Wangfujing(SH:600859) Minsheng Securities·2024-09-01 07:30Investment Rating - The report maintains a "Recommended" rating for Wangfujing (600859.SH) [1][2] Core Views - Wangfujing's performance in the first half of 2024 was under pressure due to insufficient consumer confidence and lower-than-expected consumption growth, leading to a year-on-year decline in same-store sales by 7.33% [1] - The company's revenue for 1H24 was CNY 6.035 billion, a year-on-year increase of 5.4%, while the net profit attributable to shareholders decreased by 43.36% to CNY 293 million [1] - The report highlights the resilience of the shopping center and outlet businesses, with duty-free sales experiencing rapid growth from a low base, increasing by 121.17% year-on-year [1] Summary by Sections Financial Performance - In 1H24, the company achieved a gross margin of 40.94%, down by 1.01 percentage points year-on-year, primarily due to declining revenue [1] - The net profit margin for 1H24 was 4.86%, a decrease of 3.26 percentage points year-on-year [1] - The company reported a revenue of CNY 2.727 billion in Q2 2024, a year-on-year decline of 9.49%, with a net profit of CNY 91 million, down 68.65% year-on-year [1] Business Segments - Revenue from various business segments in 1H24 was as follows: department stores (CNY 2.319 billion, -13.65%), shopping centers (CNY 1.542 billion, +0.01%), outlets (CNY 1.140 billion, +0.20%), specialty stores (CNY 758 million, -3.09%), and duty-free business (CNY 172 million, +121.17%) [1] - The shopping center segment's revenue contribution increased to 23.68% of total revenue, while the duty-free segment, still in its early stages, accounted for 2.64% of total revenue [1] Regional Performance - The majority of the company's revenue comes from the North China region, which accounted for 50.68% of total revenue in 1H24 [1] - Revenue growth rates varied by region, with South China showing a significant increase of 32.03% year-on-year, while other regions like Southwest and Northwest experienced declines [1] Future Outlook - The report projects net profits for Wangfujing to be CNY 650 million, CNY 935 million, and CNY 1.239 billion for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 22X, 15X, and 12X [2][6]