Wangfujing(SH:600859)2024-11-15 07:32Investment Rating - The report maintains an "OUTPERFORM" rating for Wangfujing Group with a target price of RMB 18.76 [1][20]. Core Views - The company reported a revenue of RMB 2.464 billion for Q3 2024, a decrease of 14.61% year-on-year, while the net profit attributable to shareholders increased by 2.53% to RMB 134 million. However, the recurring net profit decreased by 70.54% to RMB 39 million [1][13][17]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a total revenue of RMB 8.5 billion, down 8.27% year-on-year, with a gross profit margin of 40.17%, a decline of 0.98 percentage points [2][14]. - The Q3 2024 gross profit margin was 38.29%, down 1.09 percentage points [2][14]. - The company’s Q3 2024 net profit was RMB 134 million, up 2.53% year-on-year, while the recurring net profit fell by 70.54% [3][17]. Revenue Breakdown - By business format in 1-3Q24: - Department store revenue: RMB 3.242 billion, down 15.45% - Shopping center revenue: RMB 2.254 billion, down 1.58% - Outlet revenue: RMB 1.65 billion, up 4.37% - Specialty store revenue: RMB 1.078 billion, down 4.97% - Duty-free revenue: RMB 204 million, up 68.62% [2][15]. Regional Performance - By region in 1-3Q24: - South China: RMB 312 million, up 13.64% - Northeast: RMB 365 million, up 7.91% - East China: RMB 455 million, down 2.93% - Southwest: RMB 1.753 billion, down 14.75% - North, Central, and Northwest China: RMB 4.578 billion, RMB 633 million, and RMB 885 million, down 12.96%, 11.02%, and 10.51% respectively [2][16]. Expense Ratios - The period expense ratio for Q3 2024 was 31.57%, an increase of 2.63 percentage points year-on-year. The sales expense ratio rose to 16.35%, and the management expense ratio increased to 13.02% [3][17]. Future Projections - Revenue projections for 2024-2026 are RMB 11.1 billion, RMB 12.2 billion, and RMB 13.1 billion, with expected year-on-year growth rates of -9.3%, 9.8%, and 7.6% respectively. Net profit projections are RMB 540 million, RMB 710 million, and RMB 840 million, with year-on-year growth rates of -24.1%, 31.8%, and 18.8% [6][19].