Rainbow Group (002419) 2018 Annual Report Comments: Steady Growth in Same Store Gross Profit, Profitability Continued to Improve

Home / Rainbow Group (002419) 2018 Annual Report Comments: Steady Growth in Same Store Gross Profit, Profitability Continued to Improve

Rainbow Group (002419) 2018 Annual Report Comments: Steady Growth in Same Store Gross Profit, Profitability Continued to Improve

The same-store gross profit grew steadily, and multiple factors caused Q4 to be lower than expected in 2018. The company’s operating income was 191.

380,000 yuan, an annual increase of 3.

25%; net profit attributable to mother is 9.

40,000 yuan, an increase of 25 in ten years.

92%; net profit after deduction 7

92 ppm, an increase of 24 in ten years.

76%, earnings per share are 0.

7535 yuan.

Excluding 佛山桑拿网 the impact of the real estate business, the company’s operating income in 2018 increased by 4 per year.

45%, profits increase by 30 per year.

58%; Operating income for the fourth quarter of 2018 decreased by zero.

64%, and profits grow 24% annually.

In 2018, the company’s average same store revenue growth rate was 1.

55%, gross profit growth rate reached 6.

27%, profit growth rate was 17.

10%.

In terms of exhibition stores, 6 new stores were opened in 2018, of which 4 were directly operated by shopping malls and 1 was managed and exported; 1 was directly operated by department stores.

Department stores and shopping malls took over the two franchised store projects in Dingnan and Jiujiang, respectively.

Independent supermarkets opened 6 direct stores and joined 2

We expect the company to maintain a positive store 成都桑拿网 display trend in 2019.

Profitability continued to improve in 2018, and the company’s comprehensive gross profit margin was 27.

25%, increase by 1 every year.

50pct, of which retail business gross margin is 26.

52%, increase by 1 every year.

27pct, benefiting from the experiential format and some stores turned losses.

Period expenses 21.

10%, rising by 0 every year.

66pct, mainly due to the speedup of exhibition stores and increase in staff costs.

The company’s net interest rate continued to rise to zero.

85 points to 4.

73%.

The three major strategies of digitization, experience, and supply chain, and the employee shareholding plan demonstrate confidence that the company’s efforts to promote the three strategies of digitization, experience, and supply chain have a significant effect on improving the company’s profitability.

On January 15, the company announced that it plans to launch the second phase of the employee stock ownership plan, demonstrating the company’s leaders’ confidence in future development.

Risks suggest that store expansion is less than expected; same-store growth is worse than expected.

The performance is in line with expectations, maintaining high-speed exhibitions and maintaining the “buy” rating. The department store / shopping mall format of the experiential positioning is in line with the current mainstream consumer trend. “One store, one strategy” + “Family-oriented, close to life”, Experiential, supply chain three strategies.

We expect the company to maintain a faster store opening rate in 2019.

The second phase of employee shareholding plan was launched in January 2019, demonstrating the leadership’s confidence in future development. It is estimated that the net profit for 2019/2020/2021 will be 10 respectively.

78/12.91/14.

690,000 yuan, maintain “Buy” rating.

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