Jiajiayue (603708): Extension expansion continues to promote Fu Yuexiang’s consolidated income contribution

Jiajiayue (603708): Extension expansion continues to promote Fu Yuexiang’s consolidated income contribution

The store maintained a rapid expansion trend. Fuyuexiang Supermarket consolidated revenue contribution and the company released a 1Q19 quarterly report to achieve revenue of 38.

50,000 yuan, an increase of 16 in ten years.

68%; net profit attributable to mother 1.

410,000 yuan, an increase of 16 in ten years.

06%.

Among them, the main retail business income increased by 14 each year.

15%, it is estimated that the original Shandong area and Zhangjiakou Fuyuexiang supermarket respectively contributed about 11.

7% and 3.

5% growth rate.

In the first quarter of 19, the company opened 20 stores (12 new, 11 Zhangjiakou consolidated statements, closed 3). The total number of stores at the end of the period reached 752, a continuous growth of 9

3%, still maintains a rapid expansion trend.

In terms of different regions, the Jiaodong area realized its main operating 西安耍耍网 income29.

6 trillion, an increase of 9 in ten years.

5%, accounting for about 85.

1%, a decrease of about 3 from 2018.

2pp; other regions contribute main income 5.

2 ‰, an increase of 50 in ten years.

4%.

In terms of different business types, hypermarkets and general supermarkets still contributed the main revenue, with a total revenue share of 96.

7%, the two revenues in the first quarter of 19 increased by 22.

8% and 6.

5%.

The gross profit margin increased steadily, and the decrease in deposit income affected financial expenses. In 1Q19, the company’s comprehensive gross profit margin was 21.

78%, an increase of 0 a year.

24pp; of which the gross profit margin of the main retail business is 17.

89%, a year up 0.

twenty one%.

Company sales management expenses expense 16.

89%, a decrease of 0 苏州桑拿网 every year.

12pp; financial expenses 0.

09%, a year to raise 0.

51pp.

Taken together, the net profit margin in 1Q19 was 3.

63%, a slight decrease of 0 in one year.

05pp.

Profit forecast and investment advice The company focuses on community fresh supermarkets, deepens the supply chain, effectively resists the impingement of the Royal Family, and maintains fast store openings. It is expected that about 100 new stores will be opened in 19 years.

Qingdao Wiki turned losses into profits, reflecting the company’s supply chain management output capabilities, and is optimistic about the company’s integration and transformation of Zhangjiakou Fuyuexiang Supermarket and China Resources Supermarket.

We estimate that the company’s net profit attributable to its mother in 19-21 will be 4 respectively.8.3 billion, 5.

9.6 billion, 7.

1.8 billion yuan, EPS is 1.

03, 1.

27, 1.

53 yuan, maintaining a fair value of 27 yuan per share, the same as the 19X 26X PE, maintaining the “overweight” rating.

Risks suggest that the effect of the new acquisition integration is not up to expectations; national supermarket leaders enter the Shandong market; Internet giants intervene to intensify industry competition; CPI exceeds expectations.