XHCG(SH:600785) EBSCN·2024-04-26 02:02Investment Rating - The report maintains a "Buy" rating for the company [2][5] Core Views - The company reported a revenue of 1.88 billion yuan in Q1 2024, representing a year-on-year growth of 2.32%, while the net profit attributable to the parent company decreased by 2.33% to 82 million yuan [23][24] - The company opened 7 new stores in Q1 2024, with a total of 351 stores by the end of the quarter, including 250 supermarkets, 12 department stores, and 89 appliance stores [1][24] - The company’s gross margin decreased by 2.48 percentage points to 26.67% in Q1 2024, while the expense ratio decreased by 2.13 percentage points to 20.97% [4][24] Summary by Sections Financial Performance - Q1 2024 revenue was 1.88 billion yuan, a 2.32% increase year-on-year, while net profit was 82 million yuan, down 2.33% [23][24] - The comprehensive gross margin for Q1 2024 was 26.67%, down 2.48 percentage points from the previous year [4][24] - The expense ratio for Q1 2024 was 20.97%, a decrease of 2.13 percentage points year-on-year [1][4] Store Expansion - The company opened 7 new stores in Q1 2024, with 5 located within Ningxia and 2 outside the region [1][24] - As of the end of Q1 2024, the company operated a total of 351 stores, including 250 supermarkets, 12 department stores, and 89 appliance stores [1][24] Performance by Segment - The department and appliance segments showed good revenue growth year-on-year, although their gross margins declined [1][24] - The supermarket segment experienced a slight revenue decline but saw an improvement in gross margin [1][24] - Performance in the Ningxia region was better than in areas outside of Ningxia [1][24]