year average of 0.

3%, net profit attributable to mother 1.

500 million, down 36 a year.

6%, net of non-attributed net profit 2.

0 billion, down 6 a year.

5%; after excluding financial expenses and other operating income effects, operating profit under comparable calibers fell by 13.


In terms of different business types, Q3 single-quarter department store / shopping mall revenue was 6 semi-annually.

1%, the main income accounted for 82.

4%, the gross profit margin is relatively flat; Ole reversed the trend by 26.

7%, gross margin decreased by 0.


Considering the centralized closure of 4 department stores from the end of September, 2018 to the end of the year, resulting in lower revenues, a drag on the department store sector and overall performance. If the above-mentioned influencing factors are excluded, it is estimated that Q3 department store operations are generally stable.

In terms of different regions, the Northeast region still maintained high growth, and Q3’s single quarter revenue increased by 61% to 3.

5 trillion (It is said that the contribution of Changchun Scitech Ole increased gradually from the end of 18), the growth rate of Central China and East China has picked up, and the Q3 revenues of the two main regions of North China and Southwest China have decreased by 9 respectively.

4%, 5.


At the end of Q3, Kunming Wangfujing Dianchi Town Outlet was added, with a total construction area of 12.

80,000 square meters.

With reference to the company’s project reserve, it is expected to supplement Xining Wangfujing Xinqian Shopping Center in the fourth quarter.

In Q3, the quarterly comprehensive gross profit margin decreased by 0.

21pp to 21.

3%, the sales expense ratio increased by 0 this quarter.

64pp to 12.

2%, the management expense rate is flat at 3 every year.

5%, the financial expense ratio dropped by 0.

08pp to 0.


In the fourth quarter, the low base is expected to usher in a rebound in growth, bringing expected repairs. Wangfujing is one of the few domestic leaders with proven cross-region expansion capabilities. The current estimated level of 1x PB reflects the market’s pessimistic expectations for terminal 杭州桑拿网 consumption.It is expected that the growth rate will pick up at a low base, which will bring estimated repair prices.It is estimated that the revenue for 19-21 will be 272/279/286 trillion, EPS1.



55 yuan / share, referring to the estimated level of about 13xPE of comparable companies, giving Wangfujing’s 19xPE estimate for 19 years, corresponding to a reasonable value of 18.

46 yuan / share, maintain “Buy” rating.

Risk warning: Consumers pick up, same-store improvement is better than expected; online, convenience store, supermarket and other business attempts fail; store rental pressure continues to increase; governance mechanism reform effect exceeds expectations