Texhong (002419) 2019Q1 Review: Revenue growth has improved, comparable shopping mall profits continue to rise

Rainbow Group announced the results of 2019Q1: the company achieved revenue 51 in 19Q1.

800 million, previously reduced by 0.

8%, realizing attributable net profit 3.

14 ppm, a five-year increase of 5.


In terms of business, the retail business achieved revenue of 47.

800 million, previously reduced by 2.

5%, real estate business realized income 2.

50,000 yuan, an increase of 30 in ten years.


Gross profit margin continued to increase.

The company’s comprehensive gross profit margin increased by 1 in 19Q1.

7 pct to 27.

7%, of which the retail business benefited from the upgrading of the format, and the gross profit margin increased by 0.

98 pct to 26.

5%, the gross profit of retail business increases by 1 every year.


Signed multiple reserve projects.

In 19Q1, there were no major stores opened. Shenzhen Meilin Tianhong joined the company and ended up being a direct store. Five convenience stores opened and seven closed. Q1 signed two community living center projects and five independent supermarket projects.

The performance of comparable stores in department stores declined, and the profits of comparable stores in shopping malls and supermarkets increased significantly.

The annual growth rate of gross profit and profit maximization of the department store format are -2.

6%, -5.

7%, we estimate is affected by the high base of 18Q1; comparable store performance in shopping malls continued to improve, gross profit and profit maximization increased by 23 respectively.

4%, 78.

1%, we estimate that the shopping mall format is more popular, and the shopping malls that opened in 2016 and 2017 have gradually entered the mature period; the gross profit and total profit of supermarkets have increased by 10 respectively.

8%, 29.


The average monthly gross profit margin of department stores, shopping malls and supermarkets increased by an additional month.

Net interest rate remained stable, and operating cash flow improved due to the impact of the Chinese New Year.

The company’s 19Q1 expense ratio increased by 1.

5 pct, but the gross profit margin increased by 1.

7 pct, so the attributable net margin increased by 0.

3 pct, profit growth rate is higher than income growth rate; cash flow from operating activities is -4.

3 trillion, -0 in the same period last year.

100 million US dollars, due to the wrong period of payment 重庆耍耍网settlement during the Spring Festival peak period in the same period last year.

Investment ratings and estimatesWe expect 2019?
In 2021, the company will realize revenue of 211.228 / 24.7 billion and a net profit of 10%.

3 ppm, PE is estimated to be 16/14/13 times, maintaining the “recommended” level.

Risks prompt continued sluggish consumer demand, new store opening results less than expected