Hongqi Chain (002697) 2019 First Quarterly Report Review: Performance in Accordance with Predicted Investment Income and Decreased Income Expenditure Boosts Growth

Hongqi Chain (002697北京夜生活网 ) 2019 First Quarterly Report Review: Performance in Accordance with Predicted Investment Income and Decreased Income Expenditure Boosts Growth
The company’s revenue in 1Q2019 increased by 2 every year.69%, net profit attributable to mothers grows 45 per year.71% On the evening of April 11, the company announced the first quarter of 2019: the first quarter of 2019 achieved operating income of 18.USD 9.2 billion, an annual increase of 2.69%, a growth rate greater than the same increase 2 in 4Q2018.02%; realized net profit attributable to mother to RMB 79.17 million, which translates into a fully diluted EPS of 0.06 yuan, an annual increase of 45.71%, the growth rate is less than the same increase of 126 in 4Q2018.67%; net profit of RMB 76.78 million deducted from non-attributed mothers, an increase of 40 per year.20%, the growth rate is less than the same increase of 289 in 4Q2018.58%.The company’s performance is located in the 1Q2019 performance indicator range provided in the 2018 annual report.  Comprehensive gross profit margin increased by 2.5 averages, the expense ratio increased by 2 during the period.The company’s consolidated gross margin for the first quarter of 2019 for the 41 quarters was 29.89%, an increase of 2 over the same period last year.50 units.  Company expenses for the first quarter of 201926.26%, an increase of 2 over the same period last year.There are 41 singles, of which the sales / management / financial expense ratios are 24.46% / 1.60% / 0.19%, a change of 2 over the same period last year.27/0.23 / -0.08 averages.  The performance of the income side is stable, and the increase in investment income and increase in income has contributed to the development of the company’s value-added service coverage. The increase in value-added service income has brought about a continuous improvement in the company’s gross profit margin, further strengthening of customer revenue, and regional market monopoly advantages.Sustainable consolidation.In terms of business and supermarket business, the company continued to promote open source and expenditure reduction, optimize outlet layout, and increase the proportion of manufacturers’ direct supply of goods, etc., and contributed to the improvement of performance.  Summary of the report Xinwang Bank 重庆耍耍网continued to provide profits to the company, and the company’s net investment income reached 28.68 million yuan, an annual increase of 232.19%.In addition, the corporate income tax expense report has improved, reporting that the combined company’s effective tax rate is approximately 10%, compared with approximately 17.7% in the first quarter of 2018.7%.  We raise our profit forecast and maintain our “overweight” rating. Taking into account the company’s continuous improvement in gross profit brought by the increase in investment margin and investment income, we raise our forecast for the company’s fully diluted EPS for 19-21 to 0.28/0.31/0.35 yuan (previously 0.26/0.28/0.30 yuan), maintaining the “overweight” level.  Risk reminder: Expansion of space is expected, and cooperation with Yonghui exceeds expectations.