In Fujian, when it comes to business chain leaders, Yonghui Supermarket, Xinhuadu Shopping and Dongbai Group must come to mind first, just like the competition of Jiajiayue, Ginza and Liqun Shopping in Shandong market is similar. Dongbai Group, which was developed in Fuzhou, has greatly improved its performance in the past two years, but the company has to face the pressure of poor cash flow and high debt.
Dongbai Group is a time-honored brand in Fujian, and also a leading local commercial retail enterprise. Its predecessor was Fuzhou Department Store, which was established in 1957. After decades of rapid development, the company successfully listed on the A-share market on 1993. By the end of 20 18, the company has 8 department stores and shopping centers, which are located in Fuzhou, Xiamen and Lanzhou respectively.
According to the data of the annual report, Dongbai Group achieved an operating income of 3 billion yuan from 20 18 * *, of which 63% came from commercial retail, 19% from commercial real estate, 12% from supply chain management and 2% from warehousing and logistics. It can be seen that the company's biggest source of income is department store retail.
What is the operating performance of this well-known Fujian department store with Dongbai shopping stores in Fuzhou? In the first three quarters of 20 15-20 19, the company realized operating income of16.3 billion yuan, 3.0/kloc-0.0 billion yuan, 3.86 billion yuan, 3 billion yuan and 2.75 billion yuan respectively. The net profit was RMB 50 million, RMB 654.38+0 billion, RMB 250 million, RMB 260 million and RMB 240 million respectively. It can be seen that Dongbai Group has achieved a substantial increase in revenue and profits since 20 15.
With the huge increase of net profit, Dongbai Group's earnings per share without deduction are also rising continuously, from 0.03 of 20 15 to 0.29 of 20 18, which is quite fast.
Through the above data, we find that the net profit and earnings per share of Dongbai Group have increased significantly, which is a common indicator of high-quality companies. It stands to reason that the company should be sought after by investors, but Dongbai's share price is depressed, and the company's market value has shrunk by nearly 8 billion yuan from the highest point. So, there must be a reason.
In fact, the value of a company's investment depends not only on its performance, but also on its cash flow. Sure enough, the net cash flow from operating activities of Dongbai Group is not so beautiful, and it is basically negative from 20 13. It can be seen that although the company's profits are increasing, it actually doesn't get these cash, but accumulates in accounts receivable and inventory.
Further study of the company's annual report shows that the income and profit growth of Dongbai Group since 20 15 are basically contributed by real estate projects and warehousing and logistics business, especially the Lanzhou Central Real Estate Project, which has made great contributions to income and profit, while the department store business of the company has not increased much.
However, the sustainability of these real estate projects is not strong, and under the impact of e-commerce companies such as JD.COM and Pinduoduo, the company's department store business is still facing the dilemma of growth, so the sustainability of the company's profitability remains to be discussed.
At the same time, in order to develop real estate projects, the debt of Dongbai Group is also increasing day by day. The total debt of the company climbed from 2.83 billion yuan in 20 14 to 5.76 billion yuan in 20 18, which doubled in four years, while the company's monetary funds were pitiful, only 590 million yuan in 20 18. Moreover, the current ratio index reflecting the company's short-term solvency is also declining, which shows how much debt repayment pressure the company has.
The rising debt also makes the financial expenses paid by Dongbai Group increase from 2.75 million yuan in 20 15 to 63160,000 yuan in 20 18, and these expenses are also greatly eroding the company's meager profits.
In addition, the operating capacity of Dongbai Group is also declining. The average raising period of Dongbai Group increased significantly, from 0.38 in 20 13 to 5.98 in 20 18. It can be seen that the company's repayment is getting slower and slower, which is even worse for Dongbai, which is already facing the pressure of debt repayment.
Although the performance of Dongbai Group is very bright, the net operating cash flow of the company is negative. In addition, the company faces high debt repayment pressure under high debt, and the company's operating ability declines. These are all problems that the company has to face. In addition, under the pressure of e-commerce, the traditional department store industry has already felt a deep chill. Dongbai has improved its performance through real estate and logistics projects, and its sustainability needs to be tested. These may also be the focus of investors' investment.