\u3000\u3 China Vanke Co.Ltd(000002) 697 Chengdu Hongqi Chain Co.Ltd(002697) )
Performance description: Chengdu Hongqi Chain Co.Ltd(002697) released the annual report of 2021. The company achieved an annual operating revenue of 9.351 billion yuan / + 3.29%, a net profit attributable to the parent company of 481 million yuan / – 4.66%, and a net profit not attributable to the parent company of 439 million yuan / – 4.01%. In Q4 in a single quarter, the operating revenue was 2.351 billion yuan / + 4.71%, and the net profit attributable to the parent company was 132 million yuan / + 29.62%. The company’s revenue and operation in the fourth quarter were in line with expectations, and the profit slightly exceeded expectations.
The slight increase in revenue was mainly driven by the growth in the number of stores opened. In the fourth quarter, the number of stores fluctuated due to the adjustment, the same store suffered some twists and turns, and the quarterly performance was affected. The transformation of stores was stable to ensure that the company was in the rising channel of long-term operation. Q4 achieved an operating revenue of 2.351 billion yuan / + 4.71% in a single quarter. In terms of stores, by the end of 2021, the company had 3602 stores, 412 new stores (mainly distributed in Sichuan Province), 146 closed stores and 193 old stores upgraded. After adjustment, the overall operation of the company has improved steadily. In the same store, the supermarket industry was affected by many factors such as weak consumption and downward CPI in the second half of 21 years, but the pressure of community group purchase was lower than expected. The company constantly adjusts its own store structure and accumulates strength for long-term development.
The gross profit margin of the company in 2021 was 29.67%, with a year-on-year increase of 0.22pcts, mainly due to the change of accounting policies and standards, and the gross profit margin of the company with the same caliber decreased; The gross profit margin of 2021q1 / Q2 / Q3 / Q4 is 29.93% / 29.58% / 29.73% / 29.43%, with a year-on-year change of + 0.26pcts / – 1.18pcts / – 1.21pcts / + 3.01pcts.
The annual sales / management / financial expense ratio of the company in 2021 was 23.11% / 1.31% / 0.77% respectively, with a year-on-year change of + 0.74pcts / – 0.32pcts / + 0.47pcts. Among them: ① 2021q4 sales expense rate is 23.66%, with a year-on-year increase of 3.30pcts. This was mainly due to the distortion of the current quarter’s rate caused by the adjustment of accounting standards in the fourth quarter of last year and the increase of sales discounts for profit making consumers. ② In 2021q4, the management fee rate was 0.37%, a year-on-year decrease of 1.16pcts, which was diluted with the scale effect. ③ The financial expense rate of 2021q4 was 0.65%, a year-on-year decrease of 0.51pcts.
The net profit attributable to the parent company in 2021 is 481 million yuan / – 4.66%; Deduct the net profit of 439 million yuan / – 4.01%. Among them, the net profit attributable to the parent company in 2021q4 was 132 million yuan, a year-on-year increase of 29.62%; Deduct the net profit not attributable to the parent company of 117 million yuan, + 61.48%. In 2021, the net profit attributable to the shareholders of the company was 518 million yuan, with a year-on-year increase of 2.61%, of which the net profit of main business was 385 million yuan. In 2021, Xinwang bank realized an investment income of 137 million yuan. After deducting the impact of Xinwang bank, the company’s main business profit decreased.
The company has growth in exhibition stores, business efficiency and other dimensions.
Investment suggestion: looking forward to 22q1, the company began to enter the upward channel. In the same period, the low base, the relatively good consumption situation in Chengdu and the improvement of competition, the company is expected to start the stage of high-quality income growth and profit growth in 2022q1. Because it is optimistic that the main business will enter a long upward cycle, the company slightly increased the net profit attributable to the parent company from 546 million and 606 million yuan to 563 million and 647 million yuan in 20222023, and increased the net profit attributable to the parent company by 698 million yuan in 2024, Maintain recommendations.
Risk warning: the consumer demand of residents is declining; Operating costs continue to grow; Industry competition intensifies
