\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 888 China Tourism Group Duty Free Corporation Limited(601888) )
Events: (1) in the past 21 years, the company achieved revenue of 67.676 billion yuan, with an increase of 28.67% and net profit attributable to the parent company of 9.654 billion yuan, with an increase of 57.23%. It plans to distribute cash dividends of 15 yuan (including tax) for every 10 shares. (2) 22q1 company achieved a revenue of 16.782 billion yuan, a decrease of 7.45% and a net profit attributable to the parent company of 2.563 billion yuan, a decrease of 9.99%.
Comments:
The dividend of tax exemption policy on outlying islands continued to ferment, and Hainan’s income increased rapidly. Benefiting from the continuous fermentation of the dividend of the 20-year offshore tax exemption policy, Hainan’s income increased rapidly, including Haitang Bay’s income of 35.51 billion yuan, an increase of 66.58% and Haimian’s income of 15.962 billion yuan, an increase of 61.05%. On the day, Shanghai realized an income of 12.491 billion yuan, a decrease of 9.02%, and on the day, China realized an income of 1.907 billion yuan, a decrease of 40.45%.
The increase in discounts led to a decline in gross profit margin. Due to the impact of the epidemic and the increase of discounts, the comprehensive gross profit margin in 21 years decreased by 6.96 PCT to 33.68%, including 7.08 PCT to 37.82% for duty-free goods and 7.96 PCT to 24.59% for taxable goods.
The new rental agreement has brought about a sharp decline in the sales expense rate. The 21 year sales expense rate decreased by 11.11pct to 5.71%, mainly due to the implementation of the new rental agreement at Beishang airport and the reversal of the rent at Beijing airport. The rate of administrative expenses increased by 0.21 PCT to 3.32% at the same time; The financial expense rate increased by 1.09pct to -0.06%.
Benefiting from income tax and rent return, the overall net interest rate increased. In 21 years, the company realized a net profit attributable to the parent company of 9.654 billion yuan, excluding 740 million yuan returned from income tax and 1.14 billion yuan returned from the rent of capital airport, and the operating profit was 7.774 billion yuan. The company’s overall net profit margin increased by 2.59pct to 14.26%. In terms of splitting, Haitang Bay realized a net profit of 4.168 billion yuan, an increase of 40.46% and a decrease of 2.18 PCT to 11.74%; Haimian realized a net profit attributable to the parent company of 793 million yuan, an increase of 20.75% and a decrease of 4.02pct to 11.56%; On the previous day, Shanghai realized a net profit attributable to the parent company of 690 million yuan, a decrease of 44.66% and a net interest rate of 6.97 PCT to 10.83%; Recently, due to the return of rent, China turned losses into profits, realized a net profit attributable to the parent company of 1.381 billion yuan, and the net interest rate increased from – 48.40% to + 72.45%.
In March, it was seriously affected by the epidemic, and the profitability of 22q1 improved month on month. 22q1 achieved an income of 16.782 billion yuan, a decrease of 7.45%. From January to February, the income was 13.1 billion yuan, an increase of about 20%, and the net profit attributable to the parent company was 2.4 billion yuan, an increase of about 20%; According to the calculation, the income in March was 3.682 billion yuan, with a decrease of about 49%, and the net profit attributable to the parent was 163 million yuan, with a decrease of about 81%, which was mainly affected by the epidemic. Sanya International duty-free city closed its stores from March 3 to 7. The net profit margin of 22q1 was 15.3%, of which 18.3% was reached from January to February. The gross profit margin of 21q1 to 22q1 was 39.1% / 37.5% / 31.3% / 26.4% / 34.0% respectively, and the net profit margin attributable to the parent company was 15.7% / 14.4% / 9.0% (deduction) / 6.1% (deduction) / 15.3% respectively. The profitability of 22q1 was significantly improved month on month.
Investment suggestion: the performance of 22q1 is in line with expectations, and its profitability has improved significantly month on month. It grew steadily from January to February, and its income fell in March due to the impact of Sanya epidemic. Considering the repeated outbreaks of Q2 in China, we lowered the net profit forecast of 22 / 23 / 24 to 10.5/141/17.7 billion yuan. The current stock price corresponds to the valuation of 33 / 24 / 19x, maintaining the “buy” rating.
Risk warning: tax exemption policy changes; Tax free market competition intensifies; Risk of recurrent outbreaks; Macro systemic risk.
