Sanjiang Shopping (601116) Company Express: Hangzhou, Zhejiang and Hainan’s sales impacted revenue in the third quarter

Sanjiang Shopping (601116) Company Express: Hangzhou, Zhejiang and Hainan’s sales impacted revenue in the third quarter

The company disclosed three quarterly reports.

Revenue for the first three quarters of 30.

75 ppm, a decrease of 2 per year.

12%, net profit attributable to mother 1.

370,000 yuan, an annual increase of 70.

92%, basic profit income is 0.

25 yuan.

The third 北京桑拿洗浴保健 quarter revenue was 9.

80 ppm, a decrease of 7 per year.

94%, net profit attributable to mothers is 24.45 million yuan, an annual increase of 6.


Key points of investment Hangzhou, Zhejiang and the sea affected the revenue, and the net profit in the third quarter increased steadily: the revenue side, the company Q1, Q2, Q3 achieved revenue growth2.

4%, -0.

1%, -7.

9%, the third quarter revenue growth indicators, mainly from closing stores in the first half of the year and Hangzhou and Zhejiang sea out of the watch.

The two Hema stores in Hangzhou and Zhejiang accounted for about 7% of the company’s revenue in 18 years.

On the net profit side, the companies Q1, Q2, and Q3 achieved net profit increase of 40%, 215%, and 6.

3%, the third quarter net profit grew steadily, the growth rate was mainly affected by changes in single quarter revenue.

Ali Zhan ‘s decision to promote the increase of net interest rate, inventory turnover continued to be faster than comparable companies: In terms of profitability, the company ‘s direct acquisition ratio increased in the third and third quarters, pushing the gross profit rate down slightly.

06pct to 24.

12%, omni-channel transformation and store expansion increased the sales expense ratio by 1.

25pct to 20.

06%, the management expense rate increased by 0 in ten years.

27 points to 3.

At 01%, Ali’s fall to the ground pushed the financial expense ratio down to -2.

62%, the final company’s net interest rate extended by 0.

33pct to 2.


In terms of inventory, Sanjiang Shopping’s inventory turnover rate in the first three quarters was about 7.

7, continue to be higher than Yonghui Supermarket, Jiajiayue and other comparable companies.

In terms of cash flow, the company’s cash inflows from operating activities in the third and third quarters may have fallen respectively6.

5%, 7.

0%, the final net operating cash flow slightly decreases by 1.


Fund-raising projects are expected to promote scale growth: The non-public issuance of fund-raising investment projects that were launched in 2018 will be modified to complement the chain supermarket development project. It is planned to invest 400 million US dollars, build 100 new small stores and open 30 community stores within 3 years.

By 2022, the number of company supermarkets is expected to reach about 160, with a compound annual growth rate of about 7%; the number of neighborhood stores is expected to be nearly 180, with a compound annual growth rate of about 26%.
The orderly expansion of the number of channels will help promote the company’s continued improvement in revenue.

Investment suggestion: Sanjiang Shopping is a regional supermarket leader based in Ningbo. Hangzhou Zhehai Huadi has an impact on revenue.
Fund-raising projects bring channel outreach, new retail transformation promotes endogenous growth, and work with Ali to improve supply chain efficiency.

We predict that the company’s annual revenue from 2019 to 2021 will be 0.

29, 0.

28 and 0.

31 yuan.

Return on net assets were 5.

0%, 4.

9% and 5.


At present, the company’s PE (2019E) is about 50 times, and the “overweight-A” recommendation is maintained.

Risk warning: cooperation with Alibaba may be less than expected; the decrease in supermarket stores will affect revenue growth; the effect of retail transformation may be less than expected; savings in the early stage of channel expansion and increase in expenses