\u3000\u30 Shenzhen Fountain Corporation(000005) 01 Wuhan Department Store Group Co.Ltd(000501) )
Key points
In 2021, the company's revenue decreased by 6.71% year-on-year, and the net profit attributable to the parent company increased by 37.45% year-on-year
On March 30, the company released its annual report for 2021: in 2021, the operating revenue was 7.127 billion yuan, a year-on-year decrease of 6.71%, and the net profit attributable to the parent was 752 million yuan, equivalent to 0.98 yuan of fully diluted EPS, a year-on-year increase of 37.45%, and the net profit deducted from the non attributable parent was 724 million yuan.
In terms of single quarter split, 4q2021 achieved an operating revenue of 1.841 billion yuan, a year-on-year decrease of 42.27%, a net profit attributable to the parent of 204 million yuan, equivalent to a fully diluted EPS of 0.27 yuan, a year-on-year decrease of 40.83%, and a deduction of non attributable net profit of 177 million yuan.
In 2021, the company's comprehensive gross profit margin increased by 10.78 percentage points, and the period expense rate increased by 4.18 percentage points
In 2021, the company's comprehensive gross profit margin was 45.90%, an increase of 10.78 percentage points year-on-year. In terms of single quarter split, the comprehensive gross profit margin of 4q2021 company was 49.94%, up 21.69 percentage points year-on-year. The company's gross profit margin increased significantly due to: 1) the growth rate of real estate business with low gross profit margin decreased due to the gradual completion of house delivery; 2) Other businesses with high gross profit margin (rental business) benefit from the low base caused by rent reduction in 2020 and have a high growth rate.
In 2021, the company's expense rate during the period was 29.41%, with a year-on-year increase of 4.18 percentage points, of which the sales / management / financial expense rate was 24.44% / 3.79% / 1.18% respectively, with a year-on-year change of + 3.22 / + 0.84 / + 0.12 percentage points respectively. 4q2021's expense rate during the period was 34.04%, with a year-on-year increase of 20.83 percentage points, of which the sales / management / financial expense rate was 27.03% / 4.64% / 2.37% respectively, with a year-on-year change of + 17.46 / + 2.33 / + 1.04 percentage points respectively.
The project development is progressing smoothly, and the real estate business continues to deliver houses
Project progress: during the reporting period, the company's dreamtime project entered the closing and acceptance sprint stage. By the end of 2021, dreamtime indoor Park and ice and snow park had been fully mobilized for construction as planned, and the investment promotion work plan had been implemented and the plane had been finalized. The Nanchang Suning Plaza project, which was acquired with an investment of 3.3 billion yuan, has completed the capping of the main structure. Real estate business: during the reporting period, the company continued to deliver houses for the construction project of times garden. By the end of 2021, the balance of advance payment that had not been transferred to income was 450 million yuan.
Raise the profit forecast and maintain the "buy" rating
The company's performance exceeded expectations, mainly due to the significant increase of the company's gross profit margin in 2021. In view of the fact that the implementation of the company's dream era project will be conducive to the improvement of the company's revenue and profit, we raised the prediction of the company's EPS in 2022 / 2023 by 8% / 10% to 1.13/1.22 yuan, and increased the prediction of the company's EPS in 2024 by 1.28 yuan. The company is the leader of Wuhan Department store. The landing of the dream era will help consolidate the company's regional competitive advantage and maintain the "buy" rating.
Risk tip: the progress of dream era project is lower than expected, and the competition in Hubei retail market is intensified.
