6% net profit increased by 3.
5% increase in fees weighs on performance
BBK (002251) company annual report comment: 2018 revenue increased by 6.
6% net profit increased by 3.
5% increase in fees weighs on performance
Investment Highlights: BBK released its 2018 annual report on April 20.
The report initially achieved total operating income of 184.
6 ppm, an increase of 6 in ten years.
6%; total profit 2.
21 trillion, a slight increase of 0 a year.
09%; attributable net profit 1.
56 ppm, a 10-year increase3.
45%, deducting non-net profit 1.
ppm, a decrease of 3 per year.
In 2018, the company’s diluted silica revenue was zero.
18 yuan, expected return on net assets2.
24%; Black operating cash flow1.
2018 distribution plan: the total share capital is planned.
With 6.4 billion shares as the base, a cash dividend of 1 yuan (including tax) will be distributed to all shareholders for every 10 shares.
Business plan for 2019: The main business income will maintain a steady growth trend, and the change in net profit will be 0% -30%.
In addition, the company announced the 1Q2019 quarterly report on April 27.
The report initially achieved total operating income of 56.
3.4 billion every year 2.
57%; total profit 2.
48 ppm, an increase of 4 per year.
38%; Attributable net profit1.
86 ppm, a 10-year increase3.
47%, deducting non-net profit1.
84 ppm, an increase of ten years8.
Diluted earnings for the first quarter of 19
215 yuan, return on net assets 2.
45%; any operating cash flow1.
Brief comments and investment recommendations.
In 2018, 38 new supermarkets and 2 department stores were opened, 15 were closed, and the total number of stores at the end of the period was 341.
The company opened 38 new supermarket stores in 2018, closed 15 stores that have lost hope or lost property leases within 2-3 years, and opened 2 new department store stores (Lifa New City Store and Lengshuijiang Store).25; as of the end of 2018, the company has 341 stores (290 supermarkets and 51 department stores) in various formats, with a total area of 4.15 million square meters.
In addition, the company has four provincial-level central parks in Hunan, Guangxi, Jiangxi, and Sichuan. It has more than 20 warehouses of various types, such as room temperature, fresh-keeping, freezing, refrigerating, bonded, etc., with a storage area of about 330,000 square meters, including its own storage area of 270,000 square meters.
In 2018, the company newly commissioned Jiangxi cold chain warehouses and Sichuan low temperature warehouses to achieve efficient distribution of cold chain commodities in Jiangxi and Sichuan regions; as of the end of 2018, the company’s vegetable standard parts had reached 98.
6%, the standard parts of fruit have reached 86.
7%, which guarantees the quality of fruits and vegetables.
Operating income in 2018 increased by 6.
65% to 1.84 million yuan, mainly due to the substantial increase in revenue from new stores and other businesses.
By business, ① supermarket business income 108.
4.5 billion, a five-year growth of 5.
85%, accounting for 58 of main income.
94%, of which the comparable shop effect is 1.
320,000 yuan / square meter / year, comparable store revenue and total profit each increased by -1.
06% and 5.
② Department store business income 40.
90,000 yuan, an increase of 2 in ten years.
47%, accounting for 22.
23%, of which comparable shop floor effect1.
160,000 yuan / square meter / year, comparable store revenue and total profit each increased by 0.
5% and 39.
③ Revenue from home appliance business11.
5.9 billion, down 4 each year.
54%, accounting for 6.
④ Wholesale business 1.
78 ‰, a decline of 40 per year.
4%, mainly because the company reduced the wholesale operation of inefficient brands.
⑤ Revenue from logistics and advertising business 1.
880,000 yuan, an increase of 30 in ten years.
56%, mainly due to the new operation of Jiangxi cold chain warehouse and Sichuan low-temperature warehouse in 2018, and increased the speed of strip board transportation and standard parts advancement, resulting in a substantial increase in logistics revenue.
⑥ Other business income (mainly supplier income and rental income) 19.
390,000 yuan, an increase of 42 in ten years.
77%, mainly due to the absorption of the income from the combined Luzhou Yitong Company in November1.
9 trillion, and Luzhou Plaza, Yueyang Plaza, Guigang Plaza, and some department stores that opened at the end of 2017 were sub-leased, resulting in a substantial increase in rental income.
By region, Hunan’s income increased by 3.
09% to 1.17 million yuan, accounting for 63% of operating income.
62%, comparable to the store’s annual efficiency1.
540,000 yuan / square meter, the maximum growth rate of comparable store revenue and profit increased by 1.
32% and 24.
9%; income from other provinces increased by 4.
75% to 47.
5.5 billion, comparable to the store floor zero.
920,000 yuan / square meter, comparable store revenue and total profit increased by -5.
Comprehensive gross profit margin increased by 1.
53 averages, the main gross profit margin increased by 0.
Supermarket gross margin increased by 0.
26 good to 17.
66%, department store gross margin increased by 0.
16 up to 15.
18%; gross profit margin of home appliances 10.
31%, an increase of 1 each year.
52 units; gross profit margin of wholesale business 7.
38%, a decrease of 6 per year.
69 units; gross margin of logistics and advertising 18.
6%, an increase of 3 per year.
66 grades, the main business gross margin increased by 0.
37 up to 16.
Due to the high gross profit margin of other businesses, the final comprehensive gross profit margin (excluding interest income and expenditure) increased by 1.
53 up to 23.
Sales management expense ratio increased by 0.
98 shares per share, financial expenses increased by 93.92 million yuan.
Selling expenses increased by 2.
7.7 billion yuan, the expense ratio increased by 0.
