Wangfujing(600859) 光大证券·2024-11-07 06:17Investment Rating - Maintain "Buy" rating despite downward revision of EPS forecasts for 2024/2025/2026 by 14%/15%/15% to 0.51/0.55/0.58 yuan respectively [4] Core Views - Revenue for 1-3Q2024 decreased by 8.27% YoY to 8.499 billion yuan, with net profit attributable to shareholders down 34.13% YoY to 427 million yuan [1] - 3Q2024 revenue fell 14.61% YoY to 2.464 billion yuan, but net profit attributable to shareholders increased 2.53% YoY to 134 million yuan [1] - Comprehensive gross margin for 1-3Q2024 declined by 0.98 percentage points to 40.17%, while period expense ratio rose by 1.93 percentage points to 29.87% [2] - The company terminated its joint venture supermarket business in 2Q2024 and opened the Guiyang Guomao CCPARK shopping center on September 21, 2024 [3] - Total passenger flow across all formats showed slight YoY growth in the first three quarters of 2024 [3] Financial Performance - Operating income forecast for 2024/2025/2026 is 11.161/11.364/11.544 billion yuan, representing growth rates of -8.70%/1.82%/1.58% respectively [5] - Net profit attributable to shareholders is projected at 580/619/655 million yuan for 2024/2025/2026, with growth rates of -18.22%/6.73%/5.82% [5] - ROE (diluted) is expected to be 2.89%/3.02%/3.13% for 2024/2025/2026 [5] - P/E ratio is forecasted at 31/29/27 for 2024/2025/2026 [5] Operational Highlights - The company operates 79 large-scale comprehensive retail stores with a total construction area of 5.233 million square meters as of 3Q2024 [3] - Entertainment and children's experience categories showed relatively fast sales growth [3] - The company continues to improve store ecosystems and enrich diversified supporting projects [3] Valuation Metrics - Current price: 15.72 yuan with a total market capitalization of 17.843 billion yuan [6] - 52-week price range: 11.36-18.16 yuan [6] - 3-month turnover rate: 190.38% [6]