Wangfujing(600859) 广发证券·2024-11-18 02:38Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 17.16 CNY per share based on a 32x PE ratio for 2024 [7][44]. Core Insights - The company reported a revenue of 8.499 billion CNY for the first three quarters of 2024, a year-on-year decrease of 8.27%, with a net profit attributable to shareholders of 427 million CNY, down 34.13% year-on-year. In Q3 2024, revenue was 2.464 billion CNY, down 14.61% year-on-year, while net profit was 134 million CNY, an increase of 2.53% year-on-year [2][26]. - The company is focusing on optimizing its business structure, with a higher proportion of high-margin businesses such as shopping centers and outlets, which supports stable profitability. The gross margin for the first three quarters of 2024 was 40.17%, and for Q3 2024, it was 38.29%, showing a slight decline year-on-year [2][26][32]. - The company is actively expanding its duty-free business, having won bids for duty-free projects at Harbin Taiping International Airport and Mudanjiang Hailang International Airport, which broadens its operational channels [3][32]. Summary by Sections Business Performance - For the first three quarters of 2024, the company achieved a revenue of 84.99 billion CNY, down 8.27% year-on-year, and a net profit of 4.27 billion CNY, down 34.13% year-on-year. In Q3 2024, revenue was 24.64 billion CNY, down 14.61% year-on-year, while net profit was 1.34 billion CNY, up 2.53% year-on-year [2][26]. Profitability and Cost Structure - The company’s gross margin remains stable due to the increasing revenue share from high-margin segments like shopping centers and outlets. The gross margin for the first three quarters of 2024 was 40.17%, and for Q3 2024, it was 38.29%, reflecting a year-on-year decline of 0.98 and 1.1 percentage points, respectively. The net profit margin for Q3 2024 was 5.42%, an increase of 0.9 percentage points year-on-year [2][26][32]. Asset Structure Optimization - The company plans to optimize its asset structure by publicly transferring 100% equity of Beijing Wangfujing Department Store Property Management Co., Ltd. and initiating the demolition and reconstruction of certain properties in Beijing [3][32]. Duty-Free Business Outlook - The company is optimistic about its long-term duty-free business layout, having won bids for new duty-free projects and actively promoting the establishment of city duty-free stores in compliance with new policies [3][32][41]. Earnings Forecast - The earnings forecast has been adjusted, with expected net profits for 2024, 2025, and 2026 at 609 million CNY, 696 million CNY, and 771 million CNY, respectively, reflecting a year-on-year decrease of 14.2% in 2024, followed by increases of 14.4% and 10.7% in the subsequent years [4][41].