Texhong (002419) Semi-annual Report Commentary: Don’t be afraid to challenge steady development

Texhong (002419) Semi-annual Report Commentary: Don’t be afraid to challenge steady development

Event: Release of semi-annual report, revenue of $ 9.6 billion, an increase of 1.

61%, profit 6.

4.6 billion, an increase of 4.


The industry is facing a low-speed challenge in the first half of 2019, and the total 深圳桑拿网 social retail sales will increase by 8%.

4%, by retail format, the retail sales of supermarkets, department stores, specialty stores and specialty stores increased over the same period of the previous year.

4%, 1.

5%, 5.

3% and 3.


But online retail sales amounted to 48161 billion yuan, an increase of 17 per year.

8%, accounting for 19% of total retail sales of consumer goods.


The physical department store industry further fell into a downturn, and the company’s revenue increased by 1 in the first half.

6% is only a reflection of the overall downturn in the industry.

Three strategies to promote transformation Facing industry challenges, the company embraces the new retail era of O2O online and offline integration, and promotes transformation with three major strategies of digitalization, experience, and supply chain.

Strengthening digital customer reach and insight, more than 8,000 people interacted to obtain information or consumption through the Rainbow App and Rainbow Mini Program; strengthened experiential upgrades, thickened the service value and differentiated characteristics of stores, and promoted the integration of national supply chains, which promotedThe company’s revenue in food, catering and entertainment, daily necessities, etc. has increased significantly.

Building a shopping mall on format expansion Shopping malls are the first choice for consumer experiential consumption. They are home to consumers in pursuit of new life experiences and social activities. They have experience advantages that e-commerce cannot replace.

Therefore, based on 15 shopping malls, 68 department stores, 82 supermarkets, and 152 convenience stores, the company focused on the expansion of its business format, and opened two new stores in Guangdong and Jiangxi in the first half of the year.The shopping center, a shared center focusing on happy hour and family life, is expected to become a new growth point in the future.

Earnings 深圳桑拿网 forecast and investment prospects are based on the reality of the industry downturn and the company’s low-speed growth in the first half of the year. We expect the company’s long-term revenue to grow2.

5%, expected revenue is estimated at 19.6 billion, and expected profit is 9.

400 million, budget income 0.

79 yuan, 15 times of dynamic assessment, preliminary estimation of recommendation level.

Risks suggest that retail growth continues to decrease, and e-commerce pressure continues to deepen