Jiajiayue (603708): 1H19 income net profit increased by 17%

Jiajiayue (603708): 1H19 income net profit increased by 17%

The company released the semi-annual report for 2019 on August 26.

In the first half of 2019, revenue was 72.

65 ppm, an increase of 16 in ten years.

68%; total profit 2.

930,000 yuan, an increase of 20 in ten years.

80%; net profit attributable to mother 2.

26 ppm, an increase of 16 in ten years.

85%, deducting non-net profit 2.

14 ppm, an increase of 15 in ten years.


EPS after deduction is 0.

35 yuan; return on equity 8.


Total operating cash flow during the reporting period was 0.

43 yuan.

Brief comments and investment 杭州桑拿网 recommendations.

The company’s revenue for the first half of the year was 72.

6.5 billion increased by 16.

68%, net profit attributable to mother 2.

2.6 billion increased by 16.

85% of which, by region, Qingdao WIKI has a net profit of nearly 12 million yuan (51% of its shares) and Hebei Jiayue’s income1.

7.7 billion, with a budget of 16.3 million yuan (67% of the shares); we estimate that after excluding Weiker and Hebei, the company ‘s original business in Shandong increased 13% in the first half of the year and net profit increased 17%.

Among them, we estimate the same store 2% + in the first quarter, and 4 in the first half.

4%, corresponding to the obvious increase in the same store in the second quarter; profit growth in the first half increased by 20.

8%, of which the first and second quarters 北京夜生活网 each increased 16% and 29%; non-net profit deducted in the first half increased by 15.

8%, of which the first and second quarters each increased by 14.

1%, 18.



In the first half of the year, 40 new stores were opened, including 23 and 17 in the first and second quarters.

In the first half of the year, 40 stores were opened, of which 11 were in Zhangjiakou, 3 were newly opened, 6 were opened in Weihai, 10 were opened in Yantai, 10 were opened in Qingdao, Jinan and other places; 14 were closed in the first half of the year.

As of June 2019, the number of stores is 763 (five stores include both own and lease repeat statistics, otherwise 758), of which 640 in Jiaodong area, accounting for 84%, and 123 in non-Jiaodong area, accounting for 16%;There are 126 hypermarkets, 551 general supermarkets, 59 specialty stores, 14 department stores, and 13 convenience stores; a total area of 1.98 million square meters and 26 own properties.

790,000 square meters accounted for 13.



Revenue in the first half increased by 16.

68%, of which same-store growth was 4.

42%.Company 1H19 revenue 72.

65 ppm, an increase of 16 in ten years.

68%, of which 1Q and 2Q growth rates are basically the same; Qingdao Weike started consolidation in March 2018, 1H19 net profit of 11.89 million yuan (8.38 million yuan per month from March to June 2018), Hebei Jiajiayue consolidation in early 2019, Income in the first half of the year 1.

77 trillion, expected 1630 trillion.

We estimate that excluding Wei Ke and Hebei Jiajiayue, the company’s original business revenue in Shandong increased by 13%, of which the second quarter benefited from the same-store improvement, the growth rate accelerated quarter-on-quarter; same-store growth in the first half.

42%, of which hypermarkets, general supermarkets, and specialty stores each increased 4.

74%, 4.

27%, 6.

26%, convenience stores, department stores same store fell 3.


90%, 2.


3. Comprehensive gross profit margin increased by 0 in the first half of the year.

07 averages, the main gross profit margin increased by 0.

09 averages.

Comprehensive gross profit margin for the first half of the year 21.

55%, increasing by 0 every year.

07pct, where 1Q increases by 0.

24pct, 2Q reduced by 0.

12pct, we estimate that the gross profit margin in the second quarter fell slightly, which may be related to the company’s hosting of 7 stores of China Resources and increasing the wholesale business from April 1.

Commercial gross margin increased by 0 in the first half of the year.

07pct to 17.

29%, industrial and other gross profit margins increased by 4.

15pct to 16.

98%, the main business gross margin increased by 0.

09pct to 17.


Gross margin of other businesses decreased by 1.

63pct to 81.

45%, the final comprehensive gross profit margin increased by 0.

07pct to 21.


By category, fresh income increased by 17.

70% to 30.

32 ppm, gross margin of 15.

47%, basically maintained every year; food washing income increased.

25% to 31.

44 trillion, gross margin increased by 0.

19 points to 18.
36%; department store revenue rose 23.
07% to 5.

80 ppm, gross margin decreased by 0.

20pct to 21.


Final business revenue increased by 16.

50% to 67.

56 ppm, gross margin increased by 0.

07 single to 17.


By region, the Jiaodong region’s revenue increased by 12.

29% to 57.

7 billion, accounting for 85 of main revenue.

06%, gross profit margin 17.

29%, basically basically the same, we estimate that it is mainly related to the increase in wholesale revenue of China Resources Trust; the rest of Shandong ‘s revenue increased by 49.

