CBEST(SH:600729) Guoxin Securities·2025-11-06 06:18Investment Rating - The investment rating for Chongqing Department Store (600729.SH) is "Outperform the Market" [5][24]. Core Views - The retail business is under short-term pressure due to adjustment rhythms, but investment income from immediate consumer finance is steadily growing. For the first three quarters, the company achieved revenue of 11.63 billion yuan, a year-on-year decrease of 10.56%, while net profit attributable to shareholders was 999 million yuan, an increase of 7.38% [1][3]. - The company has implemented its first interim dividend since listing, distributing a cash dividend of 0.1589 yuan per share, totaling approximately 70 million yuan, which accounts for 7.74% of the net profit attributable to shareholders for the first half of 2025 [1][3]. Summary by Sections Revenue and Profitability - In Q3, the company reduced its number of stores by 7, with 5 supermarkets and 2 automotive trade stores closed. Revenue in Chongqing for various sectors showed declines: department stores -8.29%, supermarkets -3.83%, electrical appliances -10.00%, automotive trade -23.62%, and others -9.07% [2]. - The gross margin and net margin for Q3 2025 were 26.50% and 6.15%, respectively, reflecting increases of 2.13 and 0.99 percentage points year-on-year. The increase in gross margin is driven by adjustments in supermarkets and electrical appliances [2]. Financial Forecasts - The company has adjusted its net profit forecasts for 2025-2027 to 1.39 billion, 1.467 billion, and 1.525 billion yuan, respectively, with corresponding P/E ratios of 9, 8, and 8 times [3][4]. - Revenue projections for 2023 to 2027 are as follows: 18.985 billion yuan in 2023, 17.139 billion yuan in 2024, 15.391 billion yuan in 2025, 15.733 billion yuan in 2026, and 15.962 billion yuan in 2027, indicating a decline in the initial years followed by slight growth [4][22].