SBGCL(SH:600827) Guoxin Securities·2024-09-03 01:30Investment Rating - The investment rating for the company is "Outperform the Market" [1][3][12]. Core Views - The company's performance has been under pressure due to the consumption environment, with a revenue of 15.173 billion and a year-on-year decline of 7.17% in the first half of the year. The net profit attributable to shareholders was 274 million, down 17.58% year-on-year [1][5]. - The successful listing of public REITs has helped in value release, with a net fundraising of 2.332 billion, representing a significant appreciation of 429.05% compared to the asset's book value [1][11]. - The company is transitioning from a traditional heavy asset operation model to a light asset development model, which is expected to enhance operational potential [1][12]. Financial Performance Summary - Revenue and Profitability: In H1 2024, the company achieved a revenue of 15.173 billion, with a net profit of 274 million, and a non-recurring net profit of 201 million, reflecting declines of 7.17%, 17.58%, and 29.22% year-on-year respectively [1][5]. - Segment Performance: - Department stores and shopping centers faced declines in revenue of 8.43% and 5.14% respectively, while the outlet segment remained stable with flat revenue [1][5]. - The supermarket segment, particularly the Lianhua Supermarket, reported a revenue of 11.869 billion, down 8.07%, but with a reduced loss compared to the previous year [1][5]. - Margins: The gross margin decreased across all segments, with the overall gross margin for Q2 2024 at 26.82%, down 1.84 percentage points year-on-year [1][7]. Future Outlook - The company has adjusted its net profit forecasts for 2024 to 1.579 billion, while lowering projections for 2025 and 2026 to 713 million and 847 million respectively, reflecting ongoing challenges in the retail sector [1][12][13]. - The successful issuance of public REITs is expected to directly enhance current profits and activate operational potential through new funding [1][12].