\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 612 Lao Feng Xiang Co.Ltd(600612) )
The net profit attributable to the parent company in 2021 increased by 18.30% year-on-year
The company issued the announcement of 2021 annual performance express: in 2021, the company realized the net profit attributable to the parent company of 1.867 billion yuan, and the net profit attributable to the parent company of the same period in 2020 was 1.586 billion yuan, equivalent to a fully diluted EPS of 3.59 yuan. The net profit attributable to the parent company increased by 18.30% year-on-year, and the company’s performance slightly exceeded expectations. In a single quarter, 4q2021 achieved a net profit attributable to its parent company of 378 million yuan, a year-on-year increase of 6.99%.
The company’s operating revenue increased by 13.47% year-on-year in 2021
The company achieved an operating revenue of 58.691 billion yuan in 2021, an increase of 13.47% over the same period in 2020. In a single quarter, 4q2021 achieved an operating revenue of 8.904 billion yuan, a year-on-year increase of 13.36%.
The company’s performance slightly exceeded our expectations, mainly due to: 1) the company entered the peak period of opening stores, and the speed of opening stores remained high. By the end of 2021, the company had a total of Lao Feng Xiang Co.Ltd(600612) marketing outlets of 4945 (including 16 overseas silver buildings), with a net increase of 495 in 2021. 2) With the increasing proportion of franchise channels, the company’s sales expense rate and management expense rate continue to decline, and the company’s profitability continues to be improved. 3) Deepen the comprehensive reform of “double hundred actions” and continuously improve the operation and management efficiency of the company. 4) In 2021, the prosperity of the gold jewelry sub industry remained high, especially the gold category benefited from the increased demand for investment preservation, Lao Feng Xiang Co.Ltd(600612) as the leader of China National Gold Group Gold Jewellery Co.Ltd(600916) it benefited from the high outlook of gold.
The issuance of the articles of association applicable to H shares is conducive to the company’s expansion of overseas business
On September 12, 2021, the company issued an announcement on the revision of the listing and listing scheme of domestic listed foreign shares on the main board of the stock exchange of Hong Kong Limited in the form of introduction. Subsequently, the announcement of Lao Feng Xiang Co.Ltd(600612) articles of Association (applicable after H-share listing) was issued on October 12, 2021. If the company’s B-share to H-share conversion is successfully implemented, it will help the company further expand its overseas business and lay a foundation for the company to promote the process of internationalization.
Raise the profit forecast and maintain the “buy” rating
The company’s performance slightly exceeded expectations, mainly because the company entered the period of rapid store expansion, which is conducive to improving the company’s revenue and profit. We raised the forecast of EPS of the company from 4% / 6% / 13% to 3.59/4.20/4.90 yuan in 2021 / 2022 / 2023. As a China National Gold Group Gold Jewellery Co.Ltd(600916) leader, the company benefited from the high scenery of gold jewelry, dominated by channel brands and maintained the “buy” rating.
Risk tip: the fluctuation of gold price and RMB exchange rate is greater than expected, and the channel expansion speed is lower than expected.
