\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 415 Zhejiang China Commodities City Group Co.Ltd(600415) )
Performance description: Zhejiang China Commodities City Group Co.Ltd(600415) released the first quarter performance report, with an operating revenue of 1.598 billion yuan, a year-on-year increase of 106.68%; In the first quarter, the net profit attributable to the owners of the parent company was 672 million yuan, a year-on-year increase of 78.13%; The basic earnings per share was 0.12 yuan, a year-on-year increase of 71.43%. In the first quarter, the platform realized gmv32 800 million yuan, a year-on-year increase of 90%. The income and profit of 2022q1 exceeded the previous forecast; Gmv index increased in the off-season, and the promotion of chinabooks platform was smooth.
Comments:
Core view: previously, the company disclosed the pre increase announcement of 2022q1 performance, which is expected to achieve a revenue of 1.543 billion yuan, an increase of about 100% and a net profit attributable to the parent of 567 million yuan, an increase of about 50%. The profit side is mainly due to the higher than expected contribution of investment income driven by real estate delivery and the higher than expected main business; Investment income includes rent contribution, which has long-term sustainability; Excluding investment income, the parent company’s profit increased by more than 50%, which was also strong, mainly due to the company’s revitalizing market business and the smooth realization of chinagoodsvip members. Looking forward to 2022, we expect that the VIP services, logistics business and the original main business contributed by chinabooks will resonate upward in the next few quarters, promote the high-quality and high-speed growth of the company’s profits, and are expected to significantly exceed the consensus expectation.
The high increase in income is mainly due to the increase in the contribution of trade business; The main business and investment income resonated, driving the high increase of profits. The company’s revenue increased by 106.68% in this quarter, and we expect it to be mainly from the contribution of trade business; On the profit side, we expect the main business profit to be jointly promoted by market revitalization and VIP services contributed by chinabooks; The investment income is mainly contributed by the real estate business. The company has been stripped in the body, but some subsidiaries’ real estate business is still being delivered; Including part of the rental profit from supermarkets and shopping centers, with long-term sustainability. In this quarter, the Gmv of chinafoods business further increased by 90%, and the off-season performance is still eye-catching. We look forward to Q2 entering the peak season and a new round of promotion of the company.
Looking ahead to Q2 and the whole year, new businesses are pouring in, and the annual growth is expected to be higher than expected. We expect that from 2022q2, chinagoodsvip membership business and logistics business are expected to gradually contribute incremental revenue and profits, open a new growth module, and the factoring business may be opened in the second half of the year; Throughout the year, the revitalization of market operation, the resonance of many original businesses and the income of chinabooks VIP members are expected to drive the company’s business profits to exceed the consensus expectations of the market.
Investment suggestion: we continue to emphasize that Zhejiang China Commodities City Group Co.Ltd(600415) has three core advantages: relying on Yiwu small commodity distribution center, the importance of trade distribution continues to rise; The company has obvious advantages in logistics, capital and other resources; In the pilot of new business, it has been continuously supported by national, provincial and local government policies (including management rights). At present, the new management is led by senior trade practitioners and airborne technical officials who are proficient in business. The implementation of equity incentive has gradually aroused the enthusiasm of the business team, gradually clarified its development path in trade digitization, finalized partners, clarified business details, gradually clarified financial returns, and opened a new round of growth driven by refined operation, trade aggregation, resource realization and industrial chain upgrading, It is estimated that the net profit attributable to the parent company in 202224 will be RMB 1.69 billion, RMB 2.01 billion and RMB 2.4 billion. There is still room for sustained and rapid expansion of long-term profits. At present, the valuation is low and the purchase level is maintained.
Risk warning: market operation risk; Risk of insufficient talent reserve; Risk of increased external uncertainty
