\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 785 Yinchuan Xinhua Commercial (Group) Co.Ltd(600785) )
The company’s 1q2022 revenue increased by 2.81% year-on-year, and the net profit attributable to the parent decreased by 15.49% year-on-year
On March 29, the company released its annual report for 2021: in 2021, the company realized an operating revenue of 5.705 billion yuan, a year-on-year increase of 0.20%, a net profit attributable to the parent company of 51 million yuan, equivalent to a fully diluted EPS of 0.23 yuan, a year-on-year increase of 18.87%, and a deduction of non attributable net profit of 05 million yuan, a year-on-year increase of 143.98%.
On April 21, the company announced the first quarterly report of 2022: 1q2022 achieved an operating revenue of 1.722 billion yuan, a year-on-year increase of 2.81%, a net profit attributable to the parent company of 43 million yuan, equivalent to a fully diluted EPS of 0.19 yuan, a year-on-year decrease of 15.49%, and a deduction of non attributable net profit of 37 million yuan, a year-on-year decrease of 22.86%.
The company’s 1q2022 comprehensive gross profit margin decreased by 1.12 percentage points and the period expense rate decreased by 0.38 percentage points
In 2021, the company’s comprehensive gross profit margin was 27.10%, with a year-on-year increase of 2.12 percentage points. The comprehensive gross profit margin of 1q2022 company was 28.93%, a year-on-year decrease of 1.12 percentage points. The decrease of 1q2022 gross profit margin of the company is mainly due to more promotional activities carried out by the company in the first quarter of 2022.
In 2021, the company’s expense ratio was 25.89%, with a year-on-year increase of 1.98 percentage points, of which the sales / management / financial expense ratio was 18.30% / 3.76% / 3.83% respectively, with a year-on-year change of -0.38 / – 0.06 / + 2.42 percentage points respectively. 1q2022 company’s expense rate during the period was 25.36%, with a year-on-year decrease of 0.38 percentage points, of which the sales / management / financial expense rate was 19.04% / 3.31% / 3.01% respectively, with a year-on-year change of – 0.24 / + 0.27 / – 0.41 percentage points respectively.
Offline channels continue to expand, and stores continue to be adjusted and upgraded
As of March 31, 2022, the company has 321 stores in various formats, including 11 department stores and shopping centers, 213 supermarkets and 97 electrical appliances. In terms of store upgrading and adjustment, in 2021, the head office of the company introduced Guerlain, odeson, Wanguo, lefeiye and other brands, and improved the brand image of Estee Lauder, Dior, Baozi, colletier, Viacom and other brands. In terms of membership system construction, by the end of 2021, the company had a total of about 3.678 million offline and online members.
Raise the profit forecast and maintain the “overweight” rating
The performance of the company’s annual report in 2021 exceeded expectations, indicating that the effect of the company’s store adjustment exceeded our expectations. The company’s performance in the first quarter of 2022 was lower than expected, mainly due to the company’s promotion activities, which affected the company’s short-term performance. However, from the long-term perspective, the promotion activities and the introduction of high-end brands are conducive to improving user stickiness and thickening the company’s profits. We raised the forecast of the company’s EPS in 2022 / 2023 by 36% / 27% to 0.21/0.22 yuan, and added the forecast of the company’s EPS in 2024 by 0.23 yuan. The company continues to expand its offline channels, has a certain competitive advantage in Ningxia, and maintains the “overweight” rating.
Risk tip: regional competitive advantage is impacted, and the post economic cycle affects consumer demand.
