SBGCL(SH:600827) Guoxin Securities·2024-04-30 07:00Investment Rating - The report maintains an "Accumulate" rating for the company [23][24]. Core Views - The company's Q1 performance was under pressure due to industry conditions, with a year-on-year revenue decline of 6.99% to 8.829 billion yuan and a net profit decrease of 7.73% to 193 million yuan. However, the core outlet business remains robust [23][26]. - The report highlights that the overall retail environment, particularly in the department store sector, has been challenging, with a 2.4% decline in retail sales for department stores in Q1. Despite this, the company's shopping centers and outlet segments outperformed the industry average [23][26]. - The company is expected to continue expanding its outlet business and upgrading its existing retail formats in response to changing consumer trends, while also actively pursuing asset securitization to enhance operational potential [23][26]. Financial Performance Summary - The company achieved a revenue of 8.829 billion yuan in Q1 2024, down 6.99% year-on-year, with a net profit of 193 million yuan, a decrease of 7.73% [23][26]. - The department store segment generated revenue of 365 million yuan, down 10.70% year-on-year, while the outlet segment saw a revenue increase of 2.02% to 380 million yuan [7][23]. - The gross margin for the company in Q1 was 24.63%, a decrease of 0.40 percentage points year-on-year, primarily due to lower margins in the department store and supermarket segments [27][23]. Operational Metrics - Inventory turnover days decreased by 3 days to 39 days, while accounts receivable turnover days increased by 2 days to 8 days, indicating stable operational efficiency [11][23]. - The net operating cash flow was 875 million yuan, reflecting a significant year-on-year decline of 70.09%, largely due to the previous year's recovery of restricted cash by a subsidiary [11][23]. Future Outlook - The company forecasts net profits of 724 million yuan, 833 million yuan, and 913 million yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 22x, 19x, and 17x [23][26].