CBEST(600729) 申万宏源·2024-11-04 09:18Investment Rating - The report maintains a "Buy" rating for Chongqing Department Store (600729) [6][6][6] Core Views - The company reported Q3 2024 results that met expectations, with revenue of 13.004 billion yuan for the first three quarters, a year-on-year decline of 12%, primarily due to high temperatures and power restrictions in Chongqing, along with weak consumer sentiment [6][6] - The company is focusing on improving product offerings and driving growth in the electrical appliance sector through trade-in programs, which have led to a significant increase in customer traffic and sales [6][6] - The report highlights a decrease in gross margin in Q3, but an increase in investment income has contributed to profit improvement [6][6] - The company is actively promoting various sales events and has seen strong performance in its fresh discount stores [6][6] Summary by Sections Market Data - Closing price: 22.02 yuan - One-year high/low: 33.00/16.91 yuan - Price-to-book ratio: 1.4 - Dividend yield: 6.16% - Circulating A-share market value: 4,149 million yuan [3] Financial Summary - Total revenue for 2023: 18,985 million yuan - Expected revenue for 2024: 17,044 million yuan, with a year-on-year decline of 10.2% - Net profit for 2023: 1,315 million yuan, expected to decline to 1,246 million yuan in 2024 [7][9] - Gross margin for 2024: 26.0% [7] Operational Highlights - The company has a diversified business model with 50 department stores, 149 supermarkets, 42 electrical appliance stores, and 32 automotive trade outlets as of Q3 2024 [6] - The company has launched significant promotional activities, achieving over 130 million yuan in sales during the National Day holiday [6][6] - The fresh discount store model has shown promising results, with sales increasing significantly during the holiday period [6][6]