Wangfujing(SH:600859) Soochow Securities·2025-11-24 08:04Investment Rating - The report maintains an "Accumulate" rating for Wangfujing [1] Core Views - Q3 revenue decline has narrowed, and the company is expected to benefit from the tax-free policy by 2025 [8] - The company has actively laid out its tax-free business, which is anticipated to gain from the release of policy dividends [8] - The financial performance for Q3 shows a revenue of 2.35 billion yuan, down 4.7% year-on-year, and a net profit attributable to shareholders of 40 million yuan, down 68.2% year-on-year [8] Financial Forecasts - Total revenue projections for Wangfujing are as follows: - 2023A: 12,224 million yuan - 2024A: 11,372 million yuan - 2025E: 10,973 million yuan - 2026E: 11,557 million yuan - 2027E: 12,180 million yuan [1] - Net profit attributable to shareholders is forecasted as: - 2023A: 709.38 million yuan - 2024A: 268.58 million yuan - 2025E: 180.20 million yuan - 2026E: 428.22 million yuan - 2027E: 602.98 million yuan [1] - The report indicates a significant decrease in net profit margins, with a forecasted net profit margin of 1.8% for Q3, down 3.6 percentage points year-on-year [8] Market Data - The closing price of Wangfujing is 14.10 yuan, with a market capitalization of approximately 15.85 billion yuan [6] - The price-to-book ratio is reported at 0.81, indicating the stock is trading below its book value [6] Strategic Developments - The company has received approval for its tax-free operations and has launched several tax-free projects, including the Wangfujing International Tax-Free Port [8] - Recent policy changes have led to a 28.52% year-on-year increase in tax-free sales, indicating a positive trend in consumer spending [8]