\u3000\u30 Shenzhen Quanxinhao Co.Ltd(000007) 15 Zhongxing Shenyang Commercial Building Group Co.Ltd(000715) )
The company’s 1q2022 revenue decreased by 9.17% year-on-year, and the net profit attributable to the parent decreased by 17.85% year-on-year
On April 22, the company announced the first quarterly report of 2022: 1q2022 achieved an operating revenue of 210 million yuan, a year-on-year decrease of 9.17%, a net profit attributable to the parent company of 19 million yuan, equivalent to a fully diluted EPS of 0.05 yuan, a year-on-year decrease of 17.85%, and a deduction of non attributable net profit of 19 million yuan, a year-on-year increase of 12.43%.
The company’s 1q2022 comprehensive gross profit margin increased by 2.02 percentage points, and the period expense rate increased by 0.16 percentage points
The comprehensive gross profit margin of 1q2022 company was 52.98%, with a year-on-year increase of 2.02 percentage points.
1q2022 company’s expense rate during the period was 37.69%, with a year-on-year increase of 0.16 percentage points, of which the sales / management / financial expense rate was 5.58% / 35.30% / – 3.20% respectively, with a year-on-year change of + 0.69 / + 2.41 / – 2.93 percentage points respectively.
Set up wholly-owned subsidiaries to promote business model innovation and format innovation
On March 15, 2022, the company held the 35th meeting of the seventh board of directors, deliberated and passed the proposal on establishing a wholly-owned subsidiary. In order to speed up the pace of business expansion, expand the business scale, and promote the innovation of business model and format, the company invested 5 million yuan of its own capital to establish a wholly-owned subsidiary as a platform for asset light operation and new business development. Shenyang Zhongxing Shenyang Commercial Building Group Co.Ltd(000715) Management Consulting Co., Ltd., a wholly-owned subsidiary, was incorporated on March 25, 2022.
On February 28, 2021, the company held the 21st Meeting of the seventh board of directors, deliberated and passed the proposal on canceling the wholly-owned subsidiary, which cancelled the wholly-owned subsidiary Shenyang Zhongxing culture media Co., Ltd. in order to further integrate business resources, form marketing synergy and improve operation efficiency. On March 21, 2022, Shenyang Zhongxing culture media Co., Ltd. completed the cancellation of registration.
The company’s 1q2022 revenue and profit declined, mainly due to the closure of the company’s main stores due to the repeated epidemic in Northeast China. The company issued an announcement on the resumption of business of the company’s department stores on April 13, 2022. The department store format of the company has resumed business since April 13, 2022. While fulfilling the social responsibility of epidemic prevention and control and strictly implementing various measures for epidemic prevention and control in business places, the company will actively carry out Wuxi Online Offline Communication Information Technology Co.Ltd(300959) all-channel business promotion, publicity and promotion, and try to ensure the living and shopping needs of consumers.
Cut the profit forecast and maintain the “overweight” rating
The company’s performance was lower than expected, mainly due to the impact of the epidemic in Northeast China. In view of the uncertain recovery process of the epidemic, we lowered our forecast of EPS for 2022 / 2023 / 2024 by 26% / 23% / 23% to 0.27/0.29/0.31 yuan. The company has certain competitive advantages in Shenyang, actively carries out business model innovation and maintains the “overweight” rating.
Risk tip: the operation of the main stores did not meet the expectations, and the operation improvement after the mixed reform did not meet the expectations.
