\u3000\u3 China Vanke Co.Ltd(000002) 697 Chengdu Hongqi Chain Co.Ltd(002697) )
In 2021, the company’s revenue increased by 3.29% year-on-year, and the net profit attributable to the parent decreased by 4.66% year-on-year
On April 1, the company released its annual report for 2021: in 2021, the operating revenue was 9.351 billion yuan, a year-on-year increase of 3.29%, the net profit attributable to the parent was 481 million yuan, which was converted into fully diluted EPS of 0.35 yuan, a year-on-year decrease of 4.66%, and the net profit deducted from non attributable to the parent was 439 million yuan, a year-on-year decrease of 4.01%.
In terms of single quarter split, 4q2021 achieved an operating revenue of 2.351 billion yuan, a year-on-year increase of 4.71%, a net profit attributable to the parent of 132 million yuan, equivalent to a fully diluted EPS of 0.10 yuan, a year-on-year increase of 29.62%, and a deduction of non attributable net profit of 117 million yuan, a year-on-year increase of 61.48%.
In 2021, the company’s comprehensive gross profit margin increased by 0.22 percentage points, and the period expense rate increased by 0.90 percentage points. In 2021, the company’s comprehensive gross profit margin was 29.67%, a year-on-year increase of 0.22 percentage points. In terms of single quarter split, the comprehensive gross profit margin of 4q2021 company was 29.43%, up 3.01 percentage points year-on-year.
In 2021, the company’s expense ratio was 25.20%, with a year-on-year increase of 0.90 percentage points, of which the sales / management / financial expense ratio was 23.11% / 1.31% / 0.77% respectively, with a year-on-year change of + 0.74 / – 0.31 / + 0.47 percentage points respectively. 4q2021’s expense rate during the period was 24.67%, with a year-on-year increase of 1.63 percentage points, of which the sales / management / financial expense rate was 23.66% / 0.37% / 0.65% respectively, with a year-on-year change of + 3.30 / – 1.16 / – 0.51 percentage points respectively.
The performance slightly exceeded expectations, with a net increase of 266 offline stores
In terms of offline channel expansion, in 2021, the company opened 412 new stores, closed 146 stores and upgraded 193 old stores. As of December 31, 2021, the company has 3602 stores, most of which are distributed in 23 districts (cities) and counties of Chengdu, including 154 24-hour stores and 91 Gansu Hongqi convenience stores. In terms of member accumulation, as of December 31, 2021, the number of registered members of the company has exceeded 5 million, and the number of customers entering the store has exceeded 400 million. In terms of supply chain, as of December 31, 2021, the company has realized the unified storage and distribution of most commodities and established good cooperative relations with thousands of suppliers.
Maintain the profit forecast and maintain the “overweight” rating
The company’s performance slightly exceeded expectations, mainly due to the fact that the company received a government subsidy of 447044 million yuan in 2021. We maintained the forecast of 0.37/0.39 yuan for the company’s EPS in 2022 / 2023 and added a forecast of 0.41 yuan for the company’s EPS in 2024. The company’s offline stores have been expanded in an orderly manner, and its membership system and supply chain have been continuously improved. It has certain regional advantages in Sichuan and maintains the “overweight” rating.
Risk warning: the lease of some stores cannot be renewed after expiration, and the impact of the epidemic is higher than expected.
