Ewushang A (000501): 2019Q1 net profit +3.61% Expense Control Strengthened to Drive Profitability Enhancement

Ewushang A (000501): 2019Q1 net profit +3.61% Expense Control Strengthened to Drive Profitability Enhancement
The first quarter of 2019 results are basically in line with expectations. The first quarter of 2019 results announced by Ewushang A: operating income 47.5 ‰, the ten-year average of 1.81%; net profit attributable to parent company2.95 ppm, a ten-year increase3.61%, net profit after deduction is increased by 3 per year.90%, the revenue side was in line with expectations, and the profit side 杭州夜网论坛 improved slightly, mainly due to the strengthening of cost control. Development trend 1, the revenue side continues to expand, but the scale has increased and narrowed.The company achieved 47 revenue in 2019Q1.5 ‰, at least -1.81%, continuing the repeat situation.From the perspective of quarterly trends, the revenue performance in the first quarter of 2018 was better than the 2018 quarter (revenue ten years -2.3%) and 18Q4 (revenue quarter-6).5%) narrowed down slightly, but still weaker than 18Q1 (revenue +3 twice).5%). 2. Expense control drives profitability.Comprehensive gross profit margin was flat at 20.7%, during which the overall expense ratio fell to 0.9ppt to 11.4%, of which, the sales expense ratio decreases by 0 every year.6ppt to 10.2%, the management expense rate drops by 0 every year.2ppt to 1.2%, the cost control has been strengthened, and the financial expense ratio decreased by 0 year-on-year.1ppt to 0.03%, the main reason is to return bank loans.Operating margins increase by 0 every year.6ppt to 8.4%, the net profit margin gradually increased to 0.3ppt to 6.2%, of which non-operating income is ten years -33.4%, mainly due to the decrease in waste income. 3. Pay attention to the expansion of outlets and the progress of the Dream Project.Facing the increasingly fierce market competition, in 2019, the company will focus on the optimization of existing outlets and promote the in-depth integration of online and online outlets. At the same time, the expansion of new outlets is expected to accelerate. Among them, the supermarket format explores the “big store with small store” model, and the shopping center moves to the second levelThe city sinks.In addition, the improvement of employee incentives and incentives is expected to enhance team vitality and help improve operations and improve quality and efficiency.In terms of project 杭州夜生活网 construction progress, Dream Times Plaza project construction will be fully accelerated in 2019. The company plans to cap the main structure of the project in Q4. At this stage, it is actively promoting the implementation of the park project and the signing of investment invitations. We expect to gradually upgrade the company after it officially opens in 2020Of regional market share, but we need to pay attention to the impact of the dream era project incubation period on profit. Earnings forecast We temporarily maintain our 2019 / 20e earnings forecast1.20/1.17 yuan unchanged. Estimates and recommendations currently sustainably correspond to 19/20 years9.2/9.4x P / E.Maintain recommended level and target price of 15.0 yuan, corresponding to 12/13 times P / E in 19/20, compared with current expectations of 36%. Market competition in risk areas has intensified; the project construction in Dream Times has fallen short of expectations.