\u3000\u3 China Vanke Co.Ltd(000002) 867 Chow Tai Seng Jewellery Company Limited(002867) )
The net profit attributable to the parent company in 2021 increased by 21.21% 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 1.228 billion yuan, and the net profit attributable to the parent company of the same period in 2020 was 1.013 billion yuan. The net profit attributable to the parent company increased by 21.21% year-on-year, and the company’s performance was lower than expected. In 2021, the company realized a net profit of 1.193 billion yuan deducted from non parent companies. In the same period of 2020, the net profit deducted from non parent companies was 946 million yuan, with a year-on-year increase of 26.17%. In a single quarter, 4q2021 achieved a net profit attributable to its parent company of 222 million yuan, a year-on-year decrease of – 26.25%. 4q2021 achieved a net profit of RMB 229 million, a year-on-year decrease of – 18.96%.
The company’s operating revenue increased by 80.07% year-on-year in 2021
The company achieved an operating revenue of 9.155 billion yuan in 2021, an increase of 80.07% over the same period in 2020. In a single quarter, 4q2021 achieved an operating revenue of 2.682 billion yuan, a year-on-year increase of 54.58%. The company’s revenue is basically in line with expectations.
The rapid growth of the company’s revenue is mainly due to the fact that from the third quarter of 2021, the company carried out gold exhibition and sales business through provincial service centers and gradually made efforts in gold products. The sales of gold products increased significantly in the second half of 2021, and the revenue structure of gold products changed.
In 2021, there was a net increase of 313 stores, and the gold category increased significantly
By the end of 2022, the number of stores of the company had reached 313, and the net number of stores of the company had increased by 2021; In terms of product research and development, in 2021, the company successively launched “love100 constellation Aurora diamond Master Series” and ” Chow Tai Seng Jewellery Company Limited(002867) extraordinary ancient method gold series”, and built six product lines of “happy childhood, romantic flowering, happy flower marriage, auspicious life, beautiful life and bright life”, with significant growth in gold categories. Meanwhile, the company launched the Provincial Service Center Business in the third quarter of 2021, effectively improving the efficiency of supply chain operation and capital turnover.
Cut the profit forecast and maintain the “overweight” rating
The company’s profit was lower than expected, and the revenue basically met the expectation, mainly because the company vigorously developed gold products after the third quarter of 2021, and the gross profit margin of gold products was significantly lower than that of inlaid products, which lowered the overall gross profit margin and net profit margin of the company. In view of the company’s continuous efforts in gold products and the high prosperity of gold benefiting from hedging demand, we expect the proportion of gold products of the company to increase year by year. We lowered our EPS forecast for 2021 / 2022 / 2023 by 7% / 7% / 4% to 1.12/1.34/1.58 yuan. The company opened the provincial representative mode, which is conducive to accelerating the speed of store exhibition, improving the market share and maintaining the “overweight” rating.
Risk tip: the recovery of consumption in low-level cities is lower than expected, and the consumption of gold and jewelry is lower than expected.
