\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 828 Red Star Macalline Group Corporation Ltd(601828) )
Event: according to the company’s official information on April 12, during the period from February 16 to April 5, the overall sales of Hongxing Red Star Macalline Group Corporation Ltd(601828) “315 hi Shopping Festival” increased by 118% year-on-year, including 65% year-on-year increase in home decoration orders, 128.8% year-on-year increase in home retention consumption, and 62% increase in Internet online traffic.
“Asset light and operation heavy” has expanded steadily, and the main business of stores has remained stable in the past 21 years
The strategy of “light assets and heavy operation” has been steadily implemented, and the “315 hi Shopping Festival”, the largest marketing practice in recent years, has made remarkable achievements. The company’s home decoration, home operation and Internet operation center worked together to build momentum and empower the “315fun four hi Shopping Festival” through Wuxi Online Offline Communication Information Technology Co.Ltd(300959) marketing resource investment, explosive product integration and service link connection, and joined hands with brands and dealers to achieve a new year-on-year increase of 118% in overall sales.
21. The annual report is in line with expectations, the development of entrusted shopping malls has accelerated, and the rental rate has increased again. In 2021, the company achieved an operating revenue of 15.513 billion yuan, a year-on-year increase of 8.97%; The net profit attributable to the parent company was 2.047 billion yuan, a year-on-year increase of 18.31%. In 2021q4, the company realized an operating revenue of 4.159 billion yuan, a year-on-year decrease of 11.7%; Net profit attributable to parent company – 18 million yuan. In the 21st year, Red Star Macalline Group Corporation Ltd(601828) actively expanded the entrusted shopping malls, helped to achieve regional replacement and realized the rapid penetration of sinking market by asset light mode. 1) in the 21st year, the rental and related income of self operated shopping malls was 8.095 billion yuan, with a year-on-year increase of 21.1%, an average rental rate of 94.1%, a year-on-year increase of 2pct, and the same store growth rate of mature shopping malls was 16.8%; 2) The average rental rate of entrusted shopping malls was 91.4%, with a year-on-year increase of 0.7pct. By the end of 21, 327 contracted projects in the entrusted shopping malls prepared by the company had obtained land use certificates / plots, which is expected to further accelerate the development.
The company encrypted the layout of retail network and promoted the upgrading of store status. By the end of the 21st century, the company had operated 95 self operated shopping malls, 278 entrusted shopping malls, 10 strategic cooperation shopping malls and 69 franchised home building materials projects, including 485 home building materials stores / industrial streets. At the same time, the company has formulated a multi store parallel plan and strategically arranged 100 mall shopping malls: 32 No. 1 stores, 9 supreme mall and 59 benchmark shopping malls.
In 2001, the gross profit margin remained stable and the “leverage reduction” was steadily promoted
In 21 years, the company’s comprehensive gross profit margin increased by 0.16pct to 61.67% year-on-year, and the rates of sales / management / R & D / financial expenses were 13.30% / 12.92% / 0.39% / 15.86% respectively, with a year-on-year increase of + 1.40 / + 1.11 / + 0.14 / – 1.45pct respectively. The company continued to optimize its capital structure with steady operating cash flow. In 21 years, its operating net cash flow reached 5.381 billion, a year-on-year increase of 29.35%, with significant improvement; The asset liability ratio decreased by 3.71 PCT to 57.44%, and the interest bearing liability ratio decreased by 4.70 PCT to 27.22%.
Investment suggestion: focusing on the core positioning of “Omni channel Pan home business platform service provider”, the company continues to steadily promote “asset light, operation heavy and leverage reduction”, and the market share and operation efficiency are expected to be further improved in the future. We estimate that the operating revenue of Red Star Macalline Group Corporation Ltd(601828) 2022-2024 will be 175013 billion yuan, 20.013 billion yuan and 21.925 billion yuan, with a year-on-year increase of 12.82%, 14.35% and 9.56%; The net profit attributable to the parent company was 2.447 billion yuan, 2.951 billion yuan and 3.819 billion yuan, with a year-on-year increase of 19.52%, 20.60% and 29.39%, corresponding to PE of 14.1x, 11.7x and 9.0x. Give an investment rating of buy-a.
Risk warning: the risk of repeated epidemic in some areas; The expansion process of the store did not meet expectations; Real estate regulation and control is becoming more and more strict.
