Group 1 - The city is implementing a more proactive fiscal policy to stimulate consumption and promote high-quality development, focusing on expanding domestic demand [1] - By 2025, the city plans to expand its consumption upgrade initiatives to include mobile and 3C digital products, in addition to existing categories like automobiles and home appliances [1] - In the first half of the year, the city secured 8.81 billion yuan in special long-term bonds and provincial matching funds, with 7.25 billion yuan already disbursed in subsidies, leading to significant increases in sales across various sectors [1] Group 2 - A budget of 46.6 million yuan has been allocated for the "Car Purchase Hongcheng" and "Shopping Hongcheng" initiatives, resulting in a notable increase in foot traffic in key commercial areas [2] - An additional 13 million yuan has been set aside to support local dining events, enhancing the visibility of local restaurant brands [2] - The city is fostering the "Four First Economy" by attracting 50 new stores and developing 30 "quarter-hour convenient living circles," with a focus on integrating urban and rural commerce [2]

Investment Rating - The report maintains a "Buy" rating for Chongqing Department Store (600729) [6] Core Views - The company reported Q1 2025 results that met expectations, with a revenue of 4.276 billion yuan, down 11.85% year-on-year, and a net profit of 475 million yuan, up 9.23% year-on-year [6] - The company is benefiting from the "old-for-new" policy, which has driven growth in the appliance sector, with appliance sales increasing by 76.8% year-on-year during the 3.15 shopping festival [6] - The company is actively upgrading its business formats, with significant improvements in gross margin and net profit margin in Q1 2025 [6] Financial Data and Profit Forecast - Total revenue for 2025 is estimated at 18.075 billion yuan, with a year-on-year growth rate of 5.5% [5] - The net profit attributable to the parent company is projected to be 1.406 billion yuan in 2025, reflecting a year-on-year growth of 7.0% [5] - The earnings per share (EPS) for 2025 is expected to be 3.19 yuan, with a price-to-earnings (PE) ratio of 10 [5] Business Operations - As of Q1 2025, the company operates 50 department stores, 149 supermarkets, 42 appliance stores, and 34 automotive trade stores, with a total store area of 2.1783 million square meters [6] - The company is focusing on transforming its supermarket format to enhance customer experience, with plans to upgrade 36 stores in 2025 [6] - The automotive trade segment has seen over 60% of its stores adopting a multi-product approach, with a 59% year-on-year increase in new energy vehicle sales in early 2025 [6]

Core Insights - The government work report emphasizes the implementation of special actions to boost consumption, particularly focusing on the development of international consumption center cities [1] - Chongqing is identified as one of the five cities leading the initiative to cultivate international consumption centers, presenting new strategic opportunities [1] - Chongqing Department Store (600729) is actively exploring innovative business models to enhance regional consumption, leveraging its position as a retail leader in the southwest [1] Group 1: International Consumption Center Development - The report outlines measures to support the development of international consumption centers in cities like Shanghai, Beijing, Guangzhou, Tianjin, and Chongqing [1] - Chongqing aims to become a hub for international consumption resources, innovation, and distinctive shopping experiences [1] Group 2: "Four Firsts" Economic Model - Chongqing Department Store launched the first COLMO brand store featuring full-home smart technology, setting a benchmark for the "Four Firsts" economic model [2] - The store will host technology experience weeks and expert lectures to promote the concept of "AI technology empowering quality life" [6] Group 3: Retail Innovations and Brand Development - Chongqing Department Store is accelerating the introduction of international brand flagship stores and new product launches, with plans to open several new stores and host numerous brand debut events this year [6][9] - The company has successfully launched its own brands, including "Baoyuantong" for gold and "Mumuyi" for women's clothing, achieving nearly 9 million yuan in sales [8] Group 4: Consumer Upgrade Initiatives - Chongqing is implementing policies to support the replacement of old appliances and vehicles, with a focus on expanding subsidies for consumer goods [9] - The sales of old-for-new appliances are projected to reach 1.22 billion yuan in 2024, reflecting a growth of over 70% [9] Group 5: Automotive Sector Developments - Chongqing Department Store's automotive division has integrated multiple brands to provide convenient services, achieving over 1,500 retail orders in March, with electric vehicles making up over 60% of sales [10] Group 6: Tax Refund Innovations - The introduction of "immediate tax refund" services for international travelers is expected to enhance cross-border shopping experiences in Chongqing [11] - Since the start of the pilot program, the department store has processed over 300,000 yuan in tax refunds, benefiting international visitors [11]