1H13 net profit slightly increased by 0.4% on 11.3% top line growth Wumart just announced its 1H13 results: sales grew by 11.3% to RMB8.5bn and net profit rose by 0.4% to RMB340m. While top line was slightly below our forecast by 0.6%, bottom line beats our expectation by 4% on higher supplier income and better cost control. Operatin g profit slightly declined to RMB501m. SSSG was 3.8%. No interim dividend was declared, same as 1H12. Its net cash maintained at RMB1.7bn.
GPM maintained flat at 9.8% and tota l GPM improved by 0.2ppt to 22.4% thanks to contribution from supplier income and rental income.
Total opex ratio increased by 0.9ppt to 16.5% of sales, of which staff cost ratio up by 0.3ppt with 10% headcount reduct ion, rental cost ratio up 0.3ppt, and D&A ratio down 0.2ppt.
It net added 12 stores during the period, leading to a total of 541 by Jun-end 2013, including 145 superstores and 396 mini marts. It opened 7 directly owned superstores and closed 3 superstores due to demolition and relocation. Saleable area increased by 12% yoy.
The company will have an analyst briefing at 10am today.