23% to 9.

8.6 billion, accounting for 14 of main revenue.

54%, gross margin increased by 0.

61pct to 17.

31%, exceeding Jiaodong 0.

02pct, which reflects the efficiency improvement of the sub-new region.


The expense ratio increased by 0 during the first half of the year.

02pct, in which the sales expense rate is reduced by 0.

29 points.

The sales expense ratio is reduced by 0 every year.

13 points to 15.

25%, mainly from the reduction of energy costs and repair costs; the reduction of management costs decreased by zero.

16 points to 2.

09%, mainly from the reduction of employee compensation and loss of goods; financial income decreased by 18.33 million to 5.48 million yuan, mainly due to the impact of deposit income and handling fees, the final overall period expense ratio increased by 0.

02pct to 17.

26%, with 1Q increasing by 0.

39pct, 2Q reduced by 0.

38 points.


The increase in effective tax rate and expense ratio offset the slight improvement in gross profit margin, and the increase in net profit attributable to mothers in the first half of the year.


Non-operating income and expenditure increase by 3.13 million to 1 million yuan each year, and profits increase by 20.

80% to 2.

9.3 billion.

In addition, the effective tax rate is increased by one.97pct to 24.

64%, of which the first quarter and the second quarter each increased by 0.

59, 3.

88 points, the net profit attributable to the mother increased by 16.

85% to 2.

26 ppm, of which the first quarter and the second quarter each increased by 16.

06%, 18.


In 1H19, non-net profit increased by 15.

75% to 2.

1.4 billion, of which 1Q and 2Q each increased by 14.

14%, 18.


Among them, the decline in the 2Q expense ratio reduced the impact of the growth rate of gross profit margin, and the profit increased by 29.

04%, a growth rate of 13pct compared to 1Q; but the minority shareholders’ profit and loss decreased by 2.04 million yuan, resulting in a 2Q increase in net profit attributable to the mother.



Improving digital capabilities and speeding up the supply chain layout (1) According to the customer base and consumption needs of business districts, fine-grained classification and precise positioning of stores of various business types.

Renovate and upgrade some stores, optimize the composition of store products, and enhance service functions and customer experience.

(2) Start the SAP system project to improve digital capabilities.

The companies in the report focused on the introduction and upgrading of information systems, and started the SAP system project to enhance the digital capabilities of the company. Through the establishment of teams and cooperation with third parties, the online and offline integration and integration project was launched to provide home-to-home services and store-to-store services.
(3) Speed up the optimization of the logistics system and the layout of the fresh processing base, and strengthen the supply chain capacity.

① The main project of the normal temperature logistics distribution center and office building of Yantai Lingang Comprehensive Logistics Park is about to be completed, and the main project of the fresh processing center is under construction.

② Jinan Laiwu Raw and Fresh Processing Center is expected to complete all projects by the end of 2019 and introduce them in stages; ③ The construction area of the first phase of Zhangjiakou Comprehensive Industrial Park is about 40,000 square meters, and the main construction project is about to be completed.Weike Logistics Center has been upgraded.

Maintain judgment of the company.

① Leading Shandong supermarket, stable growth of same store: The company’s core advantages are regional dense layout, complementary multi-format businesses, integrated logistics, supply chain construction, fresh food operation, etc., to build alternative competition barriers; 1H19 same store value added4.

42%, we expect to maintain the initial expectation in 2019; ② accelerated expansion inside and outside the province: 1H19 new 40 stores, plans to change to 100 new in 2019, Qingdao Weike has been acquired in 2018, Zhangjiakou Fuyuexiang, hosting China Resources in 2019Stores in 10,000 provinces; ③Executive management shareholding + partner system full of incentives: Middle and high-level employees generally hold shares in listed companies vertically, and have introduced a partner system in 89 stores by the end of 2018; ④ Actively deploy new retail: investmentNew retail innovation fund (targeted at 500 million yuan), launched smart micro supermarkets and unmanned stores in 2018.

Update profit forecast.

It is expected that the net profit attributable to mothers will be 4 each in 2019-2021.

7.3 billion, 5.

4.3 billion, 6.

34 ppm, an increase of 10 in ten years.

0%, 14.

9%, 16.

7%; the current market value of 14.7 billion corresponds to PE 31 in 2019-2021.

1x, 27.

0 times, 23.

2 times, corresponding to 0 each for PS.

98 times, 0.

82 times, 0.68 times.

Give 1 for 2019.


2 times PS, corresponding to a reasonable market value range of 149 trillion to 179 trillion, a reasonable value range of 24.


4 yuan; this range corresponds to the company’s PE in 2019 is 31.


9 times, compared with comparable estimates from Yonghui Supermarket (39x) and Backgammon (32x), which are reasonable, and give investment ratings of “corresponding big cities”.

risk warning.

Store opening speed is slower than expected; new store cultivation period is prolonged; e-commerce channel is diverted; regional competition is intensified.