\u3000\u3000 Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) (600655)
Born in the old shopping mall, the leading leader in jewelry and real estate: Yu Garden shopping center, formerly known as “old eight stocks”, has become the flagship platform of Fosun Group Holdings’s “happy industry”. It now owns jewelry, real estate, Baijiu, food, cosmetics, watches, food and medicine. From the perspective of revenue, the company’s revenue is mainly gold and jewelry in industrial operation. From the perspective of gross profit, the company’s gross profit is mainly property development and sales.
The gold jewelry market is booming, and the product matrix is constantly improved: China’s jewelry market continues to expand, sink, the market space is considerable, and the industry concentration has an upward trend. There is still a large space for the future development of the company’s gold jewelry business. The company continues to strengthen the comprehensive coverage of the pillar industries of gold and jewelry. In terms of industrial chain, Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) and its affiliated companies hold nearly 50% of the shares of Zhaojin mining industry in order to obtain more profits in the industrial chain; On the product side, in addition to its own brands Laomiao and Yayi, the company has continuously acquired overseas high-end jewelry brands including Damiani, djula and Salvini in recent years, covering the product brand range from luxury brand to mass brand. In addition, the company independently incubates and cultivates the diamond brand lusant to enrich the product matrix.
Catering focuses on time-honored brands, and the chain strategy speeds up business expansion: the company takes the time-honored catering culture as the core and the chain layout as the development strategy, making the single store model easy to copy. The catering related revenue of 1h2021 company reached 409 million yuan, with a year-on-year increase of 3.7% and a gross profit margin of 65.7%. As of June 30, 2021, 32 Suzhou style noodle restaurants in songhelou have been opened, 37 have signed contracts and have not opened stores. The average daily sales of a single store is about 25000 yuan, with a gross profit margin of 70%.
The retail sales of multi track layout, the product added to the national tide elements: Food and beverage, the company joined the Baijiu and mushroom track, Baijiu business grew rapidly, 2020/1H2021 achieved revenue 6.18/9.72 billion, gross profit 3.56/5.78 billion; In terms of cosmetics, the company has two large and medium-sized high-end brands, Ahava and Wei, and incubates the overseas trend cosmetics brand xway. The gross profit margin of 1h2021 cosmetics business reaches 66.6%; In the pharmaceutical sector, Tong hanchuntang under the Group actively carries out TCM health care business. In addition, the company is newly involved in the layout of Guochao watches and pet health, and comprehensively layout the retail business.
Fosun asset injection and accelerated real estate layout: after the company’s major restructuring in 2018, Fosun injected a large number of high-quality real estate resources into the company. Affected by the epidemic, in 2020, the company’s real estate related business revenue was RMB 18.758 billion, a year-on-year decrease of 10.64% compared with 2019. However, the company has made greater efforts to obtain land. In 2020, it won 8 lands and added 2.6073 million square meters of land to be developed, so as to prepare in advance for the real estate recovery after the epidemic situation improves. Profit forecast, valuation and rating: we estimate that Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) from 2021 to 2023, the total operating revenue will be RMB 51.821/59.074/66.45 billion, the net profit attributable to the parent company will be RMB 3.851/41.01/4.349 billion, the corresponding EPS will be RMB 0.99/1.05/1.12, the target price of the company will be RMB 12.21, corresponding to 12 times PE in 2022, and the “buy” rating will be given for the first time.
Risk tip: the effect of business coordinated development is less than expected, market competition intensifies, and real estate policy regulation is less than expected.
