\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 655 Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) )
[key points of investment]
The company released the annual report of 2021, and the net profit attributable to the parent company increased by 7% year-on-year. In 2021, the company achieved a revenue of 51.063 billion yuan, a year-on-year (after adjustment, the same below) + 12.2%; The net profit attributable to the parent company was 3.861 billion yuan, a year-on-year increase of + 6.9%; Deduct the net profit not attributable to the parent company of RMB 2.799 billion, a year-on-year increase of + 13.4%. Among them, the revenue of single Q4 was 18.832 billion yuan, a year-on-year increase of + 25.7%; The net profit attributable to the parent company was 2.06 billion yuan, a year-on-year increase of + 1.9%. Under the adverse impact of the epidemic, it still grew steadily, mainly due to the active expansion of jewelry and fashion businesses in the consumer industry.
Optimize the income structure, steadily expand jewelry stores and accelerate the growth of catering chains. In terms of business, in 2021, the revenue of consumer industry / property development and sales reached 33.062/16.634 billion yuan respectively, a year-on-year increase of + 30.7% / – 10.8%. The accelerated development of consumer industry led to the overall growth of the company; The proportion of sub business revenue was 65% / 33% respectively, with a year-on-year increase of + 9pct / – 8pct, and the proportion of consumer industry further increased. Among them, the revenue of jewelry business was 27.448 billion yuan, a year-on-year increase of + 23.8%; In 2021, the number of jewelry stores increased from 602 to 3981, including 592 in Laomiao and Yayi. At the same time, the company expanded the jewelry brand matrix, djula and Salvini opened offline stores, and successfully incubated and cultivated the diamond brand lusant. The revenue of catering business was 761 million yuan, a year-on-year increase of + 56.8%; The chain layout has entered the fast lane. By the end of 2021, there were 116 direct cultural and catering stores, including 91 Songhe tower; In 2021, more than 80 Songhe towers opened and are expected to expand rapidly in the next three years. In addition, we should continue to expand Baijiu, cosmetics and other sectors, and enrich the layout of the consumption industry.
Gross profit margin and period expense rate are under short-term pressure. In 2021, the gross profit margin of the company was 19.21% (- 0.4pct) and that of the consumer industry was 13.71% (+ 2.3pct), of which the gross profit margin of jewelry and catering business was 8.69% (+ 0.9pct) / 65.17% (+ 9.1pct) respectively, mainly benefiting from the growth of gross profit margin of retail business in gold jewelry and the active expansion of jewelry and chain catering stores. During 2021, the expense rate was 14.24% (+ 2.5pct), and the sales / management / R & D / financial expense rate was 5.22% / 6.29% / 0.17% / 2.56% respectively, with a year-on-year increase of + 1.2pct / + 0.3pct / + 0.1pct / + 0.8pct. The increase in sales and R & D expenses was mainly due to the acquisition of Jinhui Liquor Co.Ltd(603919) consolidated statements in the second half of 2020. The increase in financial expenses was mainly due to the increase in interest expenses and exchange losses.
[investment suggestions]
The company adheres to the two wheel drive of industrial operation and industrial investment, widely distributes the consumer industry, rapidly expands the jewelry business, and accelerates the replication of chain catering. It is optimistic about the steady expansion of the company relying on rich industrial resources. We expect that from 2022 to 2024, the company’s operating revenue will be 58.573/66.663/74.730 billion yuan respectively, with a year-on-year growth rate of 14.71% / 13.81% / 12.10% respectively; The net profit attributable to the parent company was 4.297/47.46/5.131 billion yuan respectively, with a year-on-year growth rate of 11.30% / 10.46% / 8.09% respectively; EPS is 1.10/1.22/1.32 yuan / share respectively, and the corresponding PE is 9 / 8 / 8 times respectively, which is rated as “overweight”.
[risk tips]
The epidemic repeatedly affects offline consumption;
The process of expanding stores is not as expected;
Business collaboration is less than expected.