41 points to 18.
04%, mainly due to the 1-2 year incubation period of newly opened stores, the market share during 北京桑拿洗浴保健 the incubation period is not high, the expenditure on sales and other expenses breaks through, and the overall expense ratio is high; the management expenses increase by 1.
26 trillion, the expense ratio increased by 0.
58pct to 2.
28%, mainly due to the company’s management structure adjustment during the reporting period, the centralization of headquarters changed to the provincial management mode, while a large number of stores opened the management scale growth, and the company increased spending on digital, personnel and other aspects; financial costs increased by RMB 93.92 million, The final period expense ratio increases by 1.
46pct to 21.
5. The final attributable net profit increased by 3.
45%, deducting non-net profit fell by 3.
Operating profit increased by 8.
48%, net non-operating income decreased by 18.59 million yuan (mainly due to increased expenditures such as closing stores), and the effective income tax rate decreased by 2.
04 averages, the final attributable net profit increased by 3.
45% to 1.
5.6 billion, deducting non-net profit fell by 3.
27% to 1.
By quarter, 1-4Q net profit attributable to mothers increased by 18 each.
24%. Except for the expected growth rate of revenue, it was mainly affected by the increase in the sales expense ratio.
In addition, the company leveraged strategic investors Tencent and JD.com to continue to promote smart retail.
①Members: By the end of December, there were more than 5 million digital members, of which 63% were new customers and 63 were members sales.
8%; 680,000 daily visits, about 150,000 daily averages; 17 average daily visits.
50,000 times, about 70,000 times daily.
② Digital stores: On April 4, 2018, the company joined hands with Tencent to create the first smart retail-BBK Meixi Lake smart retail flagship store officially opened, focusing on payment, navigation, precision marketing, fast payment and O + O delivery, etc.It is the first smart retail flagship store co-operated by Tencent and retail companies. Using the replicability of the store, it is gradually promoted in the company’s existing stores and newly opened stores.
③ Digital marketing: Double 11 in 2018, BBK Better Buying Mini Program was first listed on the department store information, and launched Yan Yan Academy, Food Inspection Room, Parent-Child Association, Sports Hall, Living House, Science and Technology Bureau, Yiwen Club and other sections for consumption.The authors launched beauty notes, lifestyle food, parent-child activities, etc., using a small program + WeChat public account + community three-dimensional integration, through online discounts spikes, points sweepstakes and other multiple promotions to aggregate scenes and content.
At the same time, in 2018, the company bought better online, multi-point, JD, and Meituan home O2O combined orders57.
480,000 orders, operating income of 30.34 million yuan, better purchase of membership code, scan code purchase, multi-point self-help, WeChat self-service total operating income
The company’s revenue in the first quarter of 19 was 56.
34 trillion increased by 2.
57%, attributable net profit 1.
86 ppm increased by 3.
In the first quarter of 2019, total operating income was 56.
34 ppm, a 10-year increase2.
57%, gross margin increased by 1 short-term.
52 good to 23.
86%, we estimate mainly from operating efficiency.
The rate of management and marketing expenses increased by 1.
18 up to 17.
73%, mainly due to the increase in sales expense ratio by 1.
22 up to 16.
07%, financial expenses increased 28.80 million yuan to 63.23 million yuan, the final period expense ratio increased by 1.
36 singles to 18.
The final attributable net profit increases by 3 each year.
47% to 1.
8.6 billion, deducting non-net profit increased by 8.
52% to 1.
Reporting that first-class companies actively promote smart retail, ① home + smart cashier: 1Q19 companies better buy, JD.com, multi-point, Meituan home O + O total orders 28.
630,000 orders, operating income of 1721.
770,000 yuan, better purchase of membership code, scan code purchase, multi-point self-help, WeChat self-help total operating income3.
② Digital members: As of the end of March, the company’s membership exceeded 17.7 million, of which 7 million + were digital members, and 199 new digital members were added in the first quarter of 1919.
60,000, including 157 new guest members.
470,000, new members accounted for 78.
90%, conversion of traditional members to digital members accounts for 21.
10%, new customer sales accounted for 8.
Judgement of the company.
① Excellent private mechanism: The company deeply cultivates Hunan and Guangxi regions to become a comprehensive commercial leader, relying on offline brands, channels, suppliers, consumers and other high-quality resources, and actively promotes omni-channel transformation, complete system, clear strategy, strong execution and strongFlexible and effective private mechanism guarantee; ② Extension and steady expansion: The company acquired Macy’s in 2017, and opened 38 new supermarkets and 2 department stores in 2018. Taking into account the province’s internal and external layout, we expect a steady expansion in 2019;Energy efficiency: On the date of Tencent, JD.com each holds 6% and 5% shares, practically promotes smart retail, strives to take advantage of Tencent ‘s flow and technology advantages, JD.com ‘s warehouse distribution and supply chain advantages, and improves the company’s operating efficiency.
Update profit forecast.
We expect net profit attributable to mothers for each of 2019-2021.
7.4 billion, 1.
9.5 billion, 2.
28 ppm, an increase of 11 each year.
Taking into account the company’s pre-operational adjustments, the speed of the exhibition in 2019, the partnership system, and the digital transformation are all accelerating, and with reference to the same industry transformation, 0 is given in 2019.
5 times PS, corresponding to a reasonable value interval 9.
5 yuan, given the “primary market” investment rating.
Risk and uncertainty.
Uncertainty in the progress and effectiveness of e-commerce business; the incubation period of new stores is prolonged; uncertainty in cross-region expansion